19 October 2006 Internal T.I. 2006-0173261I7 F - Avantage conféré par une fiducie -- summary under Subsection 105(2)

A non-income producing property of a trust, such as a cottage or boat, is used by a beneficiary, a person related to a beneficiary or by a person unrelated to the beneficiary (Mr. X). The Directorate indicated that s. 105(2) would not apply respecting the payment by the trust of upkeep, maintenance or taxes of or in respect of the trust property since the trust did not have any income. Furthermore, if there were income, so that Mr. X was required to include a benefit under s. 105(2), s. 104(6)(b) would provide a corresponding deduction.