| 19(1) | File No. 5-9630 |
| D.S. Delorey | |
| (613) 957-3495 |
March 9, 1990
Dear Madam:
Re: 19(1) the "Estate")
This is in reply to your undated letter received in this office on February 22, 1990 and further to our telephone conversation (Delorey/19(1)) on March 2, 1990.
Your particular concern is
24(1)
Our Comments
As indicated in Information Circular 70-6R, a copy of which is enclosed for your perusal, the Department does not provide written comments on specific proposed transactions other than in reply to advance ruling requests submitted in the manner set out in that Circular. We nevertheless offer the following general comments.
Enclosed is a copy of Interpretation Bulletin IT-500. As indicated in paragraph 9 thereof, where the spouse is the beneficiary of an estate and an amount is paid from an unmatured RRSP to the estate, the spouse may elect jointly with the legal representative under subsection 146(8.1) of the Act to include in the spouse's income for the year in which the payment is made that portion of the payment designated on form T2019 as a refund of premiums. As explained in paragraph 25 of IT-500, the amount that qualifies to be designated under subsection 146(8.1) as a refund of premiums is determined under paragraphs 18, 19, 22 and 24 of the bulletin.
Where the spouse makes a contribution to her RRSP in the year the deceased's RRSP made the payment to the estate, or within 60 days thereafter, a deduction is available to the spouse under paragraph 60(1) of the Act. The amount deducted cannot exceed the amount included in her income as a refund of premiums by virtue of the subsection 146(8.1) designation.
The amount included in the spouse's income by virtue of a subsection 146(8.1) election is deductible under subsection 146(8.9) of the Act from the amount included in the deceased's income under subsection 146(8.8) of the Act, provided the deceased's return for the year of death is not statute-barred. As noted above, the election under subsection 146(8.1) of the Act is made in the year that the amount is paid to the estate from the unmatured RRSP. Where this payment might be delayed beyond the three-year limit set out in subsection 152(4) of the Act for reassessing the deceased's return, a waiver in prescribed form (form T2029) should be filed to permit a reassessment beyond that limit. In this regard, we suggest you contact officials of the Toronto District Taxation Office.
The above comments are an expression of opinion only and are not binding on the Department, as explained in paragraph 24 of the enclosed Information Circular 70-6R. We trust however that they are of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate