I-3 - Taxation Act

Section 485.44 Disposition versions

2006-03-01

485.44. For the purposes of this Part, where property is acquired at any time by an eligible transferee as consideration for entering into an agreement with a debtor that is filed under this subdivision

(a)  where the property was owned by the debtor immediately before that time,

i.  the debtor is deemed to have disposed of the property at that time for proceeds equal to the fair market value of the property at that time, and

ii.  no amount may be deducted by the debtor in computing the debtor’s income as a consequence of the transfer of the property, except any amount arising as a consequence of the application of subparagraph i;

(b)  the cost at which the property was acquired by the eligible transferee at that time is deemed to be equal to the fair market value of the property at that time; and

(c)  the eligible transferee is not required to add an amount in computing income solely because of the acquisition at that time of the property;

(d)  (paragraph repealed).

1996, c. 39, s. 142; 2000, c. 5, s. 112.