Subsection 105(1) - Benefits under trust
Cases
Cooper v. The Queen, 88 DTC 6525, [1989] 1 CTC 66 (FCTD)
The taxpayer, who was a residuary beneficiary and executor of his mother's estate, was held not to have received a benefit by virtue of an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Illegality | income tax consequences attaching to illegal loan | 75 |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | interest-free loan | 69 |
See Also
Stevenson v. Wishart, [1987] BTC 283 (CA)
Substantial but regular payments of capital of a trust to pay the nursing-home expenses of the beneficiary were not income in her hands. "If, in...
Administrative Policy
16 June 2014 STEP Roundtable, 2014-0523061C6 - Trust audit issues
In the course of commenting on common audit issues for trusts, CRA stated:
In one audit that we dealt with, the taxpayer had been the sole...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(21) | capital gain distributed to different beneficiary | 137 |
| Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.2) | taxpayer stuck with two-transaction form | 155 |
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | executors lacked power to make gift | 92 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | legal and accounting expenses | 45 |
| Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) | settlor taking back undervalued freeze shares | 76 |
10 July 2013 Internal T.I. 2013-0475501I7 F - Amounts returned to trustee/beneficiary
Father and Y were the trustees of a Quebec family trust, whose beneficiaries included father and his three children. Distributions made by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) | distributions to children immediately paid to father | 174 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) | distributions to children immediately paid to father | 174 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(6) | distributions to children immediately paid to father | 172 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | distributions to children immediately paid to father | 114 |
6 August 2013 External T.I. 2012-0469481E5 F - Benefit under trust
An estate sold personal-use real estate to one of its beneficiaries for a price less than the property's fair market value, so that s. 69(1)(b)(i)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 52 - Subsection 52(1) | Estate sale to beneficiary at under-value | 133 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) | taxable benefit added to acb | 133 |
12 December 2012 Internal T.I. 2012-0464411I7 - Indirect Benefit
A taxable Canadian corporation (Holdco) which is wholly-owned by a trust of which Mr. A is the sole trustee and is a discretionary beneficiary,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) | fee re distribution borrowing | 159 |
| Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) | 297 |
4 December 2012 External T.I. 2012-0470951E5 F - Technical News no. 11
The questioner noted that ITTN No. 11 had been archived, and obtained CRA's confirmation (per the summary) that:
It is still the CRA's position...
1999 Ruling 9911853 [DRIP produces taxable benefit]
Proposed transactions
The trustees of a listed REIT will implement a distribution reinvestment plan (the "Plan") under which Canadian-resident...
Income Tax Technical News, No. 11, September 30, 1997: "Taxable Benefit for Use of Personal-Use Property"
26 August 1997 Memorandum 970731
A beneficiary generally will not be assessed a taxable benefit for her rent-free use of personal-use property owned by the trust.
9 January 1997 T.I. 963753
S.105(1) does not apply to a distribution of property to which s. 107(2) is applicable.
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|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2) | 16 |
31 March 1993 T.I. (Tax Window, No. 29, p. 23, ¶2459)
The favourable administrative position applying to personal-use property of an individual that is held by a trust will also apply where a house is...
19 June 1992 Interpretation 9218430 (January - February 1993 Access Letter, p. 25, ¶C104-038)
RC is not prepared to extend the decision in Cooper to benefits arising otherwise than in respect of an interest-free loan emanating from a...
91 C.R. - Q10
RC will apply the Cooper decision in similar situations.
90 C.R. - Q24
An interest-free loan made by a trust to a beneficiary does not result in a taxable benefit. S.105(1) is not restricted to non-arm's length...
89 C.R. - Q31
The use of a trust's real property by a beneficiary constitutes a benefit. However, in the case of property that would be personal use property of...
88 C.R. - Q69
Where property such as a cottage is held on trust for the use of individuals, RC generally will not seek to assess a benefit where the trust is...
87 C.R. - Q82
S.105(1) benefits should be reported on a T3 supplementary. Appropriate methods should be used to value a benefit.
85 C.R. - Q27
Where an income beneficiary (i.e., a beneficiary with no right to enforce any payment of the capital) receives an interest-free loan. RC will...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 12 |
80 C.R. - Q45
S.105 will be applicable in most cases to a non-interest bearing loan made by an estate or trust to a beneficiary.