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.
Dear Sirs:
We are writing in response to your letter of September 28, 1989 wherein you requested our view on whether, for purposes of subsection 80(1) of the Act, "cash" would be considered capital property within the meaning assigned by paragraph 54(b) of the Act.
Capital property of a taxpayer is defined under paragraph 54(b) of the Act to mean
- (i) any depreciable property of the taxpayer, and
- (ii) any property (other than depreciable property) any gain or loss from the disposition of which would, if the property were disposed of, be a capital gain or a capital loss, as the case may be, of the taxpayer.
Depreciable property has the meaning assigned by subsection 13(21) of the Act.
Therefore, a capital property (other than a depreciable property) must be
- (a) a property, and
- (b) capable of giving rise to a capital gain or capital loss on its disposition.
Pursuant to subsection 248(l) of the Act, property includes money. However, a disposition of money in Canadian currency would not normally result in a capital gain or a capital loss. It is therefore, our opinion that, for purposes of subsection 80(1) of the Act, money in Canadian currency would not normally be considered capital property within the meaning assigned by paragraph 54(b) of the Act.
The foregoing comment represents our general view of the subject matter in your letter. It is not a ruling and in accordance with the guidelines explained in Information Circular 70-6R, dated December 18, 1978, is not binding on the Department.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1989
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1989
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