I-3 - Taxation Act

Section 232 Disposition versions

2021-06-02

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  (paragraph repealed);

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property in respect of whose disposition any of sections 851.22.11, 851.22.13 and 851.22.14 applies.

However, the disposition of depreciable property does not give rise to a capital loss and the following dispositions do not give rise to a capital gain:

(a)  the disposition of a cultural property described in the third paragraph, the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use or the disposition of a musical instrument resulting from a gift described in paragraph e of section 710 or in the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1; or

(b)  a deemed disposition, by reason of the application of Division III of Chapter III of Title VII, of a property referred to in subparagraph a of a taxpayer, where the property is the subject of a gift in respect of which section 752.0.10.10.0.1 applies and that gift is made by the taxpayer’s succession to a donee that would be one of the following donees if the disposition were made at the time the succession makes the gift:

i.  an institution or a public authority referred to in subparagraph a of the third paragraph,

ii.  a certified archival centre,

iii.  a recognized museum, or

iv.  an entity referred to in any of paragraphs a to e of the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1.

A cultural property to which subparagraph a of the second paragraph refers is any of the following properties:

(a)  a property which, according to the Canadian Cultural Property Export Review Board, complies with the criterion of significance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51) and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is classified, at the time of disposition, in accordance with the Cultural Heritage Act (chapter P-9.002) and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the subject of a certificate issued by the Conseil du patrimoine culturel du Québec to the effect that it was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; 2006, c. 36, s. 30; 2010, c. 25, s. 22; 2011, c. 1, s. 26; 2011, c. 21, s. 231; 2017, c. 29, s. 54; 2019, c. 14, s. 93; 2021, c. 14, s. 32.

2019-06-19

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  (paragraph repealed);

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property in respect of whose disposition any of sections 851.22.11, 851.22.13 and 851.22.14 applies.

However, the disposition of depreciable property does not give rise to a capital loss and the following dispositions do not give rise to a capital gain:

(a)  the disposition of a cultural property described in the third paragraph, the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use or the disposition of a musical instrument resulting from a gift described in paragraph e of section 710 or in the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1; or

(b)  a deemed disposition, by reason of the application of Division III of Chapter III of Title VII, of a property referred to in subparagraph a of a taxpayer, where the property is the subject of a gift in respect of which section 752.0.10.10.0.1 applies and that gift is made by the taxpayer’s succession to a donee that would be one of the following donees if the disposition were made at the time the succession makes the gift:

i.  an institution or a public authority referred to in subparagraph a of the third paragraph,

ii.  a certified archival centre,

iii.  a recognized museum, or

iv.  an entity referred to in any of paragraphs a to e of the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1.

A cultural property to which subparagraph a of the second paragraph refers is any of the following properties:

(a)  a property which complies with the criteria of significance and importance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51) as determined by the Canadian Cultural Property Export Review Board, and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is classified, at the time of disposition, in accordance with the Cultural Heritage Act (chapter P-9.002) and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the subject of a certificate issued by the Conseil du patrimoine culturel du Québec to the effect that it was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; 2006, c. 36, s. 30; 2010, c. 25, s. 22; 2011, c. 1, s. 26; 2011, c. 21, s. 231; 2017, c. 29, s. 54; 2019, c. 14, s. 93.

2017-12-07

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  incorporeal capital property;

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property in respect of whose disposition any of sections 851.22.11, 851.22.13 and 851.22.14 applies.

However, the disposition of depreciable property does not give rise to a capital loss and the following dispositions do not give rise to a capital gain:

(a)  the disposition of a cultural property described in the third paragraph, the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use or the disposition of a musical instrument resulting from a gift described in paragraph e of section 710 or in the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1; or

(b)  a deemed disposition, by reason of the application of Division III of Chapter III of Title VII, of a property referred to in subparagraph a of a taxpayer, where the property is the subject of a gift in respect of which section 752.0.10.10.0.1 applies and that gift is made by the taxpayer’s succession to a donee that would be one of the following donees if the disposition were made at the time the succession makes the gift:

i.  an institution or a public authority referred to in subparagraph a of the third paragraph,

ii.  a certified archival centre,

iii.  a recognized museum, or

iv.  an entity referred to in any of paragraphs a to e of the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1.

A cultural property to which subparagraph a of the second paragraph refers is any of the following properties:

(a)  a property which complies with the criteria of significance and importance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51) as determined by the Canadian Cultural Property Export Review Board, and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is classified, at the time of disposition, in accordance with the Cultural Heritage Act (chapter P-9.002) and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the subject of a certificate issued by the Conseil du patrimoine culturel du Québec to the effect that it was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; 2006, c. 36, s. 30; 2010, c. 25, s. 22; 2011, c. 1, s. 26; 2011, c. 21, s. 231; 2017, c. 29, s. 54.

