I-3 - Taxation Act

Section 261.1 Disposition versions

2021-06-02

261.1. Where, at the end of a fiscal period of a partnership, a member of the partnership is a limited partner of the partnership or is a member of the partnership who was a specified member of the partnership at all times since becoming a member, except where the member’s partnership interest was held by the member on 22 February 1994 and is an excluded interest at the end of the fiscal period, and except where paragraph c of section 618 or section 642 applies:

(a)  the amount determined under the second paragraph is deemed to be a gain from the disposition, at the end of the fiscal period, of the member’s interest in the partnership; and

(b)  for the purposes of section 26, the first paragraph of section 27, Title VI.5 of Book IV, sections 1000 to 1003.2, 1102.4 and 1102.5, the interest is deemed to have been disposed of by the member at that time.

The amount to which subparagraph a of the first paragraph refers in respect of a member’s interest in a partnership at the end of a fiscal period of the partnership is equal to the amount by which the aggregate of all amounts required by section 257 to be deducted in computing the adjusted cost base to the member of the interest in the partnership at that time and, if the partnership is a professional partnership, the amount described in subparagraph i of paragraph l of section 257 in relation to the member in respect of the fiscal period exceeds the aggregate of

(a)  the cost to the member of the interest determined for the purpose of computing the adjusted cost base to the member of that interest at that time;

(b)  all amounts required by section 255 to be added to the cost to the member of the interest in computing the adjusted cost base to the member of that interest at that time; and

(c)  if the partnership is a professional partnership, the amount described in subparagraph i of paragraph i of section 255 in relation to the member in respect of the fiscal period.

For the purposes of the second paragraph, “professional partnership” means a partnership through which one or more persons carry on the practice of a profession that is governed or regulated under a law of Canada or a province.

1996, c. 39, s. 78; 1997, c. 3, s. 71; 2015, c. 21, s. 150; 2021, c. 14, s. 35.

2015-10-21

261.1. Where, at the end of a fiscal period of a partnership, a member of the partnership is a limited partner of the partnership or is a member of the partnership who was a specified member of the partnership at all times since becoming a member, except where the member’s partnership interest was held by the member on 22 February 1994 and is an excluded interest at the end of the fiscal period, and except where paragraph c of section 618 or section 642 applies:

(a)  the amount determined under the second paragraph is deemed to be a gain from the disposition, at the end of the fiscal period, of the member’s interest in the partnership; and

(b)  for the purposes of Title VI.5 of Book IV, the interest is deemed to have been disposed of by the member at that time.

The amount to which subparagraph a of the first paragraph refers in respect of a member’s interest in a partnership at the end of a fiscal period of the partnership is equal to the amount by which the aggregate of all amounts required by section 257 to be deducted in computing the adjusted cost base to the member of the interest in the partnership at that time and, if the partnership is a professional partnership, the amount described in subparagraph i of paragraph l of section 257 in relation to the member in respect of the fiscal period exceeds the aggregate of

(a)  the cost to the member of the interest determined for the purpose of computing the adjusted cost base to the member of that interest at that time;

(b)  all amounts required by section 255 to be added to the cost to the member of the interest in computing the adjusted cost base to the member of that interest at that time; and

(c)  if the partnership is a professional partnership, the amount described in subparagraph i of paragraph i of section 255 in relation to the member in respect of the fiscal period.

For the purposes of the second paragraph, “professional partnership” means a partnership through which one or more persons carry on the practice of a profession that is governed or regulated under a law of Canada or a province.

1996, c. 39, s. 78; 1997, c. 3, s. 71; 2015, c. 21, s. 150.

2006-03-01

261.1. Where, at the end of a fiscal period of a partnership, a member of the partnership is a limited partner of the partnership or is a member of the partnership who was a specified member of the partnership at all times since becoming a member, except where the member’s partnership interest was held by the member on 22 February 1994 and is an excluded interest at the end of the fiscal period, and except where paragraph c of section 618 or section 642 applies:

(a)  the amount determined under the second paragraph is deemed to be a gain from the disposition, at the end of the fiscal period, of the member’s interest in the partnership; and

(b)  for the purposes of Title VI.5 of Book IV, the interest is deemed to have been disposed of by the member at that time.

The amount to which subparagraph a of the first paragraph refers in respect of a member’s interest in a partnership at the end of a fiscal period of the partnership is the amount by which the aggregate of all amounts required by section 257 to be deducted in computing the adjusted cost base to the member of the interest in the partnership at that time exceeds the aggregate of

(a)  the cost to the member of the interest determined for the purpose of computing the adjusted cost base to the member of that interest at that time; and

(b)  all amounts required by section 255 to be added to the cost to the member of the interest in computing the adjusted cost base to the member of that interest at that time.

1996, c. 39, s. 78; 1997, c. 3, s. 71.