I-3 - Taxation Act

Section 104.5 Disposition versions

2006-03-01

104.5. A partnership shall include in computing the partnership’s income from a business for a fiscal period, in this section referred to as the “particular period”, the amount referred to in the second paragraph, if

(a)  an amount was deducted, in respect of depreciable property of a prescribed class, in computing the partnership’s income from a business for a preceding fiscal period under section 156.5.1; and

(b)  an amount in respect of the depreciable property, in this section referred to as the “particular amount”, that is an amount of assistance described in section 101 or an amount that is deemed to be such an amount of assistance because of the application of section 101.3 or 101.4, is taken into account for the first time for the purpose of determining, at any time in the particular period, the capital cost to the partnership of the property or the undepreciated capital cost of the partnership’s property of that class.

The amount to which the first paragraph refers that the partnership is required to include in computing its income for the particular period is equal to 25% of the amount determined by the formula

A × B / C.

In the formula provided for in the second paragraph,

(a)  A is the lesser of

i.  the aggregate of all amounts each of which is, for the partnership, a particular amount in respect of the depreciable property for the particular period, and

ii.  the amount included in computing the partnership’s income for the particular period under section 94 in respect of the depreciable property;

(b)  B is the aggregate of the business carried on in Canada or in Québec and elsewhere by the partnership in the particular period; and

(c)  C is the business carried on in Québec by the partnership in the particular period.

2000, c. 39, s. 11.