Search - "Contribution of Property"

5 March 1991 External T.I. 9035565 F- Contribution of Property to Trust Unedited CRA Tags 107(2.1), 108(1) testamentary trust, 248(1) personal trust Dear Sirs: This is in reply to your letter of November 29, 1990 wherein you request a technical interpretation concerning a situation where 24(1) As indicated in Information Circular 70-6R2, we do not express opinions on specific proposed transactions other than as a reply to an advance income tax ruling.  ... A payment of cash to the estate to enable it to pay the liabilities will result in a contribution of property to the trust for the purpose of subparagraph 108(1)(ii) of the Act.  ...

4 June 1987 Income Tax Severed Letter 5-3073- [Request for Technical Interpretation Contribution of Property to a Partnership] XXXX M. Vallée (613) 957-8982 June 4, 1987 Dear Sir: Re: Request for Technical Interpretation Contribution of Property to a Partnership This is in reply to your letter, dated March 17, 1987 whereby you request an opinion regarding a contribution of property to a partnership in the following circumstances. ...

7 April 1991 Income Tax Severed Letter- Whether contributions of property to a partnership are subject to sales tax Unedited CRA Tags 53(1)(e)(iv) Subject: Partnership and Sales Tax A. ... In order for there to be an increase in the ACB of B's partnership interest, B would have to make a contribution of property to the partnership. ... Therefore, the payment of the liability by the partner would not be a payment of a partnership liability and would not constitute a contribution of property for the purposes of subparagraph 53(1)(e)(iv). ...

Q 10 on the T3 Return asks: "Did the trust receive any additional property by way of a contribution of property (as defined in the "Definitions" of the guide) since June 22, 2000? ... " The definition "contribution of property" in the Guide reads as follows: Contribution of property – generally refers to a transfer or loan of property, other than an arm's length transfer, to a non-resident trust including: a series of transfers or loans that results in a transfer or loan to the non-resident trust; and a transfer or loan made as a result of a transfer or loan involving the non-resident trust. ... It now states as follows: "Contribution of property – generally refers to a transfer or loan of property, other than an "arm's length transfer" (as defined in subsection 94(1)) to a non-resident trust by a person or partnership. ...

15 June 2021 STEP Roundtable Q. 12, 2021-0885671C6- Property owned jointly Unedited CRA Tags 73(1), 73(1.01), 73(1.02), 104(4) Principal Issues: Is it possible for spouses to jointly create a trust which meets the conditions set out in subparagraph 73(1.01)(c)(iii) of the Act with a contribution of property jointly-owned by the spouses? ... Joint Spousal or Common-Law Partner Trust – Contribution of Jointly-Held Property Is it possible for spouses or common-law partners to jointly create a trust which meets the conditions set out in subparagraph 73(1.01)(c)(iii) of the Act with a contribution of property jointly-owned by the spouses or common-law partners? ...

We have concluded from our review that where the income beneficiary of a trust has agreed to bear the burden with respect to the trust's taxes arising from a subsection 104(13.1) designation, the withholding of such taxes from the payment made to the beneficiary will not, in and by itself, result in a contribution of property to the trust for the purposes of subparagraph 108(1)(i)(ii) of the Act provided that the withheld amount relates to the income paid or payable to the beneficiary. ...

We have concluded from our review that where the income beneficiary of a trust has agreed to bear the burden with respect to the trust's taxes arising from a subsection 104(13.1) designation, the withholding of such taxes from the payment made to the beneficiary will not, in and by itself, result in a contribution of property to the trust for the purposes of subparagraph 108(1)(i)(ii) of the Act provided that the withheld amount relates to the income paid or payable to the beneficiary. ...

We have concluded from our review that where the income beneficiary of a trust has agreed to bear the burden with respect to the trust's taxes arising from a subsection 104(13.1) designation, the withholding of such taxes from the payment made to the beneficiary will not, in and by itself, result in a contribution of property to the trust for the purposes of subparagraph 108(1)(i)(ii) of the Act provided that the withheld amount relates to the income paid or payable to the beneficiary. ...

If the advantage remains in the RRSP, such as the earning of bonus interest in the plan or a contribution of property into the RRSP, this would not contravene the aforementioned provision. ...

A payment of cash to the estate to enable it to pay the liabilities will result in a contribution of property to the trust for the purpose of subparagraph 108(1)(ii) of the Act. ...