The taxpayer, a painter, never filed a letter indicating that he wished to make the s. 10(6) election, but when he annually filed his T2124 form, he showed the value of his inventory as nil. In indicating that this was an acceptable election, CRA stated:
The CRA would accept, as an election made pursuant to subsection 10(6), a taxpayer reporting the number zero under the item "closing inventory" on the T2124 filed with the taxpayer's income tax returns.