I-3 - Taxation Act

Section 687 Disposition versions

2009-05-15

687. The cost to a taxpayer of a capital interest in a personal trust or a prescribed trust is deemed to be

(a)  where the taxpayer elects under section 726.9.2 in respect of the interest and the trust does not elect under that section in respect of any property of the trust, equal to the taxpayer’s cost of the interest determined under subparagraph a of the first paragraph of section 726.9.2; and

(b)  in any other case, nil, unless

i.  any part of the interest was acquired by the taxpayer from a person who was the beneficiary in respect of the interest immediately before its acquisition by the taxpayer, or

ii.  the cost of any part of the interest would be determined not to be nil under sections 242 to 247.1, as they read before 1 January 1993, subparagraph c of the second paragraph of section 736 and the third paragraph of that section, paragraph c of section 785.1 or subparagraph c of the first paragraph of section 785.2.

1975, c. 22, s. 189; 1984, c. 15, s. 154; 2000, c. 5, s. 147; 2003, c. 2, s. 171; 2009, c. 5, s. 215.

2006-03-01

687. The cost to a taxpayer of a capital interest in a personal trust or a prescribed trust is deemed to be

(a)  where the taxpayer elects under section 726.9.2 in respect of the interest and the trust does not elect under that section in respect of any property of the trust, equal to the taxpayer’s cost of the interest determined under subparagraph a of the first paragraph of section 726.9.2; and

(b)  in any other case, nil, unless

i.  any part of the interest was acquired by the taxpayer from a person who was the beneficiary in respect of the interest immediately before its acquisition by the taxpayer, or

ii.  the cost of any part of the interest would be determined not to be nil under sections 242 to 247.1, as they read before 1 January 1993, subparagraph c of the second paragraph of section 736 and the third paragraph of that section or paragraph c of section 785.1 or 785.2.

1975, c. 22, s. 189; 1984, c. 15, s. 154; 2000, c. 5, s. 147; 2003, c. 2, s. 171.