11 August 1989 Income Tax Severed Letter ACC8388 - Adverse Decision - Estate of The Late Henry E. Reed

By services, 22 July, 2022
Official title
Adverse Decision - Estate of The Late Henry E. Reed
Language
English
Document number
Citation name
ACC8388
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657390
Extra import data
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"field_release_date_new": "1989-08-11 08:00:00",
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Main text

E. Noel de Tilly Director Appeals and Referral Division Technical Interpretations

Re: ADVERSE DECISION-ESTATE OF THE LATE HENRY E. REED

In his decision of July 27, Judge Mogan decided that a principle residence was a capital property under paragraph 54(b) notwithstanding paragraph 40(2)(b). This appears to us to be the correct result. It appears to be quite consistent with the application of the optional method given to farmers under subparagraph 40(2)(c)(ii) for computing the principal residence exemption.

The reason why the dispute went to Court is not spelled out in
the Reasons for Judgment, but we would surmise that the taxpayer
wanted the section 80 "grind" to apply to the deceased's principal
residence rather than the depreciable property or the
"agricultural land".        21(1)(b)
      21(1)(a)

A.G. Cockell Director Technical Interpretation Division Legislative and Intergovernmental Affairs Branch