I-3 - Taxation Act

Section 97.1 Disposition versions

2006-03-01

97.1. Where at any time in a taxation year, a taxpayer acquires a particular property in respect of which, immediately before that time, he had a leasehold interest that was included in a prescribed class, for the purposes of this division, sections 130.1, 142 and 149 and the regulations made under paragraph a of section 130, the following rules apply:

(a)  the leasehold interest is deemed to have been disposed of by the taxpayer at that time for proceeds of disposition equal to the amount by which the capital cost of the leasehold interest, immediately before that time, exceeds the aggregate of all amounts claimed by the taxpayer in respect of the leasehold interest that were deductible under paragraph a of section 130 in computing his income for previous taxation years;

(b)  the property is deemed to be depreciable property of a prescribed class of the taxpayer acquired by him at that time and the taxpayer shall add to the capital cost of that property an amount equal to the capital cost referred to in paragraph a; and

(c)  the taxpayer shall add the aggregate referred to in paragraph a to the total depreciation allowed to the taxpayer before that time in respect of the class to which that property belongs.

1978, c. 26, s. 18; 2005, c. 23, s. 39.