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:
Re: Partitioning of Land and Building
In your fax letter of September 24, 1991 you enclosed a copy of your letter to the Department of Finance concerning the application of subsections 248(20) & (21), as proposed in Bill C-18, in respect of a partitioning of land and buildings.
Our comments regarding the issues you raise follow:
- 1. In our view the reference to land in proposed paragraph 248(21)(c) would also refer to buildings situated on the land.
- 2. In our view the rules in proposed subsection 248(21) could apply where there is a stratification of an apartment building and a subsequent proportionate distribution of the units to the owners. Whether or not the distribution was proportionate in terms of fair market value, as required for the application of the proposed subsection, would be a question of fact.
- 3. Your recommendation to amend proposed subsection 248(21) to ensure that disproportionate distributions will be provided relief similar to that provided to proportionate distributions is a policy consideration for the Department of Finance.
We trust our comments will be of assistance to you.
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, 1991
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, 1991
Email this Content