I-3 - Taxation Act

Section 142 Disposition versions

2021-06-04

142. Where a taxpayer to whom an amount is owing as proceeds of disposition of depreciable property of a prescribed class of the taxpayer, other than a passenger vehicle to which paragraph d.3 of section 99 applies or a zero-emission passenger vehicle to which paragraph d.5 of section 99 applies, establishes that the amount has become a bad debt in a taxation year, there may be deducted, in computing the taxpayer’s income for the year, the lesser of the amount so owing to the taxpayer and the amount by which the capital cost to the taxpayer of that property exceeds the aggregate of the amounts realized by the taxpayer as proceeds of disposition.

However, in the case of a bad debt resulting from the disposition of a timber resource property, the taxpayer may deduct the amount so owing to him.

1972, c. 23, s. 131; 1975, c. 22, s. 15; 1993, c. 16, s. 79; 1995, c. 49, s. 236; 2021, c. 18, s. 28.

2006-03-01

142. Where a taxpayer to whom an amount is owing as the proceeds of disposition of depreciable property of a prescribed class of the taxpayer, other than a passenger vehicle having a cost to the taxpayer in excess of $20,000 or any other amount prescribed for the purposes of paragraph d.3 of section 99, establishes that the amount has become a bad debt in a taxation year, he may deduct in computing his income for the year the lesser of the amount so owing to him and the amount by which the capital cost to him of that property exceeds the aggregate of the amounts realized by him as the proceeds of disposition.

However, in the case of a bad debt resulting from the disposition of a timber resource property, the taxpayer may deduct the amount so owing to him.

1972, c. 23, s. 131; 1975, c. 22, s. 15; 1993, c. 16, s. 79; 1995, c. 49, s. 236.