I-3 - Taxation Act

Section 142.1 Disposition versions

2019-06-19

142.1. Where an amount is deductible under section 142 in respect of the disposition of a depreciable property to which section 93.19 applied, the amount deductible under section 142 is equal to 3/4 of the amount that would be deductible, but for this section.

1990, c. 59, s. 86; 1995, c. 49, s. 236; 1996, c. 39, s. 47; 2003, c. 2, s. 45; 2004, c. 21, s. 56; 2005, c. 1, s. 57; 2017, c. 29, s. 39; 2019, c. 14, s. 82.

2017-12-07

142.1. A taxpayer who establishes that an amount included in computing an excess referred to in subparagraph b of the second paragraph of section 107 has become a bad debt in a taxation year in respect of one or more dispositions of incorporeal capital property by the taxpayer, shall deduct in computing income for the year the amount determined by the formula

(A + B) − (C + D + E + F + G).

In the formula provided for in the first paragraph,

(a)  A is the lesser of

i.  1/2 of the aggregate of all amounts each of which is such an amount that was so established by the taxpayer to have become a bad debt in the year or a preceding taxation year, and

ii.  the aggregate of all amounts each of which is an amount that would be determined under section 105.2 for the year or for a preceding taxation year that ends after 27 February 2000, if the formula provided for in the first paragraph of that section were read without reference to D;

(b)  B is the amount by which 3/4 of the aggregate of all amounts each of which is such an amount that was so established by the taxpayer to have become a bad debt in the year or a preceding taxation year exceeds the aggregate of

i.  3/2 of the amount by which the amount determined under subparagraph a exceeds the portion of that amount that is included therein by reason of the application of subparagraph ii of that subparagraph in respect of taxation years that end after 27 February 2000 but before 18 October 2000, and

ii.  9/8 of the portion of the amount determined under subparagraph a that is included therein by reason of the application of subparagraph ii of that subparagraph in respect of taxation years that end after 27 February 2000 but before 18 October 2000;

(c)  C is the aggregate of all amounts each of which is an amount determined under any of sections 105, 105.3 and 105.4, as it read before being repealed, for the year or a preceding taxation year and in respect of which a deduction can reasonably be considered to have been claimed by the taxpayer under Title VI.5 of Book IV;

(d)  D is 2/3 of the aggregate of all amounts each of which is an amount determined in respect of the taxpayer under subparagraph d of the second paragraph of section 105.2 for the year or a preceding taxation year that ends after 17 October 2000;

(e)  E is 8/9 of the aggregate of all amounts each of which is an amount determined in respect of the taxpayer under subparagraph d of the second paragraph of section 105.2 for the year or a preceding taxation year that ends after 27 February 2000 but before 18 October 2000;

(f)  F is the aggregate of all amounts each of which is an amount determined in respect of the taxpayer under subparagraph d of the second paragraph of section 105.2 for a preceding taxation year that ends before 28 February 2000; and

(g)  G is the aggregate of all amounts each of which is an amount deducted by the taxpayer under this section for a preceding taxation year.

1990, c. 59, s. 86; 1995, c. 49, s. 236; 1996, c. 39, s. 47; 2003, c. 2, s. 45; 2004, c. 21, s. 56; 2005, c. 1, s. 57; 2017, c. 29, s. 39.

2006-03-01

142.1. A taxpayer who establishes that an amount included in computing an excess referred to in subparagraph b of the second paragraph of section 107 has become a bad debt in a taxation year in respect of one or more dispositions of incorporeal capital property by the taxpayer, shall deduct in computing income for the year the amount determined by the formula

(A + B) − (C + D + E + F + G).

In the formula provided for in the first paragraph,

(a)  A is the lesser of

i.  1/2 of the aggregate of all amounts each of which is such an amount that was so established by the taxpayer to have become a bad debt in the year or a preceding taxation year, and

ii.  the aggregate of all amounts each of which is an amount that would be determined under section 105.2 for the year or for a preceding taxation year that ends after 27 February 2000, if the formula provided for in the first paragraph of that section were read without reference to D;

(b)  B is the amount by which 3/4 of the aggregate of all amounts each of which is such an amount that was so established by the taxpayer to have become a bad debt in the year or a preceding taxation year exceeds the aggregate of

i.  3/2 of the amount by which the amount determined under subparagraph a exceeds the portion of that amount that is included therein by reason of the application of subparagraph ii of that subparagraph in respect of taxation years that end after 27 February 2000 but before 18 October 2000, and

ii.  9/8 of the portion of the amount determined under subparagraph a that is included therein by reason of the application of subparagraph ii of that subparagraph in respect of taxation years that end after 27 February 2000 but before 18 October 2000;

(c)  C is the aggregate of all amounts each of which is an amount determined under any of sections 105, 105.3 and 105.4 for the year or a preceding taxation year and in respect of which a deduction can reasonably be considered to have been claimed by the taxpayer under Title VI.5 of Book IV;

(d)  D is 2/3 of the aggregate of all amounts each of which is an amount determined in respect of the taxpayer under subparagraph d of the second paragraph of section 105.2 for the year or a preceding taxation year that ends after 17 October 2000;

(e)  E is 8/9 of the aggregate of all amounts each of which is an amount determined in respect of the taxpayer under subparagraph d of the second paragraph of section 105.2 for the year or a preceding taxation year that ends after 27 February 2000 but before 18 October 2000;

(f)  F is the aggregate of all amounts each of which is an amount determined in respect of the taxpayer under subparagraph d of the second paragraph of section 105.2 for a preceding taxation year that ends before 28 February 2000; and

(g)  G is the aggregate of all amounts each of which is an amount deducted by the taxpayer under this section for a preceding taxation year.

1990, c. 59, s. 86; 1995, c. 49, s. 236; 1996, c. 39, s. 47; 2003, c. 2, s. 45; 2004, c. 21, s. 56; 2005, c. 1, s. 57.