Can a capital interest in a personal trust qualify as eligible property? After noting that eligible property in s. 85(1.1) includes most capital property, capital property in s. 54(1) includes any non-depreciable property a gain from which would be a capital gain, and further noting that s. 107(1)(a) contemplates that the disposition of a capital interest in a personal trust could give rise to a capital gain, CRA stated:
[T]he capital interest in a personal trust will qualify as "eligible property" pursuant to subsection 85(1.1) and for the purposes of subsection 85(1), provided it is a capital property of the taxpayer.