Section 127.52 - Minimum amount determined

Subsection 127.52(1) - Adjusted taxable income determined

See Also

Peter W. Beare v. Minister of National Revenue, 91 DTC 411, [1991] 1 CTC 2471 (TCC)

The claim of the taxpayer for the capital gains deduction was limited to an amount which would result in a taxable income of nil. The same limitation also applied for purposes of the computation of adjusted taxable income under s. 127.52(1).

Administrative Policy

4 August 1992 T.I. (Tax Window, No. 23, p. 23, ¶2127)

Where an estate designates under s. 104(27.1) a lump-sum payment received from a DPSP as payable to the spouse of the deceased, and the spouse contributes that amount to an RRSP claiming a deduction under s. 60(j), RC will not view the amount so designated as being a single payment out of a DPSP for purposes of s. 127.52(1)(a)(ii)(B)(I).

10 May 1991 Memorandum (Tax Window, No. 3, p. 31, ¶1255)

Capital losses of other years should be deducted in computing adjusted taxable income irrespective whether they have been deducted by the taxpayer in computing his regular income for the year.

24 January 1991 Memorandum (Tax Window, Prelim. No. 3, p. 9, ¶1105)

Where a taxpayer claims the full deduction for which he is eligible, such amount will be considered to have been deducted for purposes of s. 127.52(1)(h) notwithstanding that a lesser deduction would have produced nil taxable income.

9 November 89 T.I. (April 90 Access Letter, ¶1183)

The adjustment in s. 127.52(1)(d) for the non-taxable portion of capital gains only applies to capital gains recognized pursuant to sections 38 and 41. Therefore, there is no corresponding adjustment for capital gain realized by a taxpayer pursuant to s. 14(1)(a)(v).