VIII, s. 69, c. 8, s. 171997, c. 25, s. 371999, c. 22, s. 492000, c. 12, s. 142, c. 19, s. 362009, c. 2, s. 422013, c. 34, s. 270, c. 40, s. 592016, c. 7, s. 36
127.41(1)In this section, the Part XII.4 tax credit of a taxpayer for a particular taxation year means the total of(a)all amounts each of which is an amount determined by the formulaA × B/CwhereAis the tax payable under Part XII.4 by a qualifying environmental trust for a taxation year (in this paragraph referred to as the “trust’s year”) that ends in the particular year,Bis the amount, if any, by which the total of all amounts in respect of the trust that were included (otherwise than because of being a member of a partnership) because of the application of subsection 107.3(1) in computing the taxpayer’s income for the particular year exceeds the total of all amounts in respect of the trust that were deducted (otherwise than because of being a member of a partnership) because of the application of subsection 107.3(1) in computing that income, andCis the trust’s income for the trust’s year, computed without reference to subsections 104(4) to 104(31) and sections 105 to 107, and(b)in respect of each partnership of which the taxpayer was a member, the total of all amounts each of which is the amount that can reasonably be considered to be the taxpayer’s share of the relevant credit in respect of the partnership and, for this purpose, the relevant credit in respect of a partnership is the amount that would, if a partnership were a person and its fiscal period were its taxation year, be the Part XII.4 tax credit of the partnership for its taxation year that ends in the particular year.Marginal note:Reduction of Part I tax(2)There may be deducted from a taxpayer’s tax otherwise payable under this Part for a taxation year such amount as the taxpayer claims not exceeding the taxpayer’s Part XII.4 tax credit for the year.Marginal note:Deemed payment of Part I tax(3)There is deemed to have been paid on account of the tax payable under this Part by a taxpayer (other than a taxpayer exempt from such tax) for a taxation year on the taxpayer’s balance-due day for the year, such amount as the taxpayer claims not exceeding the amount, if any, by which(a)the taxpayer’s Part XII.4 tax credit for the yearexceeds(b)the amount deducted under subsection 127.41(2) in computing the taxpayer’s tax payable under this Part for the year.
(a)all amounts each of which is an amount determined by the formulaA × B/CwhereAis the tax payable under Part XII.4 by a qualifying environmental trust for a taxation year (in this paragraph referred to as the “trust’s year”) that ends in the particular year,Bis the amount, if any, by which the total of all amounts in respect of the trust that were included (otherwise than because of being a member of a partnership) because of the application of subsection 107.3(1) in computing the taxpayer’s income for the particular year exceeds the total of all amounts in respect of the trust that were deducted (otherwise than because of being a member of a partnership) because of the application of subsection 107.3(1) in computing that income, andCis the trust’s income for the trust’s year, computed without reference to subsections 104(4) to 104(31) and sections 105 to 107, and(b)in respect of each partnership of which the taxpayer was a member, the total of all amounts each of which is the amount that can reasonably be considered to be the taxpayer’s share of the relevant credit in respect of the partnership and, for this purpose, the relevant credit in respect of a partnership is the amount that would, if a partnership were a person and its fiscal period were its taxation year, be the Part XII.4 tax credit of the partnership for its taxation year that ends in the particular year.
