11 April 2005 External T.I. 2004-0091721E5 F - Usufruit d'un bien immeuble situé en France -- summary under Paragraph 248(3)(a)

A resident of Canada gifted to his daughter, also resident in Canada, the bare ownership of an income property located in France, while retaining the usufruct of the property. CRA noted that the daughter would receive the net rental income as the income beneficiary of a deemed trust under s. 248(3) (so that such income was deemed to be income from property under s. 108(5)(a)) – except that when the usufruct was extinguished, there would be a dissolution of the deemed trust to which s. 107(2) would apply, so that thereafter the bare owner would become subject to tax on the rental income.