I-3 - Taxation Act

Section 796.10 Disposition versions

2021-06-02

796.10. Where, at a particular time, an eligible trust distributes property as an eligible wind-up distribution of the trust to a person, the following rules apply:

(a)  section 688.1 does not apply in respect of the distribution;

(b)  the trust is deemed to have disposed of the property for proceeds of disposition equal to its fair market value at the particular time;

(c)  despite section 652, the trust’s gain from the disposition of the property is deemed to have become payable at the particular time by the trust to the person, and not to have become payable to any other beneficiary;

(d)  the person is deemed to have acquired the property at a cost equal to the trust’s proceeds from the disposition;

(e)  the person’s proceeds from the disposition of the eligible unit, or part of it, that results from the distribution are deemed to be equal to the cost amount of the unit to the person immediately before the particular time; and

(f)  no part of the trust’s gain from the disposition of the property is to be included in the cost to the person of the property, other than as determined by paragraph d.

2021, c. 14, s. 101.