I-3 - Taxation Act

Section 726.9.4 Disposition versions

2006-03-01

726.9.4. Where an elector is deemed by section 726.9.2 to have disposed of a non-qualifying immovable property,

(a)  in computing the elector’s taxable capital gain from the disposition, there shall be deducted an amount equal to 3/4 of the amount by which the elector’s capital gain from the disposition exceeds the elector’s eligible immovable property gain from the disposition; and

(b)  in determining at any time after the disposition the capital cost to the elector of the property, where it is a depreciable property, and the adjusted cost base to the elector of the property in any other case, other than where the property was at the end of 22 February 1994 an interest in or a share of the capital stock of a flow-through entity within the meaning assigned by the first paragraph of section 251.1, there shall be deducted 4/3 of the amount determined under paragraph a in respect of the property.

1996, c. 39, s. 186.