I-3 - Taxation Act

Section 262 Disposition versions

2015-10-21

262. If, because of any fluctuation after 31 December 1971 in the value of one or more foreign currencies relative to Canadian currency, a taxpayer has realized a gain or sustained a loss in a taxation year (other than a gain or loss that would, in the absence of this section, be a capital gain or capital loss to which section 232 or 261.9 applies, or a gain or loss in respect of a transaction or event in respect of shares of the capital stock of the taxpayer), the following rules apply:

(a)  the amount of the gain (to the extent of the amount of that gain that would not, if section 28 were read without reference to “, other than the taxable capital gains from dispositions of property,” in paragraph a of that section and without reference to paragraph b of that section, be included in computing the taxpayer’s income for the year or any other taxation year), is deemed to be a capital gain of the taxpayer for the year from the disposition of currency other than Canadian currency; and

(b)  the amount of the loss (to the extent of the amount of that loss that would not, if section 28 were read without reference to its paragraph b, be deductible in computing the taxpayer’s income for the year or any other taxation year), is deemed to be a capital loss of the taxpayer for the year from the disposition of currency other than Canadian currency.

1972, c. 23, s. 242; 2015, c. 21, s. 152.

2006-03-01

262. When a taxpayer makes a gain or sustains a loss due to any fluctuation in foreign currency in relation to Canadian currency after 1971, his capital gain or capital loss, as the case may be, is equal to the difference between the aggregate capital gains he so makes and the aggregate capital losses he so sustains.

In the case of an individual, any difference less than $200 is deemed nil and any difference greater than $200 shall be reduced by $200.

1972, c. 23, s. 242.