Search - "Contribution of Property"
Results 21 - 30 of 111 for "Contribution of Property"
12 June 2016- 6:22pm No CRA relief from the tainting of an estate as the beneficiary of an inter vivos trust Email this Content CRA has confirmed the obvious (but harsh) point that any contribution of property by an inter vivos trust to an estate causes the estate to cease to qualify as a testamentary trust, so that it cannot qualify as a graduated rate estate. ...
News of Note post
27 June 2021- 11:23pm CRA confirms that a joint spousal (s. 73(1.01)(c)(iii)) trust can receive jointly or individually owned property from the spouses Email this Content CRA confirmed that it is possible for spouses (or common-law partners), both of them over 65, to jointly create a trust which meets the s. 73(1.01)(c)(iii) conditions with a contribution of property jointly-owned by them; and that it is possible for one or both of them to make subsequent contributions to the trust on a s. 73(1) rollover basis with property that is owned jointly by them, and other property that is owned individually. ...
16 July 2014- 9:10am CRA considers that Canadian administration of an estate will taint a non-resident inter vivos trust beneficiary under s. 94(3) Email this Content CRA has published an interpretation, which is similar to a response at the 2014 STEP Roundtable, that where the only beneficiary of an estate which is administered by a Canadian executor is a non-resident trust with no Canadian beneficiaries or trustees, that trust will be tainted as a s. 94 trust both on the basis that it received a contribution of property from a resident trust (the estate), and under s. 94(2)(n) (deeming the deceased to have been a contributor to it). ...
11 September 2013- 10:02am There’s no requirement to file an amended s. 85(1) election if you breach the PUC limit in s. 85(2.1) Email this Content The Rulings Directorate has confirmed that, where shares were issued by a Canadian corporation to its shareholders including a non-resident corporation on a contribution of property for which a s. 85(1) election was filed, there was an automatic downward adjustment under s. 85(2.1) to the paid-up capital of such shares if their stated capital exceeded the limit in s. 85(2.1). ...
15 June 2021 STEP Roundtable - Official Response
Miscellaneous correspondence
Q.12- 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? ...
CRA accepts that public trading in the shares of a dividend recipient is not part of the same series
In what hopefully is a trite point, CRA also ruled that s. 97(2) applied to a contribution of property to a partnership (i.e., no equity consideration was given by the partnership). ...
News of Note post
CRA stated: [A]lthough the cash used to fund Spouse A’s initial share investment … was stated to be from cash that came from a joint account … the legal form of these transactions strongly suggests that Spouse B has not made any direct or indirect contribution of property to Opco. … [T]aking an overly broad interpretation that a specified individual has made an indirect financial contribution to a business such that the reasonable return exception in subparagraph (g)(ii) of the definition of excluded amount would apply to prevent the amount from being split income would appear to frustrate the underlying tax policy of the TOSI rules. ...
Commentary
Subsection 90(3) - Commentary
In a number of rulings given respecting the conversion of regular Delaware or California corporations to LLCs (for example 2004-0065921R3 respecting the conversion of "USco 2" to "LLC2"), the description of the "shares" of the new LLC included a description of its capital: "Capital" of Shares is the aggregate of all amounts paid to LLC 2 and the monetary value at the time of contribution of property contributed to LLC 2 (in each case including amounts paid or contributed prior to USco 2's conversion to LLC 2) in consideration for the issuance of Shares together with any amounts added thereto by the Board of Managers or the Stockholders in accordance with the provisions of the LLC 2 Agreement, less the aggregate of all amounts by which such capital has been reduced by the Stockholders or the Board of Managers in accordance with the LLC 2 Agreement. ...
15 June 2021 STEP Roundtable
Roundtable notes
Official Response 15 June 2021 STEP Roundtable Q. 11, 2021-0883221C6- excess TFSA amount Q.12- Contribution of co-owned property to joint spousal trust 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? ...
Article Summary
Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Classification of Trusts for Income Tax Purposes", Chapter 2 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016. -- summary under Paragraph 73(1.01)(c)
However, the CRA has expressed the position that a trust may qualify as a joint spousal trust when both spouses create the trust by the joint contribution of property, and either or both spouses subsequently transfer property to the trust. ...