I-3 - Taxation Act

Section 688.2 Disposition versions

2010-10-27

688.2. Where at any time before 1 January 2005 a trust referred to in paragraph c, d or e of the definition of “flow-through entity” in the first paragraph of section 251.1 distributes property to a beneficiary under the trust as consideration for all or a portion of the beneficiary’s interests in the trust and the beneficiary files with the Minister an election in respect of the property on or before the beneficiary’s filing-due date for the taxation year that includes that time, the beneficiary shall include in the cost to the beneficiary of a particular property, other than money, received by the beneficiary as part of the distribution of property the least of

(a)  the amount by which the beneficiary’s exempt capital gains balance, within the meaning of section 251.1, in respect of the trust for the beneficiary’s taxation year that includes that time exceeds the aggregate of all amounts each of which is

i.  an amount by which a capital gain is reduced under Chapter II.1 of Title IV in the year because of the beneficiary’s exempt capital gains balance in respect of the trust,

ii.  subject to the second paragraph, twice an amount by which a taxable capital gain is reduced under Chapter II.1 of Title IV in the year because of the beneficiary’s exempt capital gains balance in respect of the trust, or

iii.  an amount included in the cost to the beneficiary of another property received by the beneficiary at or before that time in the year because of this section;

(b)  the amount by which the fair market value of the particular property at that time exceeds the adjusted cost base to the trust of the particular property immediately before that time; and

(c)  the amount designated in respect of the particular property in the election.

Where the beneficiary’s taxation year includes 28 February 2000 or 17 October 2000 or begins after 28 February 2000 and ends before 17 October 2000, the reference to the word “twice” in subparagraph ii of subparagraph a of the first paragraph shall be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies to the beneficiary for the year.

2000, c. 5, s. 150; 2001, c. 7, s. 76; 2003, c. 2, s. 177; 2010, c. 25, s. 54.

2006-03-01

688.2. Where at any time before 1 January 2005 a trust referred to in paragraph c, d or e of the definition of “flow-through entity” in the first paragraph of section 251.1 distributes property to a beneficiary under the trust as consideration for all or a portion of the beneficiary’s interests in the trust and the beneficiary files with the Minister an election in respect of the property on or before the beneficiary’s filing-due date for the taxation year that includes that time, the beneficiary shall include in the cost to the beneficiary of a particular property, other than money, received by the beneficiary as part of the distribution of property the least of

(a)  the amount by which the beneficiary’s exempt capital gains balance, within the meaning of section 251.1, in respect of the trust for the beneficiary’s taxation year that includes that time exceeds the aggregate of all amounts each of which is

i.  an amount by which a capital gain is reduced under Chapter II.1 of Title IV of Book III in the year because of the beneficiary’s exempt capital gains balance in respect of the trust,

ii.  subject to the second paragraph, twice an amount by which a taxable capital gain is reduced under Chapter II.1 of Title IV of Book III in the year because of the beneficiary’s exempt capital gains balance in respect of the trust, or

iii.  an amount included in the cost to the beneficiary of another property received by the beneficiary at or before that time in the year because of this section;

(b)  the amount by which the fair market value of the particular property at that time exceeds the adjusted cost base to the trust of the particular property immediately before that time; and

(c)  the amount designated in respect of the particular property in the election.

Where the beneficiary’s taxation year includes 28 February 2000 or 17 October 2000 or begins after 28 February 2000 and ends before 17 October 2000, the reference to the word “twice” in subparagraph ii of subparagraph a of the first paragraph shall be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies to the beneficiary for the year.

2000, c. 5, s. 150; 2001, c. 7, s. 76; 2003, c. 2, s. 177.