Section 98.2 — Income Tax Act: Transfer of interest on death

Where by virtue of the death of an individual a taxpayer has acquired a property that was an interest in a partnership to which, immediately before the individual’s death, section 98.1 applied, the taxpayer shall be deemed to have acquired a right to receive partnership property and not to have acquired an interest in a partnership; the taxpayer shall be deemed to have acquired the right referred to in paragraph 98.2(a) at a cost equal to the amount determined to be the proceeds of disposition of the interest in the partnership to the deceased individual by virtue of paragraph 70(5)(a) or (6)(d), as the case may be; and section 43 is not applicable to the right.