See Also
Brock v. MNR, 91 DTC 1079, [1991] 2 CTC 2121 (TCC)
Lamarre Proulx J. rejected a submission that under the laws of Ontario interim accounts rendered by a solicitor are not enforceable and, in any...
Administrative Policy
26 March 2018 External T.I. 2017-0734381E5 F - Election paragraph 34(a)
A professional partnership (Partnership) with a calendar taxation year end makes the s. 34 election for the 2017 year. If a partner transfer’s...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(14.1) | transitional rule applies to assignee partner | 70 |
28 May 2014 External T.I. 2014-0531461E5 - Paralegals and work in progress election
[T]he province of Ontario and the Law Society of Upper Canada have created a two tiered system: the practice of law by barristers and solicitors...
15 October 2013 Internal T.I. 2013-0491951I7 F - Travaux en cours au moment du retrait d'un associé
On June 30 of Year 1, individual partners of a Canadian professional partnership who have made the s. 34 election in accordance with s. 96(3)...
13 August 2013 External T.I. 2012-0471401E5 F - FMV - partnership interest
CRA indicated that in determining the FMV of an interest in a professional partnership that had been transferred on a s. 85(1) rollover basis,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Other | deferred tax liability re deferred (s. 34) partnership income recognition reduces partnership interest FMV | 236 |
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(c) | FMV of professional partnership interest would normally discount the value of s. 34-elected WIP for income taxes | 135 |
5 January 2009 External T.I. 2008-0294011E5 F - Choix d'exclure les travaux en cours
A newly incorporated corporation at the end of its first year of operating a professional business, had work in progress ("WIP") with a billable...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(4) - Paragraph 10(4)(a) | a services business generally values its WIP based on its hourly rates | 186 |
24 June 2005 External T.I. 2004-0109201E5 F - Professions libérales - Travaux en cours
Can a partnership make the s. 34 election where it carries on a single business but earns income from two types of activities, one of which is not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | income from a professional practice includes income from a secondary non-professional activity if the practice is a single business | 124 |
18 May 2004 External T.I. 2004-0069691E5 F - Incorporation des professionnels
Can a corporation with accountant shareholders use the s. 34 election where it is carrying on an insolvency practice? CRA responded:
[A]...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(b) | WIP subject to s. 34 election is tranferred at nil | 149 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(a) - Subparagraph 40(2)(a)(ii) | only s. 40(2)(a)(ii)(A), not (B) or (C), is potentially engaged where transferor is individual | 125 |
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(2) | s. 249.1(2) not engaged by virtue only of no income being allocated to the partner | 236 |
25 August 1992 T.I. 921739 (April 1993 Access Letter, p. 136, ¶C20-1143; Tax Window, No. 23, p. 17, ¶2139)
The s. 34 election is not available to a taxpayer who carries on an insolvency practice as his primary practice, rather than as an incidental part...
20 September 1991 T.I. (Tax Window, No. 9, p. 22, ¶1464)
No s. 34 election is available for the business of a patent agency even if the business is carried on by a partnership of which a lawyer is a...
19 September 89 T.I. (February 1990 Access Letter, ¶1104)
The total cost of professional labour including employee benefits will be work in progress, but fixed or indirect overhead costs such as rental,...
IT-471R "Merger of Partnerships" under "Work in Progress"
IT-457R "Election by Professionals to Exclude Work in Progress from Income"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) | 0 | |
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(2) | 0 | |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(2) | 62 |
Articles
Joint Committee, "Proposed Amendments to Taxation of Work in Progress ("WIP") for Professionals", Letter of 31 May 2017
A longer transitional period than two years may be warranted respecting the phasing out of the deferral under s. 34 given that many of the primary...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(5) - Paragraph 10(5)(a) | professional firms may only be required to recognize the payroll costs (not the dockets) of salaried professional staff and not partners’ time in their WIP | 195 |