I-3 - Taxation Act

Section 656 Disposition versions

2006-03-01

656. Notwithstanding section 654, where the capital cost to the trust of depreciable property of a prescribed class immediately before the deemed disposition thereof under section 653 exceeds the cost thereof to the trust as determined under section 654, for the purposes of sections 93 to 104, 130 to 130.1 and of the regulations made under paragraph a of section 130 as those sections and regulations apply to such property after that time,

(a)  the capital cost to the trust of the property on its deemed reacquisition under section 653 is deemed to be the same as before the deemed disposition thereof under that section; and

(b)  the excess is deemed to have been allowed to the trust as depreciation in respect of the property in computing the trust’s income for the taxation years that ended before the deemed reacquisition under section 653 of the property by the trust.

1972, c. 23, s. 492; 1979, c. 18, s. 54; 1994, c. 22, s. 227; 1995, c. 49, s. 152.