I-3 - Taxation Act

Section 205 Disposition versions

2015-12-04

205. Where a taxpayer’s chief source of income for a taxation year is neither farming nor a combination of farming and some other source of income that is a subordinate source of income for the taxpayer, the loss from all farming businesses carried on by the taxpayer is deemed to be the aggregate of

(a)  the lesser of the following amounts:

i.  the amount by which the aggregate of the taxpayer’s losses, determined without reference to this division and before any deduction under sections 222 to 230, from all farming businesses carried on by the taxpayer during the year exceeds the aggregate of the taxpayer’s incomes, so determined, of the same nature for the same year, and

ii.  $2,500 plus the lesser of $15,000 and one-half of the amount by which the amount determined under subparagraph i exceeds $2,500; and

(b)  the amount by which the amount that would be computed under subparagraph i of paragraph a, if subparagraph i were read without reference to “and before any deduction under sections 222 to 230”, exceeds the amount computed under that subparagraph.

1972, c. 23, s. 194; 1973, c. 17, s. 19; 1980, c. 13, s. 14; 1990, c. 59, s. 110; 2000, c. 5, s. 51; 2015, c. 36, s. 12.

2006-03-01

205. Where a taxpayer’s chief source of income for a taxation year is neither farming nor a combination of farming and another source of income, the loss from all his farming businesses carried on by him is deemed to be the aggregate of:

(a)  the lesser of:

i.  the amount by which the aggregate of his losses, determined without taking into account this division and before any deduction under sections 222 to 230, from all farming businesses carried on by him during the year exceeds the aggregate of his income, so determined, of the same nature for the same year; and

ii.  $2,500 plus the lesser of $6,250 and one-half of the amount by which the amount determined under subparagraph i exceeds $2,500; and

(b)  the amount by which the amount that would be computed under subparagraph i of paragraph a, if the expression “and before any deduction under sections 222 to 230” was not taken into account, exceeds the amount computed under that subparagraph.

1972, c. 23, s. 194; 1973, c. 17, s. 19; 1980, c. 13, s. 14; 1990, c. 59, s. 110; 2000, c. 5, s. 51.