I-3 - Taxation Act

Section 105.2.2 Disposition versions

2019-06-19

105.2.2. (Repealed).

2007, c. 12, s. 36; 2017, c. 29, s. 32; 2019, c. 14, s. 78.

2017-12-07

105.2.2. A taxpayer may, in the taxpayer’s fiscal return filed for a taxation year in accordance with section 1000, or with an election under section 502 filed on or before the taxpayer’s filing-due date for the year, elect to have the rules set out in the second paragraph apply, if at any time in the year the taxpayer disposes of a property that is an incorporeal capital property in respect of which an amount was payable or disbursed to acquire the property before 1972, which amount would have been an incorporeal capital amount had it been payable or disbursed as a result of a transaction that occurred after 1971, and

(a)  the actual proceeds of disposition exceed the total amount payable or disbursed;

(b)  the total amount payable or disbursed can be determined;

(c)  section 36 of the Act respecting the application of the Taxation Act (chapter I-4) applies in respect of the disposition of that property; and

(d)  for a taxpayer who is an individual, the taxpayer’s exempt gains balance in respect of a business for the year determined under section 107.2 is nil.

The rules to which the first paragraph refers are the following:

(a)  for the purposes of section 107, excluding an amount determined under subparagraph a of the first paragraph of section 107, the proceeds of disposition of the property are deemed to be nil;

(b)  the taxpayer is deemed to have disposed at that time of a capital property that had, immediately before that time, an adjusted cost base to the taxpayer equal to nil, for proceeds of disposition equal to the amount determined, in respect of the disposition, under section 36 of the Act respecting the application of the Taxation Act; and

(c)  where the incorporeal capital property is at that time a qualified farm or fishing property (within the meaning assigned by section 726.6) of the taxpayer, the capital property deemed to have been disposed of by the taxpayer as a consequence of the application of subparagraph b is deemed to be a qualified farm or fishing property of the taxpayer at that time.

2007, c. 12, s. 36; 2017, c. 29, s. 32.

2007-11-07

105.2.2. A taxpayer may, in the taxpayer’s fiscal return filed for a taxation year in accordance with section 1000, or with an election under section 502 filed on or before the taxpayer’s filing-due date for the year, elect to have the rules set out in the second paragraph apply, if at any time in the year the taxpayer disposes of a property that is an incorporeal capital property in respect of which an amount was payable or disbursed to acquire the property before 1972, which amount would have been an incorporeal capital amount had it been payable or disbursed as a result of a transaction that occurred after 1971, and

(a)  the actual proceeds of disposition exceed the total amount payable or disbursed;

(b)  the total amount payable or disbursed can be determined;

(c)  section 36 of the Act respecting the application of the Taxation Act (chapter I-4) applies in respect of the disposition of that property; and

(d)  for a taxpayer who is an individual, the taxpayer’s exempt gains balance in respect of a business for the year determined under section 107.2 is nil.

The rules to which the first paragraph refers are the following:

(a)  for the purposes of section 107, excluding an amount determined under subparagraph a of the first paragraph of section 107, the proceeds of disposition of the property are deemed to be nil;

(b)  the taxpayer is deemed to have disposed at that time of a capital property that had, immediately before that time, an adjusted cost base to the taxpayer equal to nil, for proceeds of disposition equal to the amount determined, in respect of the disposition, under section 36 of the Act respecting the application of the Taxation Act; and

(c)  if the incorporeal capital property is at that time a qualified farm property or a qualified fishing property of the taxpayer, within the meaning assigned to those expressions by section 726.6, the capital property deemed to have been disposed of by the taxpayer as a consequence of the application of subparagraph b is deemed to be at that time a qualified farm property or a qualified fishing property of the taxpayer.

2007, c. 12, s. 36.