7 February 1997 Internal T.I. 9634817 - 118(1)(A)

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:

whether an individual may claim a spousal tax under 118(1)(a) for a spouse who died during the year and also transfer an unused disability tax credit from the new second spouse, in the same year, under 118.8

Position:yes

Reasons:

		February 7, 1997

	Sudbury Tax Services Office	HEADQUARTERS
	Client Assistance Directorate	Sandra Short
(613) 957-8953
	Attention:  Cathy Borton
		963481

Spousal Tax Credit and Transfer to spouse of unused disability tax credit

This is in reply to your enquiry of October 22, 1996, which asks whether an individual may claim a spousal tax credit under paragraph 118(1)(a) for a spouse who died during the year and also transfer an unused disability tax credit from the new second spouse, in the same year, pursuant to section 118.8 of the Act.

We agree with your finding that there is nothing to preclude an individual from claiming an amount under paragraph 118(1)(a) on account of the first spouse and a transfer of the second spouse's disability tax credit to the same individual in the same year, assuming the usual conditions in the law are satisfied. Paragraph 118(4)(a) will, however, preclude the individual from claiming a spousal tax credit for both spouses in the year.

John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch