6 September 1990 Ministerial Correspondence 901904 F - Capital Gains Deductions

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

September 6, 1990

Dear Sirs:

This is in reply to your letter of August 10, 1990 concerning the availability of the capital gains deduction provided in section 110.6 of the Income Tax Act to partners for capital gains realized by the partnership.

In our view, when a partnership disposes of capital property (other than listed personal property) any taxable capital gain or allowable capital loss arising on the disposition is calculated as if the partnership were a separate person by virtue of paragraph 96(1)(c). Any taxable capital gains or allowable capital loses so determined are allocated to the members of the partnership and included in determining their income or loss, or net capital loss, if any, for the year. Where a partner is an individual, any taxable capital gains or allowable capital losses allocated are taken into account in determining his or her capital gains deduction for the year under section 110.6

These comments represent our opinion of the law as it applies generally. As indicated in paragraph 24 of Information Circular 70- 6R dated December 18, 1978 this opinion is not a ruling and accordingly, it is not binding on Revenue Canada Taxation.

We trust this will be of assistance.

Yours truly,

for Director Business and General DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch