Common-law partners (Monsieur and Madame) had a child of their union, and then lived separate and apart starting on April 15, 2004 (with Monsieur then transferring a rental property to Madame), and then resumed cohabiting on November 1, 2004.
CRA indicated that the income from the rental property will be attributed after their reconciliation to the transferor (Monsieur), stating:
[T]hey ceased to cohabit on April 15, 2004 ("that time" in the definition of "common-law partner"), ending their common-law relationship on that date. …
[I]n the absence of [s. 74.5(3)(a)], the income from the rental property attributable to the period between April 15, 2004 and November 1, 2004 would have been attributed to Monsieur. The effect of this provision is that the income from the building for the period is included in Madame’s income for the year.
[I]f there had been a resumption of their common life within the 90-day period, there would never have been a break down in the common-law partnership and the attribution rules would still have applied during the period in question (from April 15, to November 1, 2004).
… [T]he income from the rental property attributable to the period after November 1, 2004 will … be attributed to Monsieur.