I-3 - Taxation Act

Section 624 Disposition versions

2020-09-24

624. For the purposes of sections 93 to 104, 130 and 130.1 and of the regulations made under paragraph a of section 130, where depreciable property of a prescribed class is distributed and the share of a person contemplated in section 620 in the capital cost of that property to the partnership exceeds the cost, to the person, of the person’s undivided right in that property, as determined under section 622, the following rules apply:

(a)  the capital cost, to the person, of the person’s undivided right in the property is deemed to be equal to the person’s former share of the capital cost of such property to the partnership; and

(b)  the excess is deemed to have been allowed to the person as depreciation for the taxation years before the acquisition by the person of the undivided right.

1972, c. 23, s. 470; 1979, c. 18, s. 51; 1997, c. 3, s. 71; 2020, c. 16, s. 94.

2006-03-01

624. For the purposes of sections 93 to 104, 130 and 130.1 and of the regulations made under paragraph a of section 130, where depreciable property of a prescribed class is distributed and the share of a person contemplated in section 620, in the capital cost of that property, to the partnership, exceeds the cost, to such person, of his undivided interest in that property, as determined under section 622,

(a)  the capital cost to that person of his undivided interest in the property is deemed to be equal to his former share of the capital cost of such property to the partnership; and

(b)  the excess is deemed to have been allowed to that person as depreciation for the taxation years before the acquisition by him of this undivided interest.

1972, c. 23, s. 470; 1979, c. 18, s. 51; 1997, c. 3, s. 71.