Where a partnership (the "Partnership") with a calendar year end, but whose corporate partners (the "Partners") have March 31 taxation year ends, disposed of eligible capital property in November 2016, must those partners make the s. 13(38)(d)(iii) election in order for the eligible capital property regime (the "Old Regime"), rather than the new Class 14.1 property regime (the "New Regime"), to apply to the gain? CRA responded:
The rules of the Old Regime with respect to the disposition of eligible capital property, as well as of subsection 13(38), which adds transitional provisions because of the introduction of the New Regime, are statutory provisions for the computation of income. Consequently, in accordance with paragraph 96(1)(a), these provisions apply, as appropriate, at the level of the partnership as if it were a separate person resident in Canada. Thus, the Partnership would be considered to be the taxpayer for the purposes of paragraph 13(38)(d). Given that the Partnership’s taxation year would end on December 31, 2016, paragraph 13(38)(d) would not apply and the Partnership would not have to make an election under subparagraph 13(38)(d)(iii).
…[A] Partner could not make an election under subparagraph 13(38)(d)(iii) in respect of a disposition by the Partnership.