I-3 - Taxation Act

Section 737 Disposition versions

2006-03-01

737. Where a taxpayer dies in a taxation year, for the purposes of computing his taxable income for that year and the preceding taxation year, the following rules apply:

(a)  section 729 shall read as follows:

“729. A taxpayer may deduct the taxpayer’s net capital losses for all his taxation years not claimed in computing the taxpayer’s taxable income for any other taxation year.”; and

(b)  subparagraph b of the first paragraph of section 729.1 shall read as follows:

“(b) the amount by which the amount claimed in respect of the taxpayer’s net capital losses under section 729 for the particular taxation year exceeds the aggregate of

i. all amounts in respect of the taxpayer’s net capital losses that, using the formula in subparagraph ii of subparagraph a, would be required to be claimed under section 729 for the particular taxation year to produce the amount determined under subparagraph a for the particular taxation year, and

ii. all amounts each of which is an amount deducted by the taxpayer under Title Vl.5 or VI.5.1 in computing the taxpayer’s taxable income for a taxation year, except to the extent that, where the particular year is the year in which the taxpayer died, the amount claimed under section 729 for the preceding taxation year in respect of the taxpayer’s net capital losses exceeds the amount so determined under subparagraph i.”.

1972, c. 23, s. 555; 1972, c. 26, s. 55; 1973, c. 17, s. 86; 1978, c. 26, s. 129; 1985, c. 25, s. 122; 1987, c. 67, s. 147; 1990, c. 59, s. 281; 1993, c. 16, s. 276; 1993, c. 19, s. 47.