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.
XXXX
J.E. Grisé
July 23, 1982
XXXX
This is in reply to your letter of July 18 concerning losses allowed to a limited partner.
You describe a situation wherein a limited partner contributes to a limited partnership property that has a fair market value in excess of its adjusted cost base. The limited partner receives no cash, debt, or other consideration in respect of the property. The provisions of subsection 97(2) of the Income Tax Act are used to presumably dispose of the property for proceeds of disposition equal to its adjusted cost base.
In our view, the amount included in the limited partner's "equity" as used in paragraph 20 of IT-138R in the above situation would be the subsection 97(2) elected amount in respect of the property and not its fair market value.
Yours truly,
for Director Non-Corporate Rulings Division
97(2)
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, 1982
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, 1982
Email this Content