Is a sum of money in a foreign currency, on deposit by an individual at a financial institution, a “capital property” and subject to s. 39(1) in the absence of s. 39(1.1) applying? Would s. 70(5) apply on the death of the individual, or would a rollover under s. 73(1) or 70(6) be available? CRA responded:
[S]ubsection 39(1.1) would not apply since the individual does not own property that is a foreign currency but, rather, has a claim. Indeed, the relationship between a financial institution and its client, who has entrusted the client’s money to the institution, is usually the ordinary relationship that exists between debtor and a creditor. ubsection 39(1.1) would not apply since the individual does not own property that is a foreign currency but, rather, has a claim. Indeed, the relationship between a financial institution and its client, to which an individual entrusts his or her money, is usually the ordinary relationship of debtor and a creditor. …
If the debt is a capital property, subsections 70(5), 70(6) and 73(1) could apply where all the conditions set out in those subsections are met.