15 April 1999 External T.I. 9907125 - MAPLE LEAF GOLD COIN

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: Is a maple leaf gold coin necessarily a listed personal property?

Position: No

Reasons: It is a question of fact as to whether a coin or any other property is a listed personal property. Gold coins are likely to be commodity purchases.

XXXXXXXXXX 				990712
J. E. Grisé
April 15, 1999

Dear XXXXXXXXXX:

Re: Maple Leaf Gold Coins

This is in reply to your letter of March 7, 1999, concerning the comments in Interpretation Bulletin IT-332R, Personal-use Property, as they relate to the purchase of maple leaf gold coins.

The question as to whether a coin is a listed personal property (as defined by section 54 of the Income Tax Act) of a taxpayer can only be determined by examining the facts of a particular case. In order to be a listed personal property, the property must be a personal-use property to the taxpayer. As indicated in paragraph 1 of IT-332R, personal-use property includes any property owned by a taxpayer which is used primarily for the personal use or enjoyment of the taxpayer or persons related to the taxpayer.

Generally, the Department considers an investor or speculator in gold coins to be dealing in commodities and the views expressed in the attached Interpretation Bulletin IT-364R, Commodity Futures and Certain Commodities, are applicable. As indicated in paragraph 8 of IT-346R, a speculator may use the income treatment (see paragraph 3 of IT-346R) in reporting gains and losses in commodity futures. However, if income treatment is used in a year by a speculator, that method must be followed consistently from year to year. If that method is chosen, the Department will not permit a change in the basis of reporting.

We hope our comments will be helpful.

Yours truly,

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

Enclosure

c.c. Assistant Director

Client Services Division
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