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

Section 84 Disposition versions

2005-03-17

84. The fiscal equity of a partnership, at a particular time, is the excess over the aggregate contemplated in section 85 of the aggregate of the following amounts

(a)  the amount of any money of the partnership on hand at the commencement of its first fiscal period ending after 1971;

(b)  the cost amount to it, at the commencement of that fiscal period, of any partnership property other than capital property or an incorporeal capital amount;

(c)  an amount in respect of any property other than depreciable property that was, at the commencement of that fiscal period, capital property of the partnership equal to:

i.  the proceeds of disposition of that property, if there was a disposition before 1972;

ii.  the cost of the property to the partnership, as determined in this chapter for the purpose of computing the adjusted cost base of the property immediately before its disposition, if there was a disposition after 1971 and before the particular time; and

iii.  in other cases, the cost of the property to the partnership, as determined in this chapter for the purpose of computing the adjusted cost base of the property immediately before the particular time;

(d)  an amount in respect of any prescribed class of depreciable property of the partnership equal to the excess of the undepreciated capital cost of the property of that class on 1 January 1972 over the capital cost of the property of that class acquired by the partnership after the commencement of that fiscal period and before 1972;

(e)  an amount in respect of any other depreciable property of the partnership at the commencement of that fiscal year, equal to the amount by which the actual cost of the property to the partnership or the amount at which the partnership is deemed to have acquired it under the former Tax Act respecting individuals or the former Corporation Tax Act as they applied to the 1971 taxation year exceeds the aggregate of the amounts allowed as deductions in respect of the cost of such property under section 13 of the former Tax Act respecting individuals or section 12 of the former Corporation Tax Act as they applied in computing the partners’ income from the partnership for the taxation years ending before 1972;

(f)  an amount in respect of any property that was depreciable property of the partnership at the commencement of that fiscal period equal to:

i.  where the property was disposed of before 1972, the excess of the proceeds of disposition over the amount by which the lesser of the proceeds of disposition and the capital cost exceeds, in the case of depreciable property of a prescribed class, the undepreciated capital cost of all the property of that class at the time of disposition, or, in the case of any other depreciable property, the amount that would be determined under paragraph e if the words “at the commencement of that fiscal year” were replaced by the words “at the time of the disposition”;

ii.  the excess of the lesser of the proceeds of its disposition and of its fair market value on valuation day over its capital cost to the partnership, if the disposition occurred after 1971 and before the particular time; and

iii.  in other cases, the excess of the lesser of its fair market value on valuation day and that at the particular time over its capital cost to the partnership; or

(g)  an amount in respect of a business carried on by the partnership in the 1971 fiscal year and thereafter without interruption until the particular time, equal to the amount, if the partnership disposed of such business at the particular time at its fair market value at that time, by which the amount of incorporeal capital property in respect of the business, computed without taking account of section 36, which would become receivable by the partnership, exceeds the amount which would be deemed to have become receivable under the said section.

1972, c. 24, s. 83; 1973, c. 17, s. 154; 1974, c. 18, s. 55; 1975, c. 22, s. 278; 2005, c. 1, s. 301.

1977-12-31

84. The fiscal equity of a partnership, at a particular time, is the excess over the aggregate contemplated in section 85 of the aggregate of the following amounts

(a)  the amount of any money of the partnership on hand at the commencement of its first fiscal period ending after 1971;

(b)  the cost amount to it, at the commencement of that fiscal period, of any partnership property other than capital property or an intangible capital amount;

(c)  an amount in respect of any property other than depreciable property that was, at the commencement of that fiscal period, capital property of the partnership equal to:

i.  the proceeds of disposition of that property, if there was a disposition before 1972;

ii.  the cost of the property to the partnership, as determined in this chapter for the purpose of computing the adjusted cost base of the property immediately before its disposition, if there was a disposition after 1971 and before the particular time; and

iii.  in other cases, the cost of the property to the partnership, as determined in this chapter for the purpose of computing the adjusted cost base of the property immediately before the particular time;

(d)  an amount in respect of any prescribed class of depreciable property of the partnership equal to the excess of the undepreciated capital cost of the property of that class on 1 January 1972 over the capital cost of the property of that class acquired by the partnership after the commencement of that fiscal period and before 1972;

(e)  an amount in respect of any other depreciable property of the partnership at the commencement of that fiscal year, equal to the amount by which the actual cost of the property to the partnership or the amount at which the partnership is deemed to have acquired it under the former Tax Act respecting individuals or the former Corporation Tax Act as they applied to the 1971 taxation year exceeds the aggregate of the amounts allowed as deductions in respect of the cost of such property under section 13 of the former Tax Act respecting individuals or section 12 of the former Corporation Tax Act as they applied in computing the partners’ income from the partnership for the taxation years ending before 1972;

(f)  an amount in respect of any property that was depreciable property of the partnership at the commencement of that fiscal period equal to:

i.  where the property was disposed of before 1972, the excess of the proceeds of disposition over the amount by which the lesser of the proceeds of disposition and the capital cost exceeds, in the case of depreciable property of a prescribed class, the undepreciated capital cost of all the property of that class at the time of disposition, or, in the case of any other depreciable property, the amount that would be determined under paragraph e if the words “at the commencement of that fiscal year” were replaced by the words “at the time of the disposition”;

ii.  the excess of the lesser of the proceeds of its disposition and of its fair market value on valuation day over its capital cost to the partnership, if the disposition occurred after 1971 and before the particular time; and

iii.  in other cases, the excess of the lesser of its fair market value on valuation day and that at the particular time over its capital cost to the partnership; or

(g)  an amount in respect of a business carried on by the partnership in the 1971 fiscal year and thereafter without interruption until the particular time, equal to the amount, if the partnership disposed of such business at the particular time at its fair market value at that time, by which the amount of intangible capital property in respect of the business, computed without taking account of section 36, which would become receivable by the partnership, exceeds the amount which would be deemed to have become receivable under the said section.

1972, c. 24, s. 83; 1973, c. 17, s. 154; 1974, c. 18, s. 55; 1975, c. 22, s. 278.