I-3 - Taxation Act

Section 737.18.13 Disposition versions

2006-03-01

737.18.13. For the purpose of computing the taxable income of an individual referred to in section 737.18.10 for a taxation year, the following rules apply:

(a)  for the purpose of computing the deduction under section 725.2, the amount that is the benefit the individual is deemed to receive in the year under any of sections 49 and 50 to 52.1, in respect of a security, or the transfer or any other disposition of the rights under the agreement referred to in section 48 and which the individual has included in computing the individual’s income for the year, shall not include the portion of the amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period in relation to an employment that is included in the year;

(b)  for the purpose of computing the deduction under section 725.3, the amount that is the benefit the individual is deemed to receive in the year under section 49, as a consequence of the application of section 49.2, in respect of a share acquired by the individual after 22 May 1985 and which the individual has included in computing the individual’s income for the year, shall not include the portion of the amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period in relation to an employment that is included in the year;

(c)  for the purpose of computing the deduction under section 725.4, the amount included by the individual under paragraph b of section 218 in computing the individual’s income for the year in respect of a share the individual has received after 22 May 1985 shall not include the portion of the amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period in relation to an employment that is included in the year;

(d)  for the purpose of computing the deduction under section 725.5, the amount included by the individual under section 888.1 in computing the individual’s income for the year shall not include the portion of the amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period in relation to an employment that is included in the year;

(e)  for the purpose of computing the deduction under section 725, the amount included by the individual in computing the individual’s income for the year, which is an amount described in any of the paragraphs of that section, shall not include the portion of the amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period in relation to an employment that is included in the year;

(f)  for the purpose of computing the deduction under section 725.1.2, the amount included by the individual in computing the individual’s income for the year, which is an amount described in the second paragraph of that section, shall not include the portion of the amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period in relation to an employment that is included in the year;

(g)  where the individual has included in computing the individual’s income for the year an amount under sections 487.1 to 487.6 in respect of a benefit received by the individual as a home relocation loan, the individual shall, for the purpose of computing the deduction provided for in section 725.6,

i.  subtract, from the amount determined in paragraph a of section 725.6, the portion of that amount that may reasonably be attributed to the part of the year that is included in the individual’s exemption period, in relation to an employment,

ii.  subtract, from the amount determined in paragraph b of section 725.6, the amount of interest, computed pursuant to that paragraph, for the part of the year that is included in the individual’s exemption period, in relation to an employment, and

iii.  subtract, from the amount determined in paragraph c of section 725.6, the portion of that amount that may reasonably be considered to have been received in the part of the year that is included in the individual’s exemption period, in relation to an employment; and

(h)  a capital gain realized during the individual’s exemption period, in relation to an employment, or a capital loss, including any allowable business investment loss, for such a period is deemed to be nil for the purposes of Titles VI.5 and VI.5.1.

2000, c. 39, s. 49; 2001, c. 53, s. 104; 2004, c. 21, s. 144.