I-3 - Taxation Act

Section 1055.1 Disposition versions

2017-02-08

1055.1. Despite any other provision of this Act, if, within the first taxation year of the succession of a deceased taxpayer that is a graduated rate estate, a right to acquire a security, as defined in section 47.18, under an agreement in respect of which a benefit was deemed by section 52.1 to have been received by the taxpayer is exercised or disposed of by the taxpayer’s legal representative and the taxpayer’s legal representative makes an election in prescribed manner and within the prescribed time, the following rules apply:

(a)  the taxpayer is deemed to have incurred a loss from an office or employment for the year in which he died equal to the amount by which the amount of the benefit deemed under section 52.1 to have been received by him in respect of the right exceeds the aggregate of

i.  the amount by which the value of the right immediately before the time it was exercised or disposed of exceeds the amount paid by the taxpayer to acquire the right, and

ii.  where an amount has been deducted under section 725.2 in computing the taxpayer’s taxable income for the year in which the taxpayer died in respect of the benefit deemed under section 52.1 to have been received by the taxpayer in that year in respect of that right, 1/4 of the amount by which the amount of the benefit deemed under section 52.1 to have been received by the taxpayer in respect of that right exceeds the amount determined under subparagraph i;

(b)  the amount of the loss that would be determined under paragraph a if that paragraph were read without reference to subparagraph ii thereof, shall be deducted in computing the adjusted cost base to the succession of the right at any time; and

(c)  the legal representative shall, on or before the date prescribed for making the election under this section, file an amended fiscal return for the taxpayer for the year in which the taxpayer died to give effect to paragraph a.

1994, c. 22, s. 330; 1998, c. 16, s. 251; 2001, c. 53, s. 237; 2003, c. 2, s. 282; 2006, c. 36, s. 211; 2017, c. 1, s. 349.

2006-12-06

1055.1. Notwithstanding any other provision of this Act, if, within the first taxation year of the succession of a deceased taxpayer, a right to acquire a security, as defined in section 47.18, under an agreement in respect of which a benefit was deemed by section 52.1 to have been received by the taxpayer is exercised or disposed of by the taxpayer’s legal representative and the taxpayer’s legal representative makes an election in prescribed manner and within the prescribed time, the following rules apply:

(a)  the taxpayer is deemed to have incurred a loss from an office or employment for the year in which he died equal to the amount by which the amount of the benefit deemed under section 52.1 to have been received by him in respect of the right exceeds the aggregate of

i.  the amount by which the value of the right immediately before the time it was exercised or disposed of exceeds the amount paid by the taxpayer to acquire the right, and

ii.  where an amount has been deducted under section 725.2 in computing the taxpayer’s taxable income for the year in which the taxpayer died in respect of the benefit deemed under section 52.1 to have been received by the taxpayer in that year in respect of that right, 1/4 of the amount by which the amount of the benefit deemed under section 52.1 to have been received by the taxpayer in respect of that right exceeds the amount determined under subparagraph i;

(b)  the amount of the loss that would be determined under paragraph a if that paragraph were read without reference to subparagraph ii thereof, shall be deducted in computing the adjusted cost base to the succession of the right at any time; and

(c)  the legal representative shall, on or before the date prescribed for making the election under this section, file an amended fiscal return for the taxpayer for the year in which the taxpayer died to give effect to paragraph a.

1994, c. 22, s. 330; 1998, c. 16, s. 251; 2001, c. 53, s. 237; 2003, c. 2, s. 282; 2006, c. 36, s. 211.

2006-03-01

1055.1. Notwithstanding any other provision of this Act, if, within the first taxation year of the succession of a deceased taxpayer, a right to acquire a security, as defined in section 47.18, under an agreement in respect of which a benefit was deemed by section 52.1 to have been received by the taxpayer is exercised or disposed of by the taxpayer’s legal representative and the taxpayer’s legal representative makes an election in prescribed manner and within the prescribed time, the following rules apply:

(a)  the taxpayer is deemed to have incurred a loss from an office or employment for the year in which he died equal to the amount by which the amount of the benefit deemed under section 52.1 to have been received by him in respect of the right exceeds the aggregate of

i.  the amount by which the value of the right immediately before the time it was exercised or disposed of exceeds the amount paid by the taxpayer to acquire the right, and

ii.  where an amount has been deducted under section 725.2 in computing the taxpayer’s taxable income for the year in which the taxpayer died in respect of the benefit deemed under section 52.1 to have been received by the taxpayer in that year in respect of that right, 1/2 of the amount by which the amount of the benefit deemed under section 52.1 to have been received by the taxpayer in respect of that right exceeds the amount determined under subparagraph i;

(b)  the amount of the loss that would be determined under paragraph a if that paragraph were read without reference to subparagraph ii thereof, shall be deducted in computing the adjusted cost base to the succession of the right at any time; and

(c)  the legal representative shall, on or before the date prescribed for making the election under this section, file an amended fiscal return for the taxpayer for the year in which the taxpayer died to give effect to paragraph a.

1994, c. 22, s. 330; 1998, c. 16, s. 251; 2001, c. 53, s. 237; 2003, c. 2, s. 282.