QUESTION I-100
DECEASED TAXPAYER-ELECTION UNDER SUBSECTION 70(6.2)
Subsection 70(6.2) provides that the legal representative of a deceased taxpayer may elect that the provisions of subsection 70(6) do not apply on the death of a taxpayer with respect to any property specified in the election (i.e., you can elect to have the transaction take place at fair market value rather than at tax values). This provision enables an individual to utilize capital losses, the capital gains exemption, etc. which might otherwise be lost.
If an individual has bequeathed a parcel of land with a fair market value of $100,000 and cost base of $1,000, can the legal representative elect under subsection 70(6.2) with respect to part of the property so that the capital gains exemption can be claimed?
ANSWER
As neither of subsections 70(5) or 70(6.2) refer to part of a property (subsection 70(5) refers to each property) the answer is no, the representative may not elect with respect to part of the property.
CTF November 1990 Glen Thornley section 23