I-3 - Taxation Act

Section 737.18.28 Disposition versions

2010-10-27

737.18.28. (Repealed).

2003, c. 9, s. 57; 2010, c. 25, s. 70.

2006-03-01

737.18.28. In computing an eligible individual’s taxable income for a taxation year, there may be deducted an amount for the year equal to the least of

(a)  the amount determined by the formula

(A − B) × C / 365;

(b)  $200,000; and

(c)  the amount by which $600,000 exceeds the aggregate of all amounts each of which is an amount deducted by the eligible individual under this section for a preceding taxation year.

In the formula provided for in subparagraph a of the first paragraph,

(a)  A is the aggregate of all amounts each of which is equal to the eligible individual’s income for the taxation year from the eligible activities of the eligible individual;

(b)  B is the aggregate of all amounts each of which is equal to the eligible individual’s loss for the taxation year from the eligible activities of the eligible individual; and

(c)  C is the number of days in the taxation year that are in the eligibility period applicable to the eligible activities of the eligible individual.

Where the number of days in a taxation year of the portion of the eligibility period applicable to eligible activities of an eligible individual is less than 365, the amount of $200,000 mentioned in subparagraph b of the first paragraph shall be replaced by the product obtained by multiplying $200,000 by the proportion that that number is of 365.

An amount deductible under the first paragraph in computing an eligible individual’s taxable income for a taxation year shall not be deducted unless the following documents are enclosed with the fiscal return the eligible individual is required to file for the year under section 1000:

(a)  a copy of the qualification certificate referred to in the definition of “eligible individual” in the first paragraph of section 737.18.27; and

(b)  a financial statement relating to the eligible activities of the eligible individual for the taxation year.

2003, c. 9, s. 57.