The deceased taxpayer satisfied the relevant conditions for section 34(2)(8) to allow that individual to benefit from the deduction in the individual's terminal return of up to the amount of the reserve.
The legal representative had elected to deduct the amount under s. 34.2(8). Since the conditions for the application of section 34(2)(8) were satisfied (including that the individual had included an amount under s. 34.2(5) in computing the individual's income for the year from the business), the legal representative was required to file an additional return of income pursuant to s. 150(4).