10 October 2014 APFF Roundtable, 2014-0538241C6 F - 75(2) and definition of "earned income" in 146(1) -- summary under Earned Income

When a rental property has been transferred to a trust, is rental income attributed to the transferor under s. 75(2) transformed into trust property income under s. 108(5), so that the "earned income" of the transferor will not be increased for "RRSP deduction limit" purposes? CRA responded (TaxInterpretations translation):

Subsection 108(5) does not have the effect of modifying the application of subsection 75(2)… . [T]he net rental income…preserves its character and the person who had transferred the property must include this income…in his or her return of income … . For purposes of the calculation of the "RRSP deduction limit" of the person subject to subsection 75(2) …the income from the rental property…is included in his or her "earned income"… .

Topics and taglines
Topic
Income Tax Act - s. 146(1) - Earned Income
Tagline
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
312919
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
342387
Extra import data
{
"field_editor_tags": [],
"field_roundtable_subquestion": "5",
"field_stub": false,
"field_legacy_header": "<a id=\"2014-0538241C6\"></a><a href=\"/?p=32643\">10 October 2014 APFF Roundtable, Q. 5, 2014-0538241C6 F</a> [character preservation of s. 75(2) attributed income]"
}
Workflow properties
Workflow state
Publish with parent