I-3 - Taxation Act

Section 851.22.7 Disposition versions

2006-03-01

851.22.7. In this division,

“tax basis” of a specified debt obligation at a particular time to a taxpayer means the amount by which the aggregate of the following amounts exceeds the amount referred to in section 851.22.8:

(a)  the cost of the obligation to the taxpayer;

(b)  an amount included under section 92, 123 or 851.22.4.1 or paragraph a of section 851.22.4 in respect of the obligation in computing the taxpayer’s income for a taxation year that began before the particular time;

(c)  subject to section 838, where the taxpayer acquired the obligation in a taxation year ending before 23 February 1994, the part of the amount included in computing the taxpayer’s income for a taxation year ending before 23 February 1994, by which the principal amount of the obligation at the time it was acquired exceeds the cost to the taxpayer of the obligation;

(d)  subject to section 838, where the taxpayer is a life insurer, an amount in respect of the obligation that was deemed by paragraph a of section 830, as it read, before its repeal, in its application to the taxation year 1977, to be a gain for a taxation year ending before 1 January 1978;

(e)  where the obligation is an indexed debt obligation, an amount determined under paragraph a of section 125.0.1 in respect of the obligation and included in computing the taxpayer’s income for a taxation year beginning before the particular time;

(f)  an amount in respect of the obligation that was included in computing the taxpayer’s income for a taxation year ending at or before the particular time in respect of changes in the value of the obligation attributable to the fluctuation in the value of a foreign currency relative to Canadian currency, other than an amount included under paragraph a of section 851.22.4;

(g)  an amount in respect of the obligation that was included under paragraph i of section 87 in computing the taxpayer’s income for a taxation year beginning before the particular time; and

(h)  where the obligation was a capital property of the taxpayer on 22 February 1994, an amount required by paragraph b or c.1 of section 255 to be added in computing the adjusted cost base of the obligation to the taxpayer on that day;

“transition amount” of a taxpayer in respect of the disposition of a specified debt obligation has the meaning assigned by the regulations.

1996, c. 39, s. 235; 2001, c. 7, s. 122.