Mark Brohman at Durward Jones Barkwell was kind enough to send to me a reminder in the form of a technical interpretation of a very important fact about goodwill and estate planning.
In technical interpretation 9704835 (CCH Window ¶5212), the CRA points out that the Income Tax Act provides for a rollover of goodwill at cost. The deceased’s estate cannot elect out of the rollover. As a result, the exemption cannot be used to increase the cost of goodwill for which the exemption might have otherwise been available during the deceased’s lifetime (eg farm quota).
The CRA states in the technical that it has referred the matter to the Department of Finance presumably for a possible legislative amendment. I’m sure Finance will be addressing the matter Real Soon Now.™
