I-3 - Taxation Act

Section 776.55.1 Disposition versions

2015-10-26

776.55.1. For the purposes of section 776.51, where, during a partnership’s fiscal period that ends in the year, other than a fiscal period the end of which coincides with that of a fiscal period of the partnership to which subsection 1 of section 99 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) applies, the individual’s interest in the partnership is an interest for which an identification number is required to be, or has been, obtained under Book X.1, the following rules apply:

(a)  the individual’s share of allowable capital losses of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year, and

ii.  the individual’s share of allowable capital losses of the partnership for the fiscal period;

(b)  the individual’s share of each loss from a business of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the individual’s share of the loss, and

ii.  the amount by which the aggregate of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period is exceeded by the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property used by the partnership in the business, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year; and

(c)  the individual’s share of losses from property of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the aggregate of the individual’s share of incomes for the fiscal period from properties of the partnership and the amount by which the aggregate of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period is exceeded by the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property held by the partnership for the purpose of earning income from property, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year, and

ii.  the individual’s share of losses from property of the partnership for the fiscal period.

2000, c. 5, s. 178; 2009, c. 5, s. 329; 2015, c. 24, s. 111.

2009-05-15

776.55.1. For the purposes of section 776.51, where, during a partnership’s fiscal period that ends in the year, other than a fiscal period the end of which coincides with that of a fiscal period of the partnership to which subsection 1 of section 99 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) applies, the individual is a limited partner of the partnership or a specified member of the partnership at all times since becoming a member of the partnership, or the individual’s interest in the partnership is an interest for which an identification number is required to be, or has been, obtained under Book X.1, the following rules apply:

(a)  the individual’s share of allowable capital losses of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year, and

ii.  the individual’s share of allowable capital losses of the partnership for the fiscal period;

(b)  the individual’s share of each loss from a business of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the individual’s share of the loss, and

ii.  the amount by which the aggregate of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period is exceeded by the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property used by the partnership in the business, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year; and

(c)  the individual’s share of losses from property of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the aggregate of the individual’s share of incomes for the fiscal period from properties of the partnership and the amount by which the aggregate of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period is exceeded by the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property held by the partnership for the purpose of earning income from property, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year, and

ii.  the individual’s share of losses from property of the partnership for the fiscal period.

2000, c. 5, s. 178; 2009, c. 5, s. 329.

2006-03-01

776.55.1. For the purposes of section 776.51, where, during a partnership’s fiscal period that ends in the year, other than a fiscal period that ends because of the application of the first paragraph of section 601, the individual is a limited partner of the partnership or a specified member of the partnership at all times since becoming a member of the partnership, or the individual’s interest in the partnership is an interest for which an identification number is required to be, or has been, obtained under Book X.1, the following rules apply:

(a)  the individual’s share of allowable capital losses of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year, and

ii.  the individual’s share of allowable capital losses of the partnership for the fiscal period;

(b)  the individual’s share of each loss from a business of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the individual’s share of the loss, and

ii.  the amount by which the aggregate of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period is exceeded by the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property used by the partnership in the business, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year; and

(c)  the individual’s share of losses from property of the partnership for the fiscal period shall be established as if it were equal to the lesser of

i.  the aggregate of the individual’s share of incomes for the fiscal period from properties of the partnership and the amount by which the aggregate of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period is exceeded by the aggregate of all amounts each of which is

(1)  the individual’s share of a taxable capital gain for the fiscal period from the disposition of property held by the partnership for the purpose of earning income from property, other than property acquired by the partnership in a transaction to which the second paragraph of section 614 applies, or

(2)  the individual’s taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person with whom the individual does not deal at arm’s length, does not, or would not, but for paragraph a of section 618 and section 640, have an interest in the partnership throughout the following taxation year, and

ii.  the individual’s share of losses from property of the partnership for the fiscal period.

2000, c. 5, s. 178.