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.
Please note that the following document, although believed
to be correct at the time of issue, may not represent the
current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
940495
XXXXXXXXXX F.B. Fontaine
Attention: XXXXXXXXXX
March 30, 1994
Dear Sirs:
Re: Deemed Disposition Rules - Conversion of Use
In our letter dated May 27, 1993 concerning the above-noted subject, we stated that property that was real estate inventory and was subsequently used as a personal residence would be subject to the provisions of paragraph 45(1)(a) of the Act such that there would be a deemed disposition on conversion from inventory to personal use capital property.
As stated in our telephone message left on your voice mail, this position has been changed. The current position is that where a taxpayer permanently converts real estate inventory to capital property which is personal-use property, there will not be a deemed disposition of the inventory for the purposes of paragraph 45(1)(a) and the ultimate sale of the property will not give rise to a gain or loss on income account.
The comments above are an expression of opinion only and are not to be construed as an advance ruling binding on the Department.
We hope our comments will be helpful to you.
Yours truly,
for Director
Manufacturing Industries,
Partnerships and Trusts Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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