I-3 - Taxation Act

Section 851.22.9 Disposition versions

2006-03-01

851.22.9. For the purposes of this division,

(a)  where the amount determined under paragraph c in respect of the disposition of a specified debt obligation by a taxpayer is positive, that amount is the taxpayer’s gain from the disposition of the obligation;

(b)  where the amount determined under paragraph c in respect of the disposition of a specified debt obligation by a taxpayer is negative, that amount expressed as a positive number is the taxpayer’s loss from the disposition of the obligation; and

(c)  the amount referred to in paragraphs a and b in respect of the disposition of a specified debt obligation by a taxpayer is the positive or negative amount determined by the formula

A − (B + C).

For the purposes of the formula in subparagraph c of the first paragraph,

(a)  A is the taxpayer’s proceeds of disposition of the specified debt obligation;

(b)  B is the tax basis of the obligation to the taxpayer immediately before the time of disposition; and

(c)  C is the taxpayer’s transition amount in respect of the disposition of the obligation.

1996, c. 39, s. 235; 2001, c. 7, s. 124.