Section 34

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...

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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...

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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...

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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)...

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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,...

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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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Locations of other summaries Wordcount
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...

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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

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...

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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...

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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,...

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IT-471R "Merger of Partnerships" under "Work in Progress"

IT-457R "Election by Professionals to Exclude Work in Progress from Income"

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...

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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