(a)the taxpayer’s Part XII.4 tax credit for the year
(b)the amount deducted under subsection 127.41(2) in computing the taxpayer’s tax payable under this Part for the year.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1995, c. 3, s. 391997, c. 25, s. 381998, c. 19, ss. 34, 148
127.42(1)The following definitions apply in this section.designated provincedesignated provincemeans a province specified by the Minister of Finance for a calendar year. (province déterminée)eligible farming expenseseligible farming expenses, of a taxpayer for a designated province for a taxation year, means the amount determined by the formulaA × BwhereAis(a)nil, if the total of all amounts deducted in the year by the taxpayer in computing income under this Part from farming activities, excluding any deductions arising from inventory adjustments under section 28 and from transactions with persons that do not deal at arm’s length with the taxpayer, is less than $25,000, and(b)in any other case, the total of all amounts deducted in the year by the taxpayer in computing income under this Part from farming activities, excluding any deductions arising from inventory adjustments under section 28 and from transactions with persons that do not deal at arm’s length with the taxpayer; andBis the taxpayer’s relevant proportion for the designated province for the taxation year. (dépenses agricoles admissibles)farming activitiesfarming activitiesmeans a farming business, including or excluding activities prescribed by regulation. (activités agricoles)payment ratepayment rate, for a calendar year for a designated province, means the rate specified by the Minister of Finance for the calendar year for the designated province. (taux de paiement)relevant proportionrelevant proportion, of eligible farming expenses of a taxpayer for a designated province for a taxation year, means(a)if the taxpayer is an individual, the proportion determined by the formulaA ÷ BwhereAis the individual’s income for the year from farming activities that is deemed to have been earned in the year in the designated province in accordance with Part XXVI of theIncome Tax Regulations, andBis the whole of the individual’s income from farming activities for the year;(b)if the taxpayer is a corporation, the proportion determined by the formulaC ÷ DwhereCis the corporation’s taxable income that is deemed to have been earned in the year in the designated province in accordance with Part IV of theIncome Tax Regulations, andDis the whole of the corporation’s taxable income for the year; and(c)if the taxpayer is a partnership, the proportion determined by the formulaE ÷ FwhereEis the partnership’s income for the fiscal period of the partnership from farming activities that would be deemed to have been earned in the year in the designated province, computed in accordance with Part XXVI of theIncome Tax Regulationsas if the partnership were an individual, andFis the whole of the partnership’s income from farming activities for the fiscal period of the partnership. (proportion pertinente)Marginal note:Deemed payment on account of tax(2)A taxpayer (other than a partnership) that files a prescribed form containing prescribed information with their return of income for a taxation year is deemed, on their balance-due day for the year, to have paid on account of their tax payable under this Part for the year, the total of all amounts each of which is an amount, for each designated province and for each calendar year a portion of which falls within the taxation year, determined by the formula(A × B) × (C ÷ D)whereAis the payment rate for the calendar year for the designated province;Bis the taxpayer’s eligible farming expenses for the designated province for the taxation year;Cis the number of days within the taxation year that fall within the calendar year; andDis the number of days in the taxation year.Marginal note:Deemed payment on account of tax — partnership(3)If a taxpayer (other than a partnership) is a member of a partnership at the end of a fiscal period of the partnership that ends in a taxation year of the taxpayer — and the partnership files a prescribed form containing prescribed information for that fiscal period and the taxpayer files a prescribed form containing prescribed information with its return of income for the taxation year — the taxpayer is deemed, on the taxpayer’s balance-due day for the taxation year, to have paid on account of their tax payable under this Part for the year, the total of all amounts each of which is an amount, for each designated province and for each calendar year a portion of which falls within the partnership’s fiscal period, determined by the formula(A × B) × (C ÷ D) × EwhereAis the payment rate for the calendar year for the designated province;Bis the partnership’s eligible farming expenses for the designated province for the fiscal period;Cis the number of days within the fiscal period that fall within the calendar year;Dis the number of days in the fiscal period; andEis the specified proportion of the taxpayer for the fiscal period.Marginal note:Partnerships(4)For the purposes of this section,(a)a taxpayer includes a partnership;(b)the fiscal period of a partnership is deemed to be its taxation year; and(c)if a taxpayer is a member of a particular partnership that is a member of another partnership, the taxpayer is deemed(i)to be a member of the other partnership, and(ii)to have a specified proportion in the other partnership for a fiscal period of the other partnership equal to its specified proportion of the particular partnership — for the last fiscal period of the particular partnership that ends in the fiscal period of the other partnership — multiplied by the particular partnership’s specified proportion of the other partnership for the fiscal period of the other partnership.Marginal note:Authority to specify(5)For the purposes of this section, the Minister of Finance may specify for a calendar year(a)the designated provinces; and(b)the payment rate for a designated province.Marginal note:Payment rate not specified(6)For the purposes of this section, if the Minister of Finance does not specify the payment rate for a designated province under paragraph (5)(b), the payment rate is deemed to be nil.Marginal note:When assistance received(7)For the purposes of this Act, and for greater certainty, an amount that a taxpayer is deemed under subsection (2) or (3) to have paid for a taxation year is assistance received by the taxpayer from a government immediately before the end of the year.Marginal note:Relevant proportion — special rule(8)For purposes of determining the relevant proportion of eligible farming expenses of a taxpayer for a designated province in a taxation year,(a)if the income of an individual or partnership from farming activities for the year is nil, the income for the year from farming activities that is deemed to have been earned in the year in the designated province shall be computed in accordance with Part XXVI of theIncome Tax Regulationsas if the individual or partnership earned $1,000,000 of income from farming activities; and(b)if the taxable income of a corporation is nil, the corporation’s taxable income that is deemed to have been earned in the year in the designated province shall be computed in accordance with Part IV of theIncome Tax Regulationsas if the corporation had taxable income for the year in the amount of $1,000,000.
