26 February 1990 Ministerial Correspondence HBW4125B4 F - Property Transfers to a Related Minor

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.

February 26, 1990

Dear 19(1)

We are writing in reply to your letter of February 5, 1990.

Where an individual has transferred property (including money) to a related minor or to a trust in which the related minor is beneficially interested at anytime, any income from the property is deemed to be income of the individual for the taxation year unless the minor attained the age of 18 years before the end of the year.  For additional exceptions to this rule and for more details please find enclosed a copy of IT-510 entitled "Transfers and Loans of Property made after May 22, 1985, to a Related Minor".

Also enclosed is a copy of IT-511 entitled "Interspousal Transfers and Losses of Property made after May 22, 1985".

The comments in the above-noted bulletins apply to property transferred into joint ownership.

Child care expenses are dealt with in IT-495R, a copy of which is also enclosed.  Paragraph 1 of the bulletin sets out the purposes for which the child care expenses must be incurred.  Child care expenses incurred to attend a University do not qualify.

The 1989 average exchange rate of the U.S. dollar was 1.1842.

As requested please find enclosed:

-     General Tax Guide and Return Individuals Outside Canada

-     Capital Gains Tax Guide

-     Rental Income Tax Guide

-     Child Care Expenses Tax Guide

We trust this will be of assistance.

Yours sincerely,

C. SavageA/DirectorProvincial and International Relations Division

Enclosures

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