I-3 - Taxation Act

Section 524 Disposition versions

2019-06-19

524. Section 523 applies where the property disposed of is

(a)  (paragraph repealed);

(b)  depreciable property of a prescribed class the proceeds of disposition of which would otherwise be less than the least of

i.  the undepreciated capital cost to the taxpayer of all property of that class immediately before the disposition,

ii.  the cost to the taxpayer of the property, and

iii.  the fair market value of the property at the time of its disposition; and

(c)  capital property, other than depreciable property of a prescribed class, an inventory, a NISA Fund No. 2, a farm income stabilization account or a property that is referred to in paragraph g or g.1 of subsection 1.1 of section 85 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), and the amount agreed upon in accordance with section 522 in the prescribed form in respect of the property is less than the lesser of

i.  the fair market value of the property at the time of the disposition, and

ii.  the cost amount to the taxpayer of the property at the time of disposition.

1972, c. 23, s. 409; 1975, c. 22, s. 118; 1982, c. 5, s. 121; 1990, c. 59, s. 190; 1994, c. 22, s. 196; 1996, c. 39, s. 146; 1997, c. 85, s. 88; 2000, c. 39, s. 28; 2004, c. 21, s. 84; 2005, c. 1, s. 118; 2019, c. 14, s. 150.

2006-03-01

524. Section 523 applies where the property disposed of is

(a)  incorporeal capital property, in respect of a business of the taxpayer, the proceeds of disposition of which would otherwise be less than the least of

i.  4/3 of the eligible incorporeal capital amount of the taxpayer in respect of the business immediately before the disposition,

ii.  the cost to the taxpayer of the property, and

iii.  the fair market value of the property at the time of its disposition;

(b)  depreciable property of a prescribed class the proceeds of disposition of which would otherwise be less than the least of

i.  the undepreciated capital cost to the taxpayer of all property of that class immediately before the disposition,

ii.  the cost to the taxpayer of the property, and

iii.  the fair market value of the property at the time of its disposition; and

(c)  capital property, other than depreciable property of a prescribed class, an inventory, a NISA Fund No. 2, a farm income stabilization account or a property that is referred to in paragraph g or g.1 of subsection 1.1 of section 85 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), and the amount agreed upon in accordance with section 522 in the prescribed form in respect of the property is less than the lesser of

i.  the fair market value of the property at the time of the disposition, and

ii.  the cost amount to the taxpayer of the property at the time of disposition.

1972, c. 23, s. 409; 1975, c. 22, s. 118; 1982, c. 5, s. 121; 1990, c. 59, s. 190; 1994, c. 22, s. 196; 1996, c. 39, s. 146; 1997, c. 85, s. 88; 2000, c. 39, s. 28; 2004, c. 21, s. 84; 2005, c. 1, s. 118.