I-3 - Taxation Act

Section 277.1 Disposition versions

2012-05-09

277.1. Despite any other provision of this Act, if at any time a taxpayer disposes of a remainder interest in immovable property (except as a result of a transaction to which section 459 would otherwise apply or by way of a gift to a qualified donee) to a person or partnership and retains a life estate or an estate pur autre vie (in this division referred to as the “life estate”) in the property, the taxpayer is deemed

(a)  to have disposed at that time of the life estate in the immovable property for proceeds of disposition equal to its fair market value at that time; and

(b)  to have reacquired the life estate immediately after that time at a cost equal to the proceeds of disposition referred to in paragraph a.

1994, c. 22, s. 134; 1995, c. 49, s. 66; 1996, c. 39, s. 88; 1997, c. 3, s. 71; 2005, c. 23, s. 43; 2009, c. 5, s. 94; 2012, c. 8, s. 46.

2005-05-15

277.1. Notwithstanding any other provision of this Act, where at any time a taxpayer disposes of a remainder interest in immovable property, except as a result of a transaction to which section 459 would otherwise apply or by way of a gift to a donee described in the definition of “total charitable gifts”, “total Crown gifts” or “total gifts of qualified property” in the first paragraph of section 752.0.10.1, to a person or partnership and retains a life estate or an estate pur autre vie, in this Division called the “life estate”, in the property, the taxpayer is deemed

(a)  to have disposed at that time of the life estate in the immovable property for proceeds of disposition equal to its fair market value at that time; and

(b)  to have reacquired the life estate immediately after that time at a cost equal to the proceeds of disposition referred to in paragraph a.

1994, c. 22, s. 134; 1995, c. 49, s. 66; 1996, c. 39, s. 88; 1997, c. 3, s. 71; 2005, c. 23, s. 43; 2009, c. 5, s. 94.