I-3 - Taxation Act

Section 259.1 Disposition versions

2005-05-15

259.1. Where at any time in a taxation year a person or partnership, in this section referred to as the “vendor”, disposes of a specified property and the proceeds of disposition of the property are determined under paragraph a of section 247.2, sections 433 to 451, 454 to 462.0.2, section 518 or 552, paragraph a of section 553.1, the first or the second paragraph of section 557, the second paragraph of section 614, section 619, 625, 631 or 654, subparagraph a of the first paragraph of section 688 or 688.1, paragraph a of section 692.8, subparagraph c of the second paragraph of section 736 or Chapter I of Title I.1 of Book VI, the following rules apply to the person or partnership, in this section referred to as the “transferee”, who acquires or reacquires the property at or immediately after that time:

(a)  the transferee shall deduct after that time in computing the adjusted cost base to the transferee of the property the amount by which the aggregate of all amounts deducted under paragraph b.1 of section 257 in computing, immediately before that time, the adjusted cost base to the vendor of the property, exceeds the amount that would be the vendor’s capital gain for the year from that disposition if this Part were read without reference to subparagraph b of the first paragraph of section 234 and section 638; and

(b)  the transferee shall add after that time, in computing the adjusted cost base to the transferee of the property, the amount determined under paragraph a in respect of that disposition.

1996, c. 39, s. 76; 1997, c. 3, s. 71; 2001, c. 7, s. 33; 2003, c. 2, s. 92; 2004, c. 8, s. 51; 2004, c. 21, s. 70; 2009, c. 5, s. 90.