(a)nil, if the total of all amounts deducted in the year by the taxpayer in computing income under this Part from farming activities, excluding any deductions arising from inventory adjustments under section 28 and from transactions with persons that do not deal at arm’s length with the taxpayer, is less than $25,000, and(b)in any other case, the total of all amounts deducted in the year by the taxpayer in computing income under this Part from farming activities, excluding any deductions arising from inventory adjustments under section 28 and from transactions with persons that do not deal at arm’s length with the taxpayer; and
(a)if the taxpayer is an individual, the proportion determined by the formulaA ÷ BwhereAis the individual’s income for the year from farming activities that is deemed to have been earned in the year in the designated province in accordance with Part XXVI of theIncome Tax Regulations, andBis the whole of the individual’s income from farming activities for the year;(b)if the taxpayer is a corporation, the proportion determined by the formulaC ÷ DwhereCis the corporation’s taxable income that is deemed to have been earned in the year in the designated province in accordance with Part IV of theIncome Tax Regulations, andDis the whole of the corporation’s taxable income for the year; and(c)if the taxpayer is a partnership, the proportion determined by the formulaE ÷ FwhereEis the partnership’s income for the fiscal period of the partnership from farming activities that would be deemed to have been earned in the year in the designated province, computed in accordance with Part XXVI of theIncome Tax Regulationsas if the partnership were an individual, andFis the whole of the partnership’s income from farming activities for the fiscal period of the partnership. (proportion pertinente)
(a)a taxpayer includes a partnership;(b)the fiscal period of a partnership is deemed to be its taxation year; and(c)if a taxpayer is a member of a particular partnership that is a member of another partnership, the taxpayer is deemed(i)to be a member of the other partnership, and(ii)to have a specified proportion in the other partnership for a fiscal period of the other partnership equal to its specified proportion of the particular partnership — for the last fiscal period of the particular partnership that ends in the fiscal period of the other partnership — multiplied by the particular partnership’s specified proportion of the other partnership for the fiscal period of the other partnership.
(i)to be a member of the other partnership, and(ii)to have a specified proportion in the other partnership for a fiscal period of the other partnership equal to its specified proportion of the particular partnership — for the last fiscal period of the particular partnership that ends in the fiscal period of the other partnership — multiplied by the particular partnership’s specified proportion of the other partnership for the fiscal period of the other partnership.
(a)the designated provinces; and(b)the payment rate for a designated province.
(a)if the income of an individual or partnership from farming activities for the year is nil, the income for the year from farming activities that is deemed to have been earned in the year in the designated province shall be computed in accordance with Part XXVI of theIncome Tax Regulationsas if the individual or partnership earned $1,000,000 of income from farming activities; and(b)if the taxable income of a corporation is nil, the corporation’s taxable income that is deemed to have been earned in the year in the designated province shall be computed in accordance with Part IV of theIncome Tax Regulationsas if the corporation had taxable income for the year in the amount of $1,000,000.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2022, c. 5, s. 5
127.43(1)The following definitions apply in this section.assistanceassistancemeans an amount, other than a prescribed amount or an amount deemed under subsection (2) to have been paid, that would be included under paragraph 12(1)(x) in computing an eligible entity’s income for any taxation year if that paragraph were read without reference to subparagraphs 12(1)(x)(v) to (vii). (montant d’aide)eligible entityeligible entity, for a taxation year, means(a)a qualifying corporation for the taxation year;(b)an individual other than a trust; or(c)a partnership. (entité déterminée)qualifying corporationqualifying corporation, for a particular taxation year, means a particular corporation that meets the following conditions:(a)it is a Canadian-controlled private corporation or would be a Canadian-controlled private corporation absent the application of subsection 136(1); and(b)it is the case that$15,000,000 > A + BwhereAis the particular corporation’s taxable capital employed in Canada (in this formula, within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year, andBis the total of all amounts, each of which is the taxable capital employed in Canada of a corporation that is associated in the particular taxation year with the particular corporation for the associated corporation’s last taxation year that ended before the beginning of the particular taxation year. (société admissible)qualifying expenditurequalifying expendituremeans an outlay or expense prescribed by regulation that is made or incurred by an eligible entity during the qualifying period in the course of the eligible entity’s ordinary commercial activities. (dépense admissible)qualifying locationqualifying location, of an eligible entity, means real or immovable property (other than property that is a self-contained domestic establishment, or part of such a self-contained domestic establishment, the land subjacent to the self-contained