I-3 - Taxation Act

Section 961.21 Disposition versions

2006-03-01

961.21. (1)  Where, at any time in a taxation year, a loan for which a trust governed by a registered retirement income fund has used or permitted to be used trust property as security ceases to be extant and the fair market value of the property so used was included, by virtue of section 961.19, in computing the income of the individual who is the annuitant under the fund, the individual who is at that time the annuitant under the fund may deduct, in computing his income for the year, the amount by which the amount so included in computing the income of an individual in consequence of the trust’s using or permitting to be used the property as security for the loan exceeds the net loss sustained by the trust in consequence of its using or permitting to be used the property as security for the loan.

(2)  However, the loss contemplated in subsection 1 does not include payments made by the trust as interest nor a change in the fair market value of the property.

1979, c. 18, s. 68; 1988, c. 18, s. 107; 1991, c. 25, s. 155.