I-3 - Taxation Act

Section 851.22.8 Disposition versions

2006-03-01

851.22.8. The amount required to be deducted in computing the tax basis of a specified debt obligation at a particular time to a taxpayer is the aggregate of all amounts each of which is

(a)  an amount deducted under paragraph b of section 851.22.4 in respect of the obligation in computing the taxpayer’s income for a taxation year beginning before the particular time;

(b)  the amount of a payment received by the taxpayer under the obligation at or before the particular time, other than a fee or similar payment and the proceeds of disposition of the obligation;

(c)  subject to section 838, where the taxpayer acquired the obligation in a taxation year ending before 23 February 1994, the part of the amount that was deducted in computing the taxpayer’s income for a taxation year ending before 23 February 1994 by which the cost to the taxpayer of the obligation exceeds the principal amount of the obligation at the time it was acquired;

(d)  subject to section 838, where the taxpayer is a life insurer, an amount in respect of the obligation that was deemed by paragraph b of section 830, as it read, before its repeal, in its application to the taxation year 1977, to be a loss for a taxation year ending before 1 January 1978;

(e)  an amount that was deducted under section 167 in respect of the obligation in computing the taxpayer’s income for a taxation year beginning before the particular time;

(f)  where the obligation is an indexed debt obligation, an amount determined under paragraph b of section 125.0.1 in respect of the obligation and deducted in computing the taxpayer’s income for a taxation year beginning before the particular time;

(g)  an amount in respect of the obligation that was deducted in computing the taxpayer’s income for a taxation year ending at or before the particular time in respect of changes in the value of the obligation attributable to the fluctuation in the value of a foreign currency relative to Canadian currency, other than an amount deducted under paragraph b of section 851.22.4;

(h)  an amount in respect of the obligation that was deducted under section 141 in computing the taxpayer’s income for a taxation year ending at or before the particular time; or

(i)  where the obligation was a capital property of the taxpayer on 22 February 1994, an amount required by paragraph b or f.3 of section 257 to be deducted in computing the adjusted cost base of the obligation to the taxpayer on that day.

1996, c. 39, s. 235; 2001, c. 7, s. 123.