70(6.2) election

Quick question, I hope. How exactly does one file a 70(6.2) election in the case where we wish to realize some gains/opt out of the rollover upon death of a spouse? Is this just in the form of a note signed by executor, and can it be submitted online via RAC?

Income Tax Folio S6-F4-C1

1.5 The deceased taxpayer’s legal representative may, however, elect under subsection 70(6.2) to have subsection 70(5), rather than subsection 70(6), apply to any capital property of the taxpayer. In these circumstances, the proceeds of disposition of the property to the deceased and its cost to the spouse, common-law partner, or spouse trust are each equal to the fair market value (FMV) of the property immediately before death. An election made under subsection 70(6.2) must be made in the deceased’s regular income tax return for the year of death. The election is made on a property-by-property basis and cannot be made on a fraction of a single property.

There is no prescribed form at present. However, the Courts have held that “electing” means taking positive steps, not just filing based on the results of an election.
You can send separate correspondence with a custom (word document) election signed by the taxpayer (the executor in this case). There is a tick box on EFILE returns to advise CRA that a separate paper election will be submitted in respect of the return.

Thank You, that is what I wanted to confirm. I had also forgotten about that tick box…

Which Tick Box are you referring to? I’m not seeing any Tick Boxes in TaxCycle T1 specifying an election will be filed. I’ve clearly missed seeing that during these last two years of using TaxCycle.

OK, I thought I knew where that box was but now cannot find it??

On the EFILE worksheet, line 9906, Election indicator, is the tick box that tells CRA that something will be arriving by mail regarding the return.


Thank You!! I had been looking on the worksheet, but that box didn’t catch my eye.