I-3 - Taxation Act

Section 439.1 Disposition versions

2006-03-01

439.1. Notwithstanding section 436, where property of a deceased individual is deemed under section 436 to be acquired by a person and the individual’s proceeds of disposition of the property under section 436 are redetermined under sections 93.1 to 93.3, the following rules apply:

(a)  for the purposes of sections 93 to 104, Chapter III of Title III and any regulations made under paragraph a of section 130 or section 130.1, where the property was depreciable property of a prescribed class and the amount that was the capital cost to the individual of the property exceeds the amount so redetermined under sections 93.1 to 93.3,

i.  the capital cost to the person of the property is deemed to be equal to the capital cost to the individual of the property, and

ii.  the excess is deemed to have been allowed to the person as depreciation in respect of the property for the taxation years that ended before the acquisition; and

(b)  where the property is land, other than land to which paragraph a applies, the cost to the person of the property is deemed to be equal to the amount that was the individual’s proceeds of disposition of the property as redetermined under sections 93.1 to 93.3.

1995, c. 49, s. 125.