Income Tax Act — I-3.3 146
te that tax-paid amount under subsection 146(8.1) if tax-paid amounts were not excluded in determining refunds of premiums; B is the fair market value of the property of the plan at the particular time that is the later of (a) the end of the first calendar year that begins after the death of the annuitant, and (b) the time immediately after the last time that any refund of premiums in respect of the plan is paid out of or under the plan; C is the total of all amounts paid out of or under the plan after the death of the annuitant and before the particular time; and D is the lesser of (a) the fair market value of the property of the plan at the time of the annuitant’s death, and (b) the sum of the values of B and C in respect of the plan. Amounts deemed receivable by spouse or common-law partner (8.91) Where, as a consequence of the death of an annuitant after the maturity of the annuitant’s registered retirement savings plan, the annuitant’s legal representative has become entitled to receive amounts out of or under the plan for the benefit of the spouse or common-law partner of the deceased and the legal representative and the spouse or common-law partner file with the Minister a joint election in prescribed form, (a) the spouse or common-law partner shall be deemed to have become the annuitant under the plan as a consequence of the annuitant’s death; and (b) those amounts shall be deemed to be receivable by the spouse or common-law partner and, when paid, to be received by the spouse or common-law partner as a benefit under the plan, and not to be received by any other person. Deduction for post-death reduction in value (8.92) If the annuitant under a registered retirement savings plan dies before the maturity of the plan, there may be deducted in computing the annuitant’s income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable out of or under the plan have been paid, by the formula A – B where A is the total of all amounts each of which is (a) the amount deemed by subsection (8.8) to have been received by the annuitant as a benefit out of or under the plan, (b) an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer as a benefit out of or under the plan and included, because of subsection (8), in computing the taxpayer’s income, or (c) a tax-paid amount in respect of the plan; and B is the total of all amounts paid out of or under the plan after the death of the annuitant. Subsection (8.92) not applicable (8.93) Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (8.92) in respect of a registered retirement savings plan, that subsection does not apply if (a) at any time after the death of the annuitant, a trust governed by the plan held a non-qualified investment; or (b) the last payment out of or under the plan was made after the end of the year following the year in which the annuitant died. Where disposition of property by trust (9) Where in a taxation year a trust governed by a registered retirement savings plan (a) disposes of property for a consideration less than the fair market value of the property at the time of the disposition, or for no consideration, or (b) acquires property for a consideration greater than the fair market value of the property at the time of the acquisition, the difference between the fair market value and the consideration, if any, shall be included in computing the income for the taxation year of the annuitant under the plan. Property used as security for loan (10) If at any time in a taxation year a trust governed by a registered retirement savings plan uses or permits to be used any property of the trust as security for a loan, the fair market value of the property at the time it commenced to be so used shall be included in computing the income for the y