This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
You must work out FIF income for an interest in a FLP using either:
- the deemed rate of return method, or
- the cash surrender value method.
Choosing the taxation method
You would generally use the deemed rate of return method for your interest in a FLP. However, you may elect to use the cash surrender value method. [SUBSECTION 536(2)]
If you elect to use the cash surrender value method, you must also elect to use a notional accounting period for the FLP that coincides with the period for which the cash surrender values are available. [SECTION 487 and SUBSECTION 536(3)]
An election to apply the cash surrender value method is irrevocable. [SUBSECTIONS 487(3) and 536(5)]
Last modified: 08 Jun 2005QC 27386