I-3 - Taxation Act

Section 2.1.2 Disposition versions

2020-09-24

2.1.2. Where a property owned by two or more persons is the subject of a partition among such persons and, as a consequence thereof, each such person has, in the property, a new right the fair market value of which immediately after the partition, expressed as a percentage of the fair market value of all the rights in the property immediately after the partition, is equal to the fair market value of that person’s undivided right immediately before the partition, expressed as a percentage of the fair market value of all the undivided rights in the property immediately before the partition, the following rules apply:

(a)  section 2.1.1 does not apply to the property, and

(b)  the new right of each such person is deemed to be a continuation of that person’s undivided right in the property immediately before the partition.

For the purposes of this section, the following rules apply:

(a)  subdivisions of a building or of a parcel of land that are established in the course of, or in contemplation of, a partition and that are co-owned by the same persons who co-owned the building or the parcel of land, or by their assignees, shall be regarded as one property; and

(b)  where a right in the property is or includes an undivided right, the fair market value of the right must be determined without regard to any discount or premium that may apply to a minority or majority right in the property.

1993, c. 16, s. 3; 2005, c. 1, s. 23; 2020, c. 16, s. 27.

2006-03-01

2.1.2. Where a property owned by two or more persons is the subject of a partition among such persons and, as a consequence thereof, each such person has, in the property, a new interest the fair market value of which immediately after the partition, expressed as a percentage of the fair market value of all the interests in the property immediately after the partition, is equal to the fair market value of that person’s undivided interest immediately before the partition, expressed as a percentage of the fair market value of all the undivided interests in the property immediately before the partition, the following rules apply:

(a)  section 2.1.1 does not apply to the property, and

(b)  the new interest of each such person is deemed to be a continuation of that person’s undivided interest in the property immediately before the partition.

For the purposes of this section, the following rules apply:

(a)  subdivisions of a building or of a parcel of land that are established in the course of, or in contemplation of, a partition and that are co-owned by the same persons who co-owned the building or the parcel of land, or by their assignees, shall be regarded as one property; and

(b)  where an interest in the property is or includes an undivided interest, the fair market value of the interest shall be determined without regard to any discount or premium that may apply to a minority or majority interest in the property.

1993, c. 16, s. 3; 2005, c. 1, s. 23.