2012-10-19

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  incorporeal capital property;

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property in respect of whose disposition any of sections 851.22.11, 851.22.13 and 851.22.14 applies.

However, subject to the fourth paragraph, the disposition of a cultural property described in the third paragraph, the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use or the disposition of a musical instrument resulting from a gift described in paragraph e of section 710 or in the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1 does not give rise to a capital gain and the disposition of depreciable property does not give rise to a capital loss.

A cultural property to which the second paragraph refers is any of the following properties:

(a)  a property which complies with the criteria of significance and importance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51) as determined by the Canadian Cultural Property Export Review Board, and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is classified, at the time of disposition, in accordance with the Cultural Heritage Act (chapter P-9.002) and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the subject of a certificate issued by the Conseil du patrimoine culturel du Québec to the effect that it was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications.

The second paragraph does not apply in respect of a property of the taxpayer that was a gift referred to in section 752.0.10.10 and made to an institution or a public authority referred to in subparagraph a of the third paragraph, to a certified archival centre, to a recognized museum or to an entity referred to in any of paragraphs a to e of the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1, and which was not vested in that donee within the 36-month period following the death of the taxpayer or, if the taxpayer’s legal representative so requests in writing to the Minister before the expiry of such period, within such longer period as the Minister considers reasonable.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; 2006, c. 36, s. 30; 2010, c. 25, s. 22; 2011, c. 1, s. 26; 2011, c. 21, s. 231.

2011-02-17

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  incorporeal capital property;

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property in respect of whose disposition any of sections 851.22.11, 851.22.13 and 851.22.14 applies.

However, subject to the fourth paragraph, the disposition of a cultural property described in the third paragraph, the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use or the disposition of a musical instrument resulting from a gift described in paragraph e of section 710 or in the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1 does not give rise to a capital gain and the disposition of depreciable property does not give rise to a capital loss.

A cultural property to which the second paragraph refers is any of the following properties:

(a)  a property which complies with the criteria of significance and importance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51) as determined by the Canadian Cultural Property Export Review Board, and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is recognized, at the time of disposition, in accordance with section 16 of the Cultural Property Act (chapter B-4) or classified in accordance with sections 24 to 29 of that Act and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the subject of a certificate issued by the Commission des biens culturels du Québec to the effect that it was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications.

The second paragraph does not apply in respect of a property of the taxpayer that was a gift referred to in section 752.0.10.10 and made to an institution or a public authority referred to in subparagraph a of the third paragraph, to a certified archival centre, to a recognized museum or to an entity referred to in any of paragraphs a to e of the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1, and which was not vested in that donee within the 36-month period following the death of the taxpayer or, if the taxpayer’s legal representative so requests in writing to the Minister before the expiry of such period, within such longer period as the Minister considers reasonable.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; 2006, c. 36, s. 30; 2010, c. 25, s. 22; 2011, c. 1, s. 26.

2010-10-27

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  incorporeal capital property;

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property in respect of whose disposition any of sections 851.22.11, 851.22.13 and 851.22.14 applies.

However, subject to the fourth paragraph, the disposition of a cultural property described in the third paragraph, the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use or the disposition of a musical instrument resulting from a gift described in paragraph e of section 710 or in the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1 does not give rise to a capital gain and the disposition of depreciable property does not give rise to a capital loss.

A cultural property to which the second paragraph refers is any of the following properties:

(a)  a property which complies with the criteria of significance and importance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (Revised Statutes of Canada, 1985, chapter C-51) as determined by the Canadian Cultural Property Export Review Board, and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is recognized, at the time of disposition, in accordance with section 16 of the Cultural Property Act (chapter B-4) or classified in accordance with sections 24 to 29 of that Act and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the object of a certificate issued by the Commission des biens culturels du Québec to the effect that it was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications.

The second paragraph does not apply in respect of a property of the taxpayer that was a gift referred to in section 752.0.10.10 and made to an institution or a public authority referred to in subparagraph a of the third paragraph, to a certified archival centre, to a recognized museum or to an entity referred to in any of paragraphs a to e of the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1, and which was not vested in that donee within the 36-month period following the death of the taxpayer or, if the taxpayer’s legal representative so requests in writing to the Minister before the expiry of such period, within such longer period as the Minister considers reasonable.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; 2006, c. 36, s. 30; 2010, c. 25, s. 22.

