Interpretation Bulletin IT-413R, Election by Members of a Partnership under subsection 97(2), July 7,1989

Transferor taxpayer may itself be a partnership

3. Where the "taxpayer" referred to in subsection 97(2) that disposes of property to a partnership is itself a partnership (the first partnership), that part of the joint election required by subsection 97(2) to be made by the "taxpayer" must be made or executed by a member of that first partnership on behalf of all members of that first partnership, including the member making or executing the election and the member who makes or executes the election must have authority to act on behalf of the members of that partnership.

S. 102(2) is for greater certainty

1. Paragraph 102(b) clarifies that the rules in subdivision j (sections 96 to 103) apply to a partnership which is a member of another partnership. Although paragraph 102(b) applies after February 25, 1986 its enactment merely recognizes the Department's previous position in respect of subdivision j and does not involve a change in that position.