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I-3 - Taxation Act
Section 485.40
Disposition versions
485.40. For the purposes of sections 485 to 485.18 and 485.35, where at any time in a taxation year a person disposes of a property and the person designates an amount in a prescribed form filed with the person’s fiscal return under this Part for the year, the following rules apply:
(a) the person is deemed to have issued a commercial debt obligation at that time that is settled immediately after that time;
(b) the lesser of the amount so designated and the amount that would, but for this section, be a capital gain determined in respect of the disposition because of section 485.35 shall be treated as if it were the forgiven amount at the time of the settlement in respect of the obligation referred to in paragraph a;
(c) the source in connection with which the obligation referred to in paragraph a was issued is deemed to be the business, if any, carried on by the person at the end of the year, and
(d) where the person does not carry on a business at the end of the year, the person is deemed to carry on an active business at the end of the year and the source in connection with which the obligation referred to in paragraph a was issued is deemed to be the business deemed by this paragraph to be carried on.
485.40. For the purposes of sections 485 to 485.18 and 485.35, where at any time in a taxation year a person disposes of a property and the person designates an amount in a prescribed form filed with the person’s fiscal return under this Part for the year, the following rules apply:
(a) the person is deemed to have issued a commercial debt obligation at that time that is settled immediately after that time;
(b) the lesser of the amount so designated and the amount that would, but for this section, be a capital gain determined in respect of the disposition because of section 485.35 shall be treated as if it were the forgiven amount at the time of the settlement in respect of the obligation referred to in paragraph a;
(c) the source in connection with which the obligation referred to in subparagraph a was issued is deemed to be the business, if any, carried on by the person at the end of the year, and
(d) where the person does not carry on a business at the end of the year, the person is deemed to carry on an active business at the end of the year and the source in connection with which the obligation referred to in subparagraph a was issued is deemed to be the business deemed by this paragraph to be carried on.
