Jul 14 1988
Specialty Rulings Directorate Glen Thornley (613)957-2101 SUBJECT: Date of Disposition of Property XXXX (the "Taxpayer")
This is in reply to your memorandum of April 25, 1988 requesting our opinion as to the date of transfer, for tax purposes, of real estate. Although attachments were indicated none were received.
The relevant facts are as follows:
XXXX
Our comments
The Department's opinion with respect to the date of transfer of property is set out generally in Interpretation Bulletins IT-50R and IT-170R .
The basic rule is that property passes or is acquired at the time when the parties involved intend it to pass as evidenced by the terms of the contract (a deed for instance), the conduct of the parties, and any other circumstances (paragraph 4 IT-50R ).
The following statement is found in paragraph 8 of IT-170R :
"Since, possession use and risk are the primary attributes of beneficial ownership, registration of legal title alone is of little significance in determining the date of disposition".
In view of the foregoing and other Statements in the two named Bulletins. we are of the opinion that that property was disposed of to XXXXXXXX That is the date when he signed the deeds transferring the real estate to them.
In this regard we have presumed that they also acquired possession, use and control at that time as your memo contains no reference to any material evidence which would indicate otherwise.
Original Signed by Wm. R. McColm
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch