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.
In indicating that if the rental property is sold after the reconciliation of the couple, the capital gain will be attributed to the transferor (Monsieur), CRA stated:
[T]he property was disposed of after the resumption of the couple's life together, i.e., after November 1, 2004. Since the disposition of the property did not take place at a time when they were living separate and apart because of a breakdown in their common-law relationship … paragraph 74.5(3)(b) does not apply.