I-3 - Taxation Act

Section 175.9 Disposition versions

2017-02-08

175.9. If this section applies because of section 175.7 or 175.8 in respect of a disposition of a particular property,

(a)  the transferor’s loss from the disposition is deemed to be nil; and

(b)  the transferor’s loss from the disposition, determined without reference to this section, is deemed to be a loss of the transferor from a disposition of the particular property at the first time, after the time of disposition,

i.  at which a 30-day period begins throughout which neither the transferor nor a person affiliated with the transferor owns the substituted property, or a property that is identical to the substituted property and that was acquired after the day that is 31 days before the period begins,

ii.  at which the substituted property would, if it were owned by the transferor, be deemed under Chapter I of Title I.1 of Book VI or section 999.1 to have been disposed of by the transferor,

iii.  that is immediately before the transferor is subject to a loss restriction event, or

iv.  at which the winding-up of the transferor begins, other than a winding-up referred to in section 556, where the transferor is a corporation.

For the purposes of subparagraph b of the first paragraph, where a partnership otherwise ceases to exist at any time after the time of disposition,

(a)  the partnership is deemed not to have ceased to exist until the time that is immediately after the first time described in subparagraphs i to iv of subparagraph b; and

(b)  each person who was a member of the partnership immediately before the partnership would, but for this section, have ceased to exist is deemed to remain a member of the partnership, until the time that is immediately after the first time described in subparagraphs i to iv of subparagraph b.

2000, c. 5, s. 46; 2004, c. 8, s. 34; 2017, c. 1, s. 97.

2006-03-01

175.9. If this section applies because of section 175.7 or 175.8 in respect of a disposition of a particular property,

(a)  the transferor’s loss from the disposition is deemed to be nil; and

(b)  the transferor’s loss from the disposition, determined without reference to this section, is deemed to be a loss of the transferor from a disposition of the particular property at the first time, after the time of disposition,

i.  at which a 30-day period begins throughout which neither the transferor nor a person affiliated with the transferor owns the substituted property, or a property that is identical to the substituted property and that was acquired after the day that is 31 days before the period begins,

ii.  at which the substituted property would, if it were owned by the transferor, be deemed under Chapter I of Title I.1 of Book VI or section 999.1 to have been disposed of by the transferor,

iii.  that is immediately before control of the transferor is acquired by a person or group of persons, where the transferor is a corporation, or

iv.  at which the winding-up of the transferor begins, other than a winding-up referred to in section 556, where the transferor is a corporation.

For the purposes of subparagraph b of the first paragraph, where a partnership otherwise ceases to exist at any time after the time of disposition,

(a)  the partnership is deemed not to have ceased to exist until the time that is immediately after the first time described in subparagraphs i to iv of subparagraph b; and

(b)  each person who was a member of the partnership immediately before the partnership would, but for this section, have ceased to exist is deemed to remain a member of the partnership, until the time that is immediately after the first time described in subparagraphs i to iv of subparagraph b.

2000, c. 5, s. 46; 2004, c. 8, s. 34.