domestic establishment and such portion of any immediately contiguous land as can reasonably be regarded as contributing to the use and enjoyment of the self-contained domestic establishment as a residence) in Canada used by the eligible entity primarily in the course of its ordinary commercial activities. (emplacement admissible)qualifying periodqualifying periodmeans the period that begins on September 1, 2021 and ends on December 31, 2022. (période d’admissibilité)total per location expensetotal per location expense, for a qualifying location of an eligible entity for a taxation year, means the lesser of(a)the amount determined by the formulaA − BwhereAis the total of all amounts, each of which is a qualifying expenditure of the eligible entity made or incurred in the taxation year in respect of the qualifying location (or, for the first taxation year that ends after 2021, the qualifying expenditures made or incurred in respect of the qualifying location from the start of the qualifying period to the end of that first taxation year), andBis the total of all amounts, each of which is an amount of assistance that(i)the eligible entity has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and(ii)has not been repaid before the end of the taxation year pursuant to a legal obligation to do so; and(b)the amount determined by the formula$10,000 − CwhereCis the total of all amounts, each of which is a qualifying expenditure in respect of the qualifying location and(i)is a qualifying expenditure of the eligible entity, in respect of which an amount under subsection (2) or (3) is deemed to have been paid in a prior taxation year, or(ii)is a qualifying expenditure of another eligible entity that is affiliated during the qualifying period with the eligible entity, in respect of which an amount under subsection (2) or (3) is deemed to have been paid in any taxation year. (dépense totale par emplacement)total ventilation expensetotal ventilation expense, of an eligible entity for a taxation year, means the lesser of(a)the total of all amounts, each of which is a total per location expense for a qualifying location of the eligible entity for the taxation year; and(b)the amount determined by the formula$50,000 × X − YwhereXis(i)100%, unless the eligible entity is affiliated at any time in the qualifying period with one or more other eligible entities that are deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,(ii)a percentage assigned to the eligible entity under an agreement, if(A)the agreement is entered into by the eligible entity and each eligible entity that(I)is affiliated with the eligible entity in the qualifying period, and(II)is deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,(B)the agreement is filed in prescribed form and manner with the Minister by the eligible entity and each eligible entity referred to in clause (A),(C)the agreement assigns, for the purposes of this definition, a percentage in respect of each eligible entity referred to in clause (A), and(D)the total of all the percentages assigned under the agreement does not exceed 100%, and(iii)in any other case, nil, andYis the total of all amounts, each of which is the total ventilation expense of the eligible entity for a prior taxation year in respect of which an amount is deemed to have been paid under subsection (2) or (3). (dépense totale de ventilation)Marginal note:Refundable tax credit(2)An eligible entity (other than a partnership) that files a prescribed form containing prescribed information with its return of income for a taxation year that ends after 2021 is deemed to have, on its balance-due day for the year, paid on account of its tax payable under this Part for the year an amount equal to 25% of its total ventilation expense for the taxation year.Marginal note:Refundable tax credit — partnership(3)If an eligible entity (other than a partnership) is a member of a partnership at the end of a fiscal period of the partnership that ends after 2021 and that ends in a taxation year of the eligible entity — and the partnership files an information return in prescribed form containing prescribed information for that fiscal period and the eligible entity files a prescribed form containing prescribed information with its return of income for the taxation year — then the eligible entity is deemed to have paid, on the eligible entity’s balance-due day for the taxation year on account of the eligible entity’s tax payable under this Part for the taxation year, an amount determined by the formula0.25 × A × BwhereAis the total ventilation expense of the partnership for the fiscal period; andBis the specified proportion of the eligible entity for the fiscal period of the partnership.Marginal note:Partnerships(4)For the purposes of this section,(a)the fiscal period of a partnership is deemed to be its taxation year; and(b)if an eligible entity is a member of a particular partnership that is a member of another partnership, the eligible entity is deemed(i)to be a member of the other partnership, and(ii)to have a specified proportion in the other partnership for a fiscal period of the other partnership equal to its specified proportion of the particular partnership — for the last fiscal period of the particular partnership that ends in the fiscal period of the other partnership — multiplied by the particular partnership’s specified proportion of the other partnership for the fiscal period of the other partnership.Marginal note:When assistance received(5)For the purposes of this Act other than this section, and for greater certainty, an amount that an eligible entity is deemed under subsection (2) or (3) to have paid is assistance received by it from a government immediately before the end of