Greg A. Leslie, “Trusts — Be Mindful of Allocating Deemed Income!”, Tax Hyperion 13:11 (November 2016) summarizes CRA technical interpretation 2015-0604971E5 (October 19, 2016). How does a trust allocate a deemed gain under s 48.1 of the Income Tax Act (Canada)? The CRA believes that a deemed gain is a “nothing” so that it cannot be defined as income or a capital gain for trust purposes. The CRA believes that an amount can be payable under s 104(24) if the trust deed specifically permits an amount equal to the deemed gain to be made payable or the trustees have the discretion to pay out amounts that are defined as income under the Act. The CRA also believes that the trustees must exercise their discretion to make an amount payable via a resolution.