| 921341 | |
| 19(1) | Glen Thornley |
| (613) 957-2101 |
May 29, 1992
Sudbury Taxation CentreBusiness and General DivisionProblem Resolution Section
Attention: Susan Charron
This is in reply to your Round Trip Memorandum of April 23, 1992 concerning the above noted taxpayer and his claim for an adjustment to his Cumulative Net Investment Loss ("CNIL").
As the interest income portion of 19(1) annuities qualify under the heading "Any other property income reported .." under Part 2 CUMULATIVE INVESTMENT INCOME on form T936 it will be in order to allow his claim, assuming of course, that 19(1) calculations are supportable and correct. He should be able to obtain the needed information from the trust company holding his investments.
Our decision in this matter is based solely on the facts of this case and as discussed in our telephone conversation of May 27, 1992 (Thornley/Charron) it is not to be extended to other similar situations unless the facts are identical. With respect to 19(1) question regarding mortgage interest inputs that he raises in his letter of April 8, 1992 (apparently a follow-up letter to that which precipitated your memorandum), advise him that it would be improper to use all of the yearly income arising from the mortgage proceeds. It will be necessary to prorate the amounts along the lines that he suggests, that is, take into account only that portion of the income that total interest input bears to all of his inputs. As indicated above 19(1) should be able to obtain this type of information from his trust company or broker.
E. Wheelerfor DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch