I-3 - Taxation Act

Section 141 Disposition versions

2006-03-01

141. A taxpayer may deduct in computing the taxpayer’s income for a taxation year the aggregate of

(a)  all debts owing to the taxpayer that have been included by the taxpayer in computing the taxpayer’s income for the year or a preceding taxation year and that are established by the taxpayer to have become bad debts in the year, and

(b)  all amounts each of which is that part of the amortized cost to the taxpayer at the end of the year of a loan or lending asset, other than a mark-to-market property, as defined in section 851.22.1, that is established in the year by the taxpayer to have become uncollectible and that,

i.  where the taxpayer is an insurer or a taxpayer whose ordinary business includes the lending of money, was made or acquired in the ordinary course of the taxpayer’s business of insurance or the lending of money, or

ii.  where the taxpayer is a financial institution, within the meaning of section 851.22.1, in the year, is a specified debt obligation, as defined in the first paragraph of that section, of the taxpayer.

1972, c. 23, s. 130; 1990, c. 59, s. 84; 1995, c. 49, s. 236; 2001, c. 7, s. 25.