I-3 - Taxation Act

Section 776.57.1 Disposition versions

2006-03-01

776.57.1. For the purposes of section 776.51, the aggregate of all amounts each of which is an amount deductible under any of sections 147, 160, 163, 176, 176.4, 176.6 and 179 in computing the individual’s income for the year in respect of one of the properties described in the third paragraph, shall be established as if it were equal to the lesser of

(a)  the aggregate of all amounts otherwise so deductible; and

(b)  the amount by which the amount determined under the second paragraph is exceeded by the aggregate of all amounts each of which is an amount described in subparagraph i or ii of paragraph b of section 776.57, determined without reference to sections 147, 160, 163, 176, 176.4, 176.6 and 179.

The amount to which the first paragraph refers is equal to the aggregate of all amounts each of which is an amount deductible under any of sections 359 to 418.12, 419.1 to 419.4, 419.6, 600.1, 600.2 and 726.4.17.10 or section 88.4 of the Act respecting the application of the Taxation Act (chapter I-4), to the extent that that section refers to subsections 10 and 12 of section 29 of the Income Tax Application Rules (Revised Statutes of Canada, 1985, chapter 2, 5th Supplement) in computing the individual’s income or taxable income, as the case may be, for the year.

The properties to which the first paragraph refers are

(a)  a flow-through share, if the individual is a person to whom the share was issued in accordance with an agreement referred to in the first paragraph of section 359.1;

(b)  a Canadian resource property; and

(c)  a foreign resource property.

2000, c. 5, s. 179; 2000, c. 39, s. 96.