I-3 - Taxation Act

Section 785.2.4 Disposition versions

2009-05-15

785.2.4. Except for the purposes of subparagraph c of the first paragraph of section 785.2, if an individual, other than a trust, is deemed under subparagraph b of that paragraph to have disposed of a capital property at a particular time after 1 October 1996, disposed of the capital property at a later time at which the capital property was a taxable Canadian property of the individual, and makes a valid election under subsection 8 of section 128.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in relation to the capital property, there must be deducted from the individual’s proceeds of disposition of the capital property at the particular time, and added to the individual’s proceeds of disposition of the capital property at the later time, an amount equal to the least of

(a)  the amount specified in the election in respect of the capital property;

(b)  the amount that would, but for the election, be the individual’s gain from the disposition of the capital property at the particular time; and

(c)  the amount that would be the individual’s loss from the disposition of the capital property at the later time, if the loss were determined having reference to every other provision of this Part including sections 238.4 and 738 to 745, but without reference to the election.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 8 of section 128.1 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

2004, c. 8, s. 156; 2009, c. 5, s. 340.

2006-03-01

785.2.4. Except for the purposes of paragraph c of section 785.2, where an individual, other than a trust, was deemed by paragraph b of that section to have disposed of a capital property at any particular time after 1 October 1996, has disposed of the property at a later time at which the capital property was a taxable Canadian property of the individual, and so elects in writing in the individual’s fiscal return for the taxation year that includes the later time, there shall be deducted from the individual’s proceeds of disposition of the capital property at the particular time, and added to the individual’s proceeds of disposition of the capital property at the later time, an amount equal to the least of

(a)  the amount specified in the election made in respect of the capital property;

(b)  the amount that would, but for the election, be the individual’s gain from the disposition of the capital property at the particular time; and

(c)  the amount that would be the individual’s loss from the disposition of the capital property at the later time, if the loss were determined having reference to every other provision of this Part including sections 238.4 and 738 to 745, but without reference to the election.

2004, c. 8, s. 156.