I-3 - Taxation Act

Section 251.2 Disposition versions

2019-06-19

251.2. Where at any time after 22 February 1994 an individual disposes of an interest in or a share of the capital stock of a flow-through entity, the individual’s capital gain otherwise determined for a taxation year from the disposition shall be reduced by such amount as the individual claims, not exceeding the amount determined by the formula

A − B − C.

For the purposes of the formula in the first paragraph,

(a)  A is the exempt capital gains balance of the individual for the year in respect of the entity;

(b)  B is

i.  where the entity made a designation under section 668 in respect of the individual for the year, twice the amount claimed under section 251.3 by the individual for the year in respect of the entity,

ii.  where the entity is a partnership, twice the aggregate of the amounts claimed under section 251.4 by the individual for the year in respect of the entity, and

iii.  in any other case, the amount claimed under section 251.6 by the individual for the year in respect of the entity; and

(c)  C is the aggregate of all reductions under this section in the individual’s capital gains otherwise determined for the year from the disposition of other interests in or shares of the capital stock of the entity.

1996, c. 39, s. 69; 1997, c. 3, s. 71; 2003, c. 2, s. 80; 2019, c. 14, s. 98.

2006-03-01

251.2. Where at any time after 22 February 1994 an individual disposes of an interest in or a share of the capital stock of a flow-through entity, the individual’s capital gain otherwise determined for a taxation year from the disposition shall be reduced by such amount as the individual claims, not exceeding the amount determined by the formula

A − B − C.

For the purposes of the formula in the first paragraph,

(a)  A is the exempt capital gains balance of the individual for the year in respect of the entity;

(b)  B is

i.  if the entity made a designation under section 668 in respect of the individual for the year, and subject to section 251.5.1, twice the amount claimed under section 251.3 by the individual for the year in respect of the entity,

ii.  if the entity is a partnership, and subject to section 251.5.1, twice the aggregate of the amounts claimed under sections 251.4 and 251.5 by the individual for the year in respect of the entity, and

iii.  in any other case, the amount claimed under section 251.6 by the individual for the year in respect of the entity; and

(c)  C is the aggregate of all reductions under this section in the individual’s capital gains otherwise determined for the year from the disposition of other interests in or shares of the capital stock of the entity.

1996, c. 39, s. 69; 1997, c. 3, s. 71; 2003, c. 2, s. 80.