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.
922244
24(1) Glen Thornley
(613) 957-2101
Attention: 19(1)
October 29, 1992
Dear Sirs:
Re: Farming Loss of a Limited Partner
This is in reply to your letter of July 21, and further to our telephone conversation (Thornley/19(1)) of October 7, 1992, concerning the above noted subject.
As discussed, you are now satisfied that included in the definition of "investment expense" in subsection 110.6(1) of the Income Tax Act are, "all amounts...deducted in computing the individual's income for the year in respect of the individual's share of the amount of any loss of a partnership of which the individual was a specified member in the fiscal period of the partnership ending in the year", even though that individual is a limited partner in a farm partnership.
It was also noted during the telephone conversation of
Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
October 7, 1992 that the losses referred to above would be excluded from the definition of "earned income" in section 146 as a "specified" member of a partnership would not be "actively engaged in the business".
As a final note, it is only those losses that were "deducted in computing the individual's income for the year..." that are required to be included in the calculation of "investment expense".
We trust our comments will be of assistance to you.
Yours truly,
E. Wheeler
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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