I-3 - Taxation Act

Section 294 Disposition versions

2006-03-01

294. Subject to section 296, the granting of an option is a disposition of property the adjusted cost base of which to the grantor immediately before he grants it is nil.

This section does not apply in respect of

(a)  an option to purchase or sell a principal residence;

(b)  an option granted by a corporation to purchase shares of its capital stock or bonds or debentures to be issued by it;

(b.1)  an option granted by a trust to purchase units of the trust to be issued by the trust;

(c)  (subparagraph repealed).

1972, c. 23, s. 271; 1985, c. 25, s. 52; 1987, c. 67, s. 69; 1993, c. 16, s. 117; 1996, c. 39, s. 273; 1997, c. 3, s. 71.