The CRA confirmed that or purposes of the farming-use condition in clause 110.6(1.3)(a)(ii)(A), the person or individual that meets this condition need not be the person who owns the property at the determination time or in the 24 months immediately…
Subsection 110.6(8) issues
Subection 110.6(8) does not apply if dividends are not paid on “prescribed shares”. An ordinary common share is a prescribed shares under Reg 6205(1). A “freeze share” is prescribed if it meets the requirements of Reg 6205(2). The authors note…
104(21) and 104(21.2) Interaction
Suppose a trust has gains that can be sheltered with the capital gain exemption and gains that cannot. In that case, it will be impossible to allocate all of the eligible gains to one beneficiary because of the formula in…
Trusts and the exemption holding period test
The authors use some examples to illustrate the application of the deeming rules in subparagraph 110.6(14)(c) that apply to trusts. Example 1 Mr X incorporates Opco in 2015. He settles a family for himself and his family on February 23,…
QSBCS gains flow through tiered trusts
taxinterpretations.com notes that the CRA, in technical interpretation 2019-0818301I7F (August 13, 2020), has now accepted that a gain realized on the sale of QSBCSs for which an individual could claim the capital gain exemption can be flowed through two levels…