Where the value of the inventory of an artist’s business was deemed to be nil pursuant to s. 10(6), and s. 70(3) applied to the transfer of a right or thing to a beneficiary of an estate or trust, can s. 70(3) apply again upon the death of that beneficiary? CRA responded:
[F]or the property transferred to a beneficiary or beneficiaries to be rights or things pursuant to subsections 70(2) and (3), the election under subsection 10(6) must be made by the beneficiary or beneficiaries. In order for that election to be made, the property must be property in the inventory of the beneficiary or beneficiaries and, furthermore, property in the inventory of an artistic business of the beneficiary or beneficiaries. ... .[T]hose conditions will generally not be satisfied.