2006-12-06

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  incorporeal capital property;

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy within the meaning assigned by paragraph e of section 835, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property to the disposition of which section 851.22.11, 851.22.13 or 851.22.14 applies.

However, subject to the fourth paragraph, the disposition of a cultural property described in the third paragraph, the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use or the disposition of a musical instrument resulting from a gift described in paragraph e of section 710 or in the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1 does not give rise to a capital gain and the disposition of depreciable property does not give rise to a capital loss.

A cultural property to which the second paragraph refers is any of the following properties:

(a)  a property which complies with the criteria of significance and importance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (Revised Statutes of Canada, 1985, chapter C-51) as determined by the Canadian Cultural Property Export Review Board, and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is recognized, at the time of disposition, in accordance with section 16 of the Cultural Property Act (chapter B-4) or classified in accordance with sections 24 to 29 of that Act and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the object of a certificate issued by the Commission des biens culturels du Québec to the effect that it was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications.

The second paragraph does not apply in respect of a property of the taxpayer that was a gift referred to in section 752.0.10.10 and made to an institution or a public authority referred to in subparagraph a of the third paragraph, to a certified archival centre, to a recognized museum or to an entity referred to in any of paragraphs a to e of the definition of “total musical instrument gifts” in the first paragraph of section 752.0.10.1, and which was not vested in that donee within the 36-month period following the death of the taxpayer or, if the taxpayer’s legal representative so requests in writing to the Minister before the expiry of such period, within such longer period as the Minister considers reasonable.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; 2006, c. 36, s. 30.

2006-03-01

232. A capital gain or a capital loss arises from the disposition of any property other than the following property:

(a)  incorporeal capital property;

(b)  a timber resource property;

(c)  a Canadian resource property;

(d)  a foreign resource property;

(e)  an insurance policy, including a life insurance policy within the meaning assigned by paragraph e of section 835, except for that part of a life insurance policy in respect of which a policyholder is deemed by section 851.11 to have an interest in a related segregated fund trust contemplated in section 851.2;

(f)  an interest of a beneficiary under an environmental trust; or

(g)  a property to the disposition of which section 851.22.11, 851.22.13 or 851.22.14 applies.

However, the disposition of a cultural property referred to in the third paragraph and the disposition of the bare ownership of such property made in the course of a recognized gift with reserve of usufruct or use shall not give rise to a capital gain and the disposition of depreciable property shall not give rise to a capital loss.

A cultural property to which the second paragraph refers is any of the following properties, except a property referred to in the fourth paragraph:

(a)  a property which complies with the criteria of significance and importance set out in subsection 3 of section 29 of the Cultural Property Export and Import Act (Revised Statutes of Canada, 1985, chapter C-51) as determined by the Canadian Cultural Property Export Review Board, and that has been disposed of to an institution or a public authority in Canada which is, at the time of disposition, designated under subsection 2 of section 32 of that Act for general purposes or for a specified purpose related to that property;

(b)  a property that is recognized, at the time of disposition, in accordance with section 16 of the Cultural Property Act (chapter B-4) or classified in accordance with sections 24 to 29 of that Act and that has been disposed of to an institution or a public authority referred to in subparagraph a; and

(c)  a property that is the object of a certificate issued by the Commission des biens culturels du Québec to the effect that it was acquired by a certified archival centre or an accredited museum in accordance with its acquisition and conservation policy and the directives of the Ministère de la Culture et des Communications(*).

The property to which the third paragraph refers is a property of the taxpayer that was a gift referred to in section 752.0.10.10 and made to an institution or a public authority referred to in subparagraph a of the third paragraph, to a certified archival centre or to an accredited museum, and which was not vested in that donee within the 36-month period following the death of the taxpayer or, if the taxpayer’s legal representative so requests in writing to the Minister before the expiry of such period, within such longer period as the Minister considers reasonable.

1972, c. 23, s. 219; 1975, c. 22, s. 35; 1978, c. 26, s. 39; 1984, c. 15, s. 53; 1985, c. 25, s. 39; 1986, c. 19, s. 40; 1987, c. 67, s. 54; 1996, c. 39, s. 62; 2000, c. 5, s. 293; 2003, c. 9, s. 21; 2005, c. 1, s. 75; [(*): since January 31, 2006, a reference to the Minister of Culture and Communications concerning the national archives of Québec is a reference to Bibliothèque et Archives nationales du Québec: 2004, c. 25, s. 70 and O.C. 1295-2005.].