I-3 - Taxation Act

Section 346.1 Disposition versions

2006-03-01

346.1. There may be deducted in computing the income for a taxation year of an individual, other than a trust, resident in Canada throughout the year such amount as the individual claims not exceeding the amount determined by the formula

A + B − 0.2 (C − $40,000).

For the purposes of the formula in the first paragraph,

(a)  A is the amount by which the aggregate of all amounts each of which is an amount that, because of the application of sections 485 to 485.18 to an obligation payable by the individual, or a partnership of which the individual was a member, was included under section 485.13 in computing the income of the individual for the year or the income of the partnership for a fiscal period that ends in the year, to the extent that, where the amount was included in computing income of a partnership, it relates to the individual’s share of that income, exceeds the aggregate of all amounts deducted because of paragraph a of section 485.15 in computing the individual’s income for the year;

(b)  B is the amount included under section 313.7 in computing the individual’s income for the year; and

(c)  C is the greater of $40,000 and the individual’s income for the year, determined without reference to this section, section 313.7, paragraph j of section 336, section 485.13 and paragraph a of section 485.15.

1996, c. 39, s. 106; 1997, c. 3, s. 71; 1998, c. 16, s. 251.