I-3 - Taxation Act

Section 726.7.3 Disposition versions

2017-12-07

726.7.3. (Repealed).

2009, c. 15, s. 116; 2017, c. 29, s. 103.

2009-06-04

726.7.3. In computing the taxable income of an individual (other than a trust) for the individual’s taxation year that includes 19 March 2007 (in this section referred to as the “transition year”), the individual shall deduct, if the individual was resident in Canada throughout the transition year and the individual disposed of in the transition year, and after 18 March 2007, a qualified farm property of the individual, a qualified small business corporation share of the individual or a qualified fishing property of the individual, an amount equal to the least of

(a)  $125,000;

(b)  the amount by which the individual’s cumulative gains limit at the end of the transition year exceeds the aggregate of all amounts deducted by the individual under sections 726.7 to 726.7.2 in computing the individual’s taxable income for the transition year;

(c)  the amount by which the individual’s annual gains limit for the transition year exceeds the aggregate of all amounts deducted by the individual under sections 726.7 to 726.7.2 in computing the individual’s taxable income for the transition year;

(d)  the amount that would be determined in respect of the individual for the transition year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm properties of the individual, qualified small business corporation shares of the individual and qualified fishing properties of the individual, disposed of by the individual after 18 March 2007; and

(e)  the amount that is allowed as a deduction in computing the individual’s taxable income for the transition year for the purposes of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) under subsection 2.3 of section 110.6 of that Act or, if the amount that is so allowed as a deduction is equal to the maximum amount that the individual may claim as a deduction in that computation under that subsection, the amount that the individual specifies and that is not less than that maximum amount.

Sections 21.4.6 and 21.4.7 apply, with the necessary modifications, in relation to a deduction claimed under subsection 2.3 of section 110.6 of the Income Tax Act.

2009, c. 15, s. 116.