I-4 - Act respecting the application of the Taxation Act

Section 18 Disposition versions

2019-06-19

18. Where, in the 1972 taxation year, following one or more transactions between persons not dealing at arm’s length, depreciable property (other than property that was, at any time, incorporeal capital property within the meaning of the Taxation Act (chapter I-3), as it read at that time) was disposed of by its owner and devolved before 1972 to a taxpayer, the following rules apply:

(a)  paragraph c of section 422 of the Taxation Act (chapter I-3) does not apply to such disposition;

(b)  the capital cost of the property to a taxpayer is deemed to be the same as that of the property for the original owner; and

(c)  where the capital cost of the property to such original owner exceeds the actual capital cost of the property to the taxpayer, the excess is deemed to have been allowed to the taxpayer as depreciation for the years prior to the acquisition of the property by the taxpayer.

1972, c. 24, s. 33; 1974, c. 18, s. 51; 2019, c. 14, s. 469.

1977-12-31

18. Where, in the 1972 taxation year, following one or more transactions between persons not dealing at arm’s length, depreciable property has been disposed of by its owner and has devolved before 1972 to a taxpayer the following rules apply:

(a)  paragraph c of section 422 of the Taxation Act (chapter I-3) does not apply to such disposition;

(b)  the capital cost of the property to a taxpayer is deemed to be the same as that of the property for the original owner; and

(c)  where the capital cost of the property to such original owner exceeds the actual capital cost of the property to the taxpayer, the excess is deemed to have been allowed to the taxpayer as depreciation for the years prior to the acquisition of the property by the taxpayer.

1972, c. 24, s. 33; 1974, c. 18, s. 51.