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.
963732
XXXXXXXXXX M.P.Sarazin
Attention: XXXXXXXXXX
December 18, 1996
Dear Sirs:
Re: Limited Partnership Mortgage
This is in reply to your facsimile dated November 6, 1996, wherein you requested our confirmation that a limited partner is not legally or otherwise a mortgagor under a mortgage granted by the limited partnership.
Written confirmation of the tax implications inherent in particular proposed transactions are given by this Directorate only where the transactions are outlined in an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R2. Questions concerning actual fact situations should otherwise be directed to your district tax services office.
A partnership is not a person nor is it deemed to be a person for purposes of the Income Tax Act (the "Act"). Therefore, where a partnership is a mortgagor under a mortgage, the Department has taken the general view that each partner of the partnership is a mortgagor for purposes of the Act.
For the purposes of subsection 4900(4) of the Income Tax Regulations, the determination of whether a limited partner is a mortgagor with respect to a mortgage granted by a limited partnership can only be determined after a review of all of the relevant facts, including both partnership and tax legislation.
We trust the above comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
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© Sa Majesté la Reine du Chef du Canada, 1996
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