I-3 - Taxation Act

Section 280.6 Disposition versions

2011-06-06

280.6. Subject to the second paragraph, where an individual makes a qualifying disposition in a taxation year, the following rules apply:

(a)  the individual’s capital gain for the year from the qualifying disposition is deemed to be equal to the amount by which the individual’s capital gain for the year from the qualifying disposition, determined without reference to this division, exceeds the individual’s permitted deferral in respect of the qualifying disposition;

(b)  in computing the adjusted cost base to the individual of a replacement share of the individual in respect of the qualifying disposition at any time after its acquisition, there shall be deducted the amount of the adjusted cost base reduction of the individual in respect of the replacement share; and

(c)  where the qualifying disposition was a disposition of a share that was a taxable Canadian property of the individual, the replacement share of the individual in respect of the qualifying disposition is deemed to be, at any time that is within 60 months after the disposition, a taxable Canadian property of the individual.

For the purposes of the first paragraph, the individual shall enclose with the fiscal return the individual is required to file for the year under section 1000, the prescribed form along with a copy of every document sent to the Minister of National Revenue attesting the share was designated by the individual in the fiscal return the individual files for the year under Part I of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), pursuant to paragraph b of the definition of “replacement share” in subsection 1 of section 44.1 of that Act.

2003, c. 2, s. 99; 2011, c. 6, s. 124.

2006-03-01

280.6. Subject to the second paragraph, where an individual makes a qualifying disposition in a taxation year, the following rules apply:

(a)  the individual’s capital gain for the year from the qualifying disposition is deemed to be equal to the amount by which the individual’s capital gain for the year from the qualifying disposition, determined without reference to this division, exceeds the individual’s permitted deferral in respect of the qualifying disposition;

(b)  in computing the adjusted cost base to the individual of a replacement share of the individual in respect of the qualifying disposition at any time after its acquisition, there shall be deducted the amount of the adjusted cost base reduction of the individual in respect of the replacement share; and

(c)  where the qualifying disposition was a disposition of a share that was a taxable Canadian property of the individual, the replacement share of the individual in respect of the qualifying disposition is deemed to be taxable Canadian property of the individual.

For the purposes of the first paragraph, the individual shall enclose with the fiscal return the individual is required to file for the year under section 1000, the prescribed form along with a copy of every document sent to the Minister of National Revenue attesting the share was designated by the individual in the fiscal return the individual files for the year under Part I of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), pursuant to paragraph b of the definition of “replacement share” in subsection 1 of section 44.1 of that Act.

2003, c. 2, s. 99.