| 24(1) | 5-902013 |
| D.S. Delorey | |
| (613) 957-3495 | |
| 19(1) |
October 30, 1990
Dear Sirs:
Re: Family Law Act (Ontario)
This is in reply to your letter of August 20, 1990 concerning the Family Law Act (Ontario) and the "spousal rollover" available under subsection 70(6) of the Income Tax Act (the "Act").
Where a court orders that the capital property of a deceased taxpayer is to be transferred to the surviving spouse absolutely in satisfaction of the latter's equalization claim under the Family Law Act, it is the position of the Department that the provisions of subsection 70(6) of the Act will apply to the transfer provided the property becomes vested indefeasibly in the spouse within the time set out in that subsection. The Department's position in this regard is set out in paragraph 7 of Interpretation Bulletin IT-449R.
We trust that our comments are of assistance.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate