I-3 - Taxation Act

Section 254.1 Disposition versions

2019-06-19

254.1. For the purposes of section 254 and Divisions II to IV, other than section 259, where a taxpayer encumbers land with a servitude in circumstances where section 710.0.2 or 752.0.10.3.2 applies, the following rules apply:

(a)  the establishment of the servitude is deemed to be a disposition under section 254 of a portion of the land so encumbered;

(b)  the portion of the adjusted cost base to the taxpayer of the land immediately before the disposition that can reasonably be considered to be attributable to the servitude is deemed to be equal to the amount determined by the formula

A × B / C; and

(c)  the cost to the taxpayer of the land shall be reduced at the time of the disposition by the amount determined under subparagraph b.

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

(a)  A is the adjusted cost base to the taxpayer of the land immediately before the disposition;

(b)  B is the amount determined under section 710.0.2 or 752.0.10.3.2 in respect of the disposition; and

(c)  C is the fair market value of the land immediately before the disposition.

2003, c. 2, s. 85; 2006, c. 13, s. 32; 2019, c. 14, s. 102.

2006-06-13

254.1. For the purposes of section 254 and Divisions II to IV, other than section 259, where a taxpayer encumbers land with a real servitude in circumstances where section 710.0.2 or 752.0.10.3.2 applies, the following rules apply:

(a)  the establishment of the servitude is deemed to be a disposition under section 254 of a portion of the land so encumbered;

(b)  the portion of the adjusted cost base to the taxpayer of the land immediately before the disposition that can reasonably be considered to be attributable to the servitude is deemed to be equal to the amount determined by the formula

A × B / C; and

(c)  the cost to the taxpayer of the land shall be reduced at the time of the disposition by the amount determined under subparagraph b.

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

(a)  A is the adjusted cost base to the taxpayer of the land immediately before the disposition;

(b)  B is the amount determined under section 710.0.2 or 752.0.10.3.2 in respect of the disposition; and

(c)  C is the fair market value of the land immediately before the disposition.

2003, c. 2, s. 85; 2006, c. 13, s. 32.

2006-03-01

254.1. For the purposes of section 254 and Divisions II to IV of Chapter III of Title IV of Book III, other than section 259, where a taxpayer encumbers land with a real servitude in circumstances where section 710.0.2 or 752.0.10.3.2 applies, the following rules apply:

(a)  the establishment of the servitude is deemed to be a disposition under section 254 of a portion of the land so encumbered;

(b)  the portion of the adjusted cost base to the taxpayer of the land immediately before the disposition that can reasonably be considered to be attributable to the servitude is deemed to be equal to the amount determined by the formula

A × B/C; and

(c)  the cost to the taxpayer of the land shall be reduced at the time of the disposition by the amount determined under subparagraph b.

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

(a)  A is the adjusted cost base to the taxpayer of the land immediately before the disposition;

(b)  B is the amount determined under section 710.0.2 or 752.0.10.3.2 in respect of the disposition; and

(c)  C is the fair market value of the land immediately before the disposition.

2003, c. 2, s. 85.