10 January 2011 External T.I. 2010-0371021E5 - Debt forgiveness - 80(9)(a) -- summary under Subsection 80(9)

Debts issued by a partnership will not be considered to be debts issued by a corporate member of that partnership, provided that there is a bona fide partnership and that the partners are jointly and severally liable for partnership debts. Consequently, a debtor is generally allowed under s. 80(9)(a) to reduce the adjusted cost base to the debtor of a capital property that is a debt issued by a partnership related to the debtor if all the conditions of subsection 80(9) are otherwise met.