Where B disposes of its partnership interest to the other partner, A, with the result that the partnership ceases to exist, B's share of the partnership profits for the fiscal period that is deemed (by virtue of s. 99(1)) to end immediately before that time will be included in the ACB of B's interest. However, this adjustment will not occur if B disposes of its partnership interest to C. Where B maintains the right to receive a nominal amount of partnership property, RC will question whether this amounts to a residual interest for purposes of s. 98.1 so that B will obtain the appropriate basis adjustment with respect to the second situation.
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