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.
Principal Issues:
General Enquiry - Capital Gains Election on Principal Residence
Position TAKEN:
General Information provided
Reasons FOR POSITION TAKEN:
Not Applicable
950479
XXXXXXXXXX D. Zion
March 9, 1995
Dear XXXXXXXXXX:
Re: Principal Residence and Capital Gains Election
We are writing in reply to your letter of February 14, 1995, in which you pose a number of questions related to the capital gains election.
In the February 22, 1994 budget, the federal government announced that the Capital Gains Exemption of $100 000 was eliminated. However, individuals have the opportunity, when filing their 1994 income tax returns, to make an election for property owned on February 22, 1994, to recognize pre-Budget Day accrued capital gains up to the remainder of their $100,000 exemption. With respect to the election on real estate, only the pre-March 1992 gains can be recognized which is based on the proration rules established in the February 1992 Budget.
We are enclosing a copy of the 1994 Capital Gains Guide and the 1994 Capital Gains Election Package for your information. These guides address all the points you raise in your enquiry and specifically include a section that discusses the possibility of an election on an individual's principal residence, the tax implications of such an election and how to make the election if you decide to do so. Should you have any further questions regarding this matter, we suggest that you contact your local Revenue Canada Tax Services office. Upon provision of the facts of the situation they will be in a position to assist you.
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch
Encl.
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