I-3 - Taxation Act

Section 271 Disposition versions

2021-06-02

271. The individual’s gain for a taxation year from the disposition of a property that is or was the individual’s principal residence at any time after the date, in this section referred to as the “acquisition date”, that is the later of 31 December 1971 and the day on which the individual last acquired it, is the amount determined by the formula

A − (A × B / C) − D.

For the purposes of the formula in the first paragraph,

(a)  A is the amount that would, if this Act were read without reference to this section and sections 726.9.2 and 726.9.4, be the individual’s gain from the disposition of the property for the year;

(b)  B is

i.  if the individual was resident in Canada during the taxation year that includes the acquisition date, one plus the number of taxation years that end after the acquisition date for which the property is the individual’s principal residence and during which the individual was resident in Canada, or

ii.  if the individual was not resident in Canada at any time in the taxation year that includes the acquisition date, the number of taxation years that end after the acquisition date for which the property is the individual’s principal residence and during which the individual was resident in Canada;

(c)  C is the number of taxation years that end after the acquisition date during which the individual owned the property whether jointly with another person or otherwise; and

(d)  D is

i.  where the acquisition date is before 23 February 1994 and the individual or a spouse of the individual elected under section 726.9.2 in respect of the property or a right therein that was owned, immediately before the disposition, by the individual, 4/3 of the lesser of

(1)  the aggregate of all amounts each of which is the taxable capital gain of the individual or of a spouse of the individual that would have resulted from an election by the individual or spouse under section 726.9.2 in respect of the property or right if this Act were read without reference to section 726.9.3 and the amount designated in the election were equal to the amount by which the fair market value of the property or right at the end of 22 February 1994 exceeds the amount designated in the election that was made in respect of the property or right that exceeds 11/10 of its fair market value at that time, and

(2)  the aggregate of all amounts each of which is the taxable capital gain of the individual or of a spouse of the individual that would have resulted from an election that was made under section 726.9.2 in respect of the property or right if the property were the principal residence of neither the individual nor the spouse for each particular taxation year unless the property was designated, in a fiscal return for the taxation year that includes 22 February 1994 or for a preceding taxation year, to be the principal residence of either of them for the particular taxation year, and

ii.  in any other case, zero.

1972, c. 23, s. 251; 1973, c. 17, s. 25; 1978, c. 26, s. 45; 1996, c. 39, s. 83; 2020, c. 16, s. 54; 2021, c. 14, s. 36.

2020-09-24

271. The individual’s gain for a taxation year from the disposition of a property that is or was the individual’s principal residence at any time after the date, in this section referred to as the “acquisition date”, that is the later of 31 December 1971 and the day on which the individual last acquired it, is the amount determined by the formula

A − (A × B / C) − D.

For the purposes of the formula in the first paragraph,

(a)  A is the amount that would, if this Act were read without reference to this section and sections 726.9.2 and 726.9.4, be the individual’s gain from the disposition of the property for the year;

(b)  B is one plus the number of taxation years that end after the acquisition date for which the property was the individual’s principal residence and during which the individual was resident in Canada;

(c)  C is the number of taxation years that end after the acquisition date during which the individual owned the property whether jointly with another person or otherwise; and

(d)  D is

i.  where the acquisition date is before 23 February 1994 and the individual or a spouse of the individual elected under section 726.9.2 in respect of the property or a right therein that was owned, immediately before the disposition, by the individual, 4/3 of the lesser of

(1)  the aggregate of all amounts each of which is the taxable capital gain of the individual or of a spouse of the individual that would have resulted from an election by the individual or spouse under section 726.9.2 in respect of the property or right if this Act were read without reference to section 726.9.3 and the amount designated in the election were equal to the amount by which the fair market value of the property or right at the end of 22 February 1994 exceeds the amount designated in the election that was made in respect of the property or right that exceeds 11/10 of its fair market value at that time, and

(2)  the aggregate of all amounts each of which is the taxable capital gain of the individual or of a spouse of the individual that would have resulted from an election that was made under section 726.9.2 in respect of the property or right if the property were the principal residence of neither the individual nor the spouse for each particular taxation year unless the property was designated, in a fiscal return for the taxation year that includes 22 February 1994 or for a preceding taxation year, to be the principal residence of either of them for the particular taxation year, and

ii.  in any other case, zero.

1972, c. 23, s. 251; 1973, c. 17, s. 25; 1978, c. 26, s. 45; 1996, c. 39, s. 83; 2020, c. 16, s. 54.

2006-03-01

271. The individual’s gain for a taxation year from the disposition of a property that is or was the individual’s principal residence at any time after the date, in this section referred to as the “acquisition date”, that is the later of 31 December 1971 and the day on which the individual last acquired it, is the amount determined by the formula

A − (A × B / C) − D.

For the purposes of the formula in the first paragraph,

(a)  A is the amount that would, if this Act were read without reference to this section and sections 726.9.2 and 726.9.4, be the individual’s gain from the disposition of the property for the year;

(b)  B is one plus the number of taxation years that end after the acquisition date for which the property was the individual’s principal residence and during which the individual was resident in Canada;

(c)  C is the number of taxation years that end after the acquisition date during which the individual owned the property whether jointly with another person or otherwise; and

(d)  D is

i.  where the acquisition date is before 23 February 1994 and the individual or a spouse of the individual elected under section 726.9.2 in respect of the property or an interest therein that was owned, immediately before the disposition, by the individual, 4/3 of the lesser of

(1)  the aggregate of all amounts each of which is the taxable capital gain of the individual or of a spouse of the individual that would have resulted from an election by the individual or spouse under section 726.9.2 in respect of the property or interest if this Act were read without reference to section 726.9.3 and the amount designated in the election were equal to the amount by which the fair market value of the property or interest at the end of 22 February 1994 exceeds the amount designated in the election that was made in respect of the property or interest that exceeds 11/10 of its fair market value at that time, and

(2)  the aggregate of all amounts each of which is the taxable capital gain of the individual or of a spouse of the individual that would have resulted from an election that was made under section 726.9.2 in respect of the property or interest if the property were the principal residence of neither the individual nor the spouse for each particular taxation year unless the property was designated, in a fiscal return for the taxation year that includes 22 February 1994 or for a preceding taxation year, to be the principal residence of either of them for the particular taxation year, and

ii.  in any other case, zero.

1972, c. 23, s. 251; 1973, c. 17, s. 25; 1978, c. 26, s. 45; 1996, c. 39, s. 83.