I-3 - Taxation Act

Section 264.5 Disposition versions

2006-03-01

264.5. A trust, in computing its business investment loss for a taxation year from the disposition of a particular property, shall deduct an amount equal to the lesser of

(a)  the amount that would be its business investment loss from the disposition of that particular property if section 236.1 were read without reference to the fourth paragraph thereof;

(b)  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount deducted by the trust by reason of the fourth paragraph of section 236.1 in computing its business investment loss from the disposition of property in taxation years preceding the year, or from the disposition of property other than the particular property in the year:

i.  the aggregate of all amounts each of which is twice the amount designated by it under section 668.1 in respect of a beneficiary in its fiscal return for a preceding taxation year that ended before 1 January 1988 or began after 17 October 2000,

ii.  the aggregate of all amounts each of which is

(1)  3/2 of the amount designated by it under section 668.1 in respect of a beneficiary in its fiscal return for a preceding taxation year that ended after 31 December 1987 but before 1 January 1990 or that began after 28 February 2000 and ended before 17 October 2000, or

(2)  the product obtained by multiplying the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies to the trust for a preceding taxation year that includes 28 February 2000 or 17 October 2000 by the amount designated by the trust under section 668.1 in respect of a beneficiary in its fiscal return for that preceding taxation year, and

iii.  the aggregate of all amounts each of which is 4/3 of the amount designated by it under section 668.1 in respect of a beneficiary in its fiscal return for a preceding taxation year that ended after 31 December 1989 but before 28 February 2000.

However, where a particular amount was included in computing the trust’s income for a taxation year that ended after 31 December 1987 but before 1 January 1990 under subparagraph ii of paragraph a of section 105, as it read in respect of that taxation year, the reference in subparagraph 1 of subparagraph ii of subparagraph b of the first paragraph to “3/2” shall be read as a reference to “4/3” in respect of that portion of any amount deducted under Title VI.5 of Book IV in respect of the particular amount.

1987, c. 67, s. 68; 1990, c. 59, s. 125; 1995, c. 49, s. 65; 2003, c. 2, s. 95.