I-3 - Taxation Act

Section 752.0.10.14 Disposition versions

2017-12-07

752.0.10.14. The rules to which section 752.0.10.13 refers, in respect of a gift of a work of art made by an individual, are as follows:

(a)  in the case of a gift of a work of art that is a cultural property described in section 232,

i.  if at the time the gift is made the fair market value of the work of art that is the subject of the gift exceeds its cost amount to the individual, the individual is deemed to receive at that time proceeds of disposition in respect of the work of art equal to the greater of its cost amount to the individual at that time and the amount of the advantage, if any, in respect of the gift, and

ii.  if the individual is the succession that is the graduated rate estate of a particular individual who created the work of art that is the subject of the gift and at the time immediately before the particular individual’s death the fair market value of the work of art exceeds its cost amount to the particular individual, the particular individual is deemed to receive at that time proceeds of disposition in respect of the work of art equal to its cost amount to the particular individual at that time and the succession is deemed to have acquired the work of art at a cost equal to those proceeds of disposition; and

(b)  in the case of a gift of a work of art that is property described in the definition of “total charitable gifts” in the first paragraph of section 752.0.10.1,

i.  if at the time the gift is made the fair market value of the work of art that is the subject of the gift exceeds its cost amount to the individual and an amount is designated, in respect of the gift, in accordance with subparagraph i of paragraph b of subsection 7.1 of section 118.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), the lesser of the fair market value of the work of art otherwise determined and the greater of the amount of the advantage in respect of the gift, the cost amount to the individual of the work of art and the amount designated in respect of the gift in accordance with that subsection 7.1 is deemed to be the individual’s proceeds of disposition of the work of art and, for the purposes of section 7.21, the fair market value of the work of art, and

ii.  if the individual is the succession that is the graduated rate estate of a particular individual who created the work of art that is the subject of the gift, at the time immediately before the particular individual’s death the fair market value of the work of art exceeds its cost amount to the particular individual, and an amount is designated, in accordance with subsection 7.1 of section 118.1 of the Income Tax Act, in respect of the gift, the lesser of the fair market value of the work of art otherwise determined and the greater of the cost amount to the particular individual of the work of art and the amount designated in respect of the gift in accordance with that subsection 7.1 is deemed to be the value of the work of art at the time of the death and the cost to the succession of the work of art.

Chapter V.2 of Title II of Book I applies in relation to a designation made under subsection 7.1 of section 118.1 of the Income Tax Act.

1993, c. 64, s. 67; 2003, c. 2, s. 221; 2009, c. 5, s. 285; 2017, c. 29, s. 144.

2009-05-15

752.0.10.14. Where at any time an individual makes a gift, after 31 December 1990, of a work of art that is a cultural property described in section 232 created by the individual and that is property in the individual’s inventory, or was acquired by the individual under circumstances where section 430 applied, and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:

(a)  where the gift is made by reason of the death of the individual, the gift is deemed to have been made immediately before the death; and

(b)  the individual is deemed to have received, at that time, proceeds of disposition equal to the greater of the cost amount to the individual of the work of art at that time and the amount of the advantage in respect of the gift.

1993, c. 64, s. 67; 2003, c. 2, s. 221; 2009, c. 5, s. 285.

2006-03-01

752.0.10.14. Where at any time an individual makes a gift, after 31 December 1990, of a work of art that is a cultural property described in section 232 created by the individual and that is property in the individual’s inventory, or was acquired by the individual under circumstances where section 430 applied, and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:

(a)  where the gift is made by reason of the death of the individual, the gift is deemed to have been made immediately before the death; and

(b)  the individual is deemed to have received, at that time, proceeds of disposition equal to the cost amount to the individual of the work of art at that time.

1993, c. 64, s. 67; 2003, c. 2, s. 221.