I-3 - Taxation Act

Section 726.20.2 Disposition versions

2013-06-05

726.20.2. An individual other than a trust, in computing his taxable income for a taxation year may deduct, if he was resident in Canada throughout the year and disposed of a resource property, such amount as he may claim not exceeding the least of

(a)  subject to the third paragraph, the amount by which the amount determined under the second paragraph is exceeded by 1/2 of the excess amount that would be computed under paragraph a of section 726.4.10 in respect of the individual at the end of the year if

i.  the only expenses referred to in that paragraph a were expenses in respect of which section 726.4.10.1 applies, and

ii.  the expenses incurred as a consequence of the acquisition, before 31 March 2004, of a flow-through share or of an interest in a partnership following an investment made after 12 June 2003, or an application for a receipt for the preliminary prospectus or an application for an exemption from filing a prospectus made after 12 June 2003, were not referred to in that paragraph a;

(b)  the aggregate of all amounts each of which is the eligible taxable capital gain amount of the individual for the year from the disposition of a resource property;

(c)  the amount that would be determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were resource properties;

(d)  the amount by which the amount determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses exceeds the aggregate of the amount of the net capital losses of the individual in other taxation years deducted under section 729 in computing the individual’s taxable income for the year and the amount deducted under Title VI.5 by the individual in computing the individual’s taxable income for the year;

(e)  (subparagraph repealed).

The amount to which subparagraph a of the first paragraph refers is the aggregate of

(a)  any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that began after 17 October 2000;

(b)  any amount that is the quotient obtained when the amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that includes 28 February 2000 or 17 October 2000, or began after 28 February 2000 and ended before 17 October 2000, is divided by twice the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for that preceding taxation year; and

(c)  2/3 of any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that ended before 28 February 2000.

For the purposes of subparagraph c of the first paragraph, where an individual is deemed to have realized, at any time in a taxation year, a capital gain from the disposition of another capital property under section 262.5, the capital gain is deemed to be a capital gain realized by the individual in the year in respect of the disposition of a resource property.

Where the individual’s taxation year includes 28 February 2000 or 17 October 2000, or begins after 28 February 2000 and ends before 17 October 2000, the following rules apply:

(a)  the reference to the fraction “1/2” in subparagraph a of the first paragraph shall be read as a reference to the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year;

(b)  the reference to the word “twice” in subparagraph b of the second paragraph shall be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year; and

(c)  the reference to the fraction “2/3” in subparagraph c of the second paragraph shall be read as a reference to the fraction obtained by dividing 3/4 by the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year.

1993, c. 19, s. 43; 1995, c. 1, s. 63; 1996, c. 39, s. 192; 2003, c. 2, s. 206; 2006, c. 13, s. 52; 2012, c. 8, s. 70; 2013, c. 10, s. 41.

2012-05-09

726.20.2. An individual other than a trust, in computing his taxable income for a taxation year may deduct, if he was resident in Canada throughout the year and disposed of a resource property, such amount as he may claim not exceeding the least of

(a)  subject to the third paragraph, the amount by which the amount determined under the second paragraph is exceeded by 1/2 of the excess amount that would be computed under paragraph a of section 726.4.10 in respect of the individual at the end of the year if

i.  the only expenses referred to in that paragraph a were expenses in respect of which section 726.4.10.1 applies, and

ii.  the expenses incurred as a consequence of the acquisition, before 31 March 2004, of a flow-through share or of an interest in a partnership following an investment made after 12 June 2003, or an application for a receipt for the preliminary prospectus or an application for an exemption from filing a prospectus made after 12 June 2003, were not referred to in that paragraph a;

(b)  the aggregate of all amounts each of which is the eligible taxable capital gain amount of the individual for the year from the disposition of a resource property,

(c)  the amount that would be determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were resource properties,

(d)  the amount by which the amount determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses exceeds the aggregate of the amount of the net capital losses of the individual in other taxation years deducted under section 729 in computing the individual’s taxable income for the year and the amount deducted under Title VI.5 by the individual in computing the individual’s taxable income for the year;

(e)  (subparagraph repealed).

The amount to which subparagraph a of the first paragraph refers is the aggregate of

(a)  any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that began after 17 October 2000;

(b)  any amount that is the quotient obtained when the amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that includes 28 February 2000 or 17 October 2000, or began after 28 February 2000 and ended before 17 October 2000, is divided by twice the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for that preceding taxation year; and

(c)  2/3 of any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that ended before 28 February 2000.

For the purposes of subparagraph c of the first paragraph, where an individual is deemed to have realized, at any time in a taxation year, a capital gain from another capital property under section 262.5, the capital gain is deemed to be a capital gain realized by the individual in the year in respect of a resource property.

Where the individual’s taxation year includes 28 February 2000 or 17 October 2000, or begins after 28 February 2000 and ends before 17 October 2000, the following rules apply:

(a)  the reference to the fraction “1/2” in subparagraph a of the first paragraph shall be read as a reference to the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year;

(b)  the reference to the word “twice” in subparagraph b of the second paragraph shall be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year; and

(c)  the reference to the fraction “2/3” in subparagraph c of the second paragraph shall be read as a reference to the fraction obtained by dividing 3/4 by the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year.

