I-3 - Taxation Act

Section 234.1 Disposition versions

2017-12-07

234.1. In computing the amount that a taxpayer may deduct as a reserve under subparagraph b of the first paragraph of section 234 in computing the taxpayer’s gain from the disposition of a property, that subparagraph is to be read as if “1/5” and “4” were replaced by “1/10” and “9”, respectively, if

(a)  the property was disposed of by the taxpayer to the taxpayer’s child;

(b)  that child was resident in Canada immediately before the disposition; and

(c)  that property was, immediately before the disposition,

i.  land in Canada or a depreciable property in Canada of a prescribed class that was used by the taxpayer or the spouse, a child or the father or mother of the taxpayer in carrying on a farming or fishing business in Canada,

ii.  a share of the capital stock of a family farm or fishing corporation of the taxpayer, within the meaning of subparagraph a.2 of the first paragraph of section 451, or an interest in a family farm or fishing partnership of the taxpayer, within the meaning of subparagraph h of that paragraph, or

iii.  a qualified small business corporation share of the taxpayer within the meaning of section 726.6.1, or

iv.  (subparagraph repealed).

1984, c. 15, s. 55; 1987, c. 67, s. 56; 1997, c. 3, s. 71; 1997, c. 14, s. 53; 2004, c. 8, s. 44; 2007, c. 12, s. 43; 2010, c. 5, s. 26; 2017, c. 29, s. 55.

2010-04-20

234.1. In computing the amount that a taxpayer may deduct as a reserve under subparagraph b of the first paragraph of section 234 in computing the taxpayer’s gain from the disposition of a property, that subparagraph is to be read as if “1/5” and “4” were replaced by “1/10” and “9”, respectively, if

(a)  the property was disposed of by the taxpayer to the taxpayer’s child;

(b)  that child was resident in Canada immediately before the disposition; and

(c)  that property was, immediately before the disposition,

i.  land in Canada or a depreciable property in Canada of a prescribed class that was used by the taxpayer or the spouse, a child or the father or mother of the taxpayer in carrying on a farming or fishing business in Canada,

ii.  a share of the capital stock of a family farm corporation of the taxpayer within the meaning of subparagraph a of the first paragraph of section 451 or an interest in a family farm partnership of the taxpayer within the meaning of subparagraph f of that paragraph,

iii.  a qualified small business corporation share of the taxpayer within the meaning of section 726.6.1, or

iv.  a share of the capital stock of a family fishing corporation of the taxpayer within the meaning of subparagraph a.1 of the first paragraph of section 451 or an interest in a family fishing partnership of the taxpayer within the meaning of subparagraph g of that first paragraph.

1984, c. 15, s. 55; 1987, c. 67, s. 56; 1997, c. 3, s. 71; 1997, c. 14, s. 53; 2004, c. 8, s. 44; 2007, c. 12, s. 43; 2010, c. 5, s. 26.

2007-11-07

234.1. In computing the amount that a taxpayer may claim as a reserve under subparagraph b of the first paragraph of section 234 in computing the taxpayer’s gain from the disposition of a property, that subparagraph is to be read as if “1/5” and “4” were replaced by “1/10” and “9”, respectively, if

(a)  the property was disposed of by the taxpayer to the taxpayer’s child;

(b)  that child was resident in Canada immediately before the disposition; and

(c)  that property was, immediately before the disposition,

i.  land in Canada or a depreciable property in Canada of a prescribed class that was used by the taxpayer or the spouse, a child or the father or mother of the taxpayer in carrying on a farming or fishing business in Canada,

ii.  a share of the capital stock of a family farm corporation of the taxpayer within the meaning of subparagraph a of the first paragraph of section 451 or an interest in a family farm partnership of the taxpayer within the meaning of subparagraph f of that paragraph,

iii.  a qualified small business corporation share of the taxpayer within the meaning of section 726.6.1, or

iv.  a share of the capital stock of a family fishing corporation of the taxpayer within the meaning of subparagraph a.1 of the first paragraph of section 451 or an interest in a family fishing partnership of the taxpayer within the meaning of subparagraph g of that first paragraph.

1984, c. 15, s. 55; 1987, c. 67, s. 56; 1997, c. 3, s. 71; 1997, c. 14, s. 53; 2004, c. 8, s. 44; 2007, c. 12, s. 43.

2006-03-01

234.1. In computing the amount that a taxpayer may claim as a reserve under subparagraph b of the first paragraph of section 234, that subparagraph shall be read as if the references therein to "1/5" and "4" were references to "1/10" and "9" respectively where the property referred to in that section is property that the taxpayer disposed of to the taxpayer’s child, who was resident in Canada immediately before the disposition, and was

(a)  any land in Canada or depreciable property in Canada of a prescribed class that was, immediately before the disposition used by the taxpayer, his spouse, or any of his children in the business of farming;

(b)  immediately before the disposition, a share of the capital stock of a family farm corporation of the taxpayer within the meaning of subparagraph a of the first paragraph of section 451 or an interest in a family farm partnership of the taxpayer within the meaning of subparagraph f of that paragraph; or

(c)  immediately before the disposition, a share of the capital stock of a small business corporation.

1984, c. 15, s. 55; 1987, c. 67, s. 56; 1997, c. 3, s. 71; 1997, c. 14, s. 53; 2004, c. 8, s. 44.