I-3 - Taxation Act

Section 231.2.1 Disposition versions

2009-06-04

231.2.1. A taxpayer’s taxable capital gain for a taxation year, from the disposition of an interest in a partnership (other than a prescribed interest) that would be an exchange described in paragraph d of section 231.2 if the interest were a share in the capital stock of a corporation, is equal to the lesser of

(a)  that taxable capital gain determined without reference to this section; and

(b)  the amount determined by the formula

(A - B)/2.

In the formula in subparagraph b of the first paragraph,

(a)  A is the aggregate of the cost to the taxpayer of the partnership interest and of each amount required by subparagraph iv or x of paragraph i of section 255 to be added in computing the adjusted cost base to the taxpayer of the partnership interest;

(b)  B is the adjusted cost base to the taxpayer of the partnership interest determined without reference to subparagraphs iv and v of paragraph l of section 257.

2009, c. 15, s. 64.