1993, c. 19, s. 43; 1995, c. 1, s. 63; 1996, c. 39, s. 192; 2003, c. 2, s. 206; 2006, c. 13, s. 52; 2012, c. 8, s. 70.

2006-06-13

726.20.2. An individual other than a trust, in computing his taxable income for a taxation year may deduct, if he was resident in Canada throughout the year and disposed of a resource property, such amount as he may claim not exceeding the least of

(a)  subject to the third paragraph, the amount by which the amount determined under the second paragraph is exceeded by 1/2 of the excess amount that would be computed under paragraph a of section 726.4.10 in respect of the individual at the end of the year if

i.  the only expenses referred to in that paragraph a were expenses in respect of which section 726.4.10.1 applies, and

ii.  the expenses incurred as a consequence of the acquisition, before 31 March 2004, of a flow-through share or of an interest in a partnership following an investment made after 12 June 2003, or an application for a receipt for the preliminary prospectus or an application for an exemption from filing a prospectus made after 12 June 2003, were not referred to in that paragraph a;

(b)  the aggregate of all amounts each of which is the eligible taxable capital gain amount of the individual for the year from the disposition of a resource property,

(c)  the amount that would be determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were resource properties,

(d)  the amount by which the amount determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses exceeds the aggregate of the amount of the net capital losses of the individual in other taxation years deducted under section 729 in computing the individual’s taxable income for the year and the amount deducted under Title VI.5 by the individual in computing the individual’s taxable income for the year;

(e)  (subparagraph repealed).

The amount to which subparagraph a of the first paragraph refers is the aggregate of

(a)  any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that began after 17 October 2000;

(b)  any amount that is the quotient obtained when the amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that includes 28 February 2000 or 17 October 2000, or began after 28 February 2000 and ended before 17 October 2000, is divided by twice the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for that preceding taxation year; and

(c)  2/3 of any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that ended before 28 February 2000.

Where the individual’s taxation year includes 28 February 2000 or 17 October 2000, or begins after 28 February 2000 and ends before 17 October 2000, the following rules apply:

(a)  the reference to the fraction “1/2” in subparagraph a of the first paragraph shall be read as a reference to the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year;

(b)  the reference to the word “twice” in subparagraph b of the second paragraph shall be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year; and

(c)  the reference to the fraction “2/3” in subparagraph c of the second paragraph shall be read as a reference to the fraction obtained by dividing 3/4 by the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year.

1993, c. 19, s. 43; 1995, c. 1, s. 63; 1996, c. 39, s. 192; 2003, c. 2, s. 206; 2006, c. 13, s. 52.

2006-03-01

726.20.2. An individual other than a trust, in computing his taxable income for a taxation year may deduct, if he was resident in Canada throughout the year and disposed of a resource property, such amount as he may claim not exceeding the least of

(a)  subject to the third paragraph, the amount by which 1/2 of the excess that would be referred to in paragraph a of section 726.4.10 in respect of the individual at the end of the year if the only expenses referred to in that paragraph were expenses in respect of which section 726.4.10.1 applies, exceeds the amount determined under the second paragraph;

(b)  the aggregate of all amounts each of which is the eligible taxable capital gain amount of the individual for the year from the disposition of a resource property,

(c)  the amount that would be determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were resource properties,

(d)  the amount by which the amount determined in respect of the individual for the year under paragraph b of section 28 in respect of capital gains and capital losses exceeds the aggregate of the amount of the net capital losses of the individual in other taxation years deducted under section 729 in computing the individual’s taxable income for the year and the amount deducted under Title VI.5 by the individual in computing the individual’s taxable income for the year;

(e)  (paragraph repealed).

The amount to which subparagraph a of the first paragraph refers is the aggregate of

(a)  any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that began after 17 October 2000;

(b)  any amount that is the quotient obtained when the amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that includes 28 February 2000 or 17 October 2000, or began after 28 February 2000 and ended before 17 October 2000, is divided by twice the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for that preceding taxation year; and

(c)  2/3 of any amount that the individual deducted under this section in computing the individual’s taxable income for a preceding taxation year that ended before 28 February 2000.

Where the individual’s taxation year includes 28 February 2000 or 17 October 2000, or begins after 28 February 2000 and ends before 17 October 2000, the following rules apply:

(a)  the reference to the fraction "1/2" in subparagraph a of the first paragraph shall be read as a reference to the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year;

(b)  the reference to the word "twice" in subparagraph b of the second paragraph shall be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year; and

(c)  the reference to the fraction "2/3" in subparagraph c of the second paragraph shall be read as a reference to the fraction obtained by dividing 3/4 by the fraction in paragraphs a to d of section 231.0.1 that applies to the individual for the year.

1993, c. 19, s. 43; 1995, c. 1, s. 63; 1996, c. 39, s. 192; 2003, c. 2, s. 206.