I-3 - Taxation Act

Section 104.1 Disposition versions

2006-03-01

104.1. Where an amount in respect of depreciable property of a prescribed class is included under section 94 in computing the income for a taxation year of a taxpayer, whether that taxpayer is an individual or a corporation, and an amount was deducted or is deemed, pursuant to section 104.3, to have been deducted under section 156.1 or 156.1.1 in respect of that property in computing the taxpayer’s income from a business for a preceding taxation year, there shall be included in computing the taxpayer’s income from a business for the year an amount equal to the product obtained by multiplying the aggregate of the amounts determined in accordance with any of sections 156.2 to 156.3.1 in respect of the property for a preceding taxation year by the amount determined by the formula

A / B × C / D.

For the purposes of the formula provided in the first paragraph,

(a)  the letter A represents the amount included under section 94 in computing the income of the taxpayer for the year in respect of the property referred to in the first paragraph;

(b)  the letter B represents the total depreciation, within the meaning of subparagraph b of the first paragraph of section 93, allowed to the taxpayer in respect of the property referred to in the first paragraph;

(c)  the letter C represents

i.  where the taxpayer is an individual, the aggregate of the income earned in Québec and elsewhere by the individual for the year;

ii.  where the taxpayer is a corporation, the aggregate of the business carried on in Canada or in Québec and elsewhere by the corporation in the year;

(d)  the letter D represents

i.  where the taxpayer is an individual, the income earned in Québec by the individual for the year;

ii.  where the taxpayer is a corporation, the business carried on in Québec by the corporation in the year.

1989, c. 5, s. 35; 1993, c. 16, s. 60; 1995, c. 1, s. 199; 1997, c. 3, s. 71; 1999, c. 83, s. 31; 2001, c. 53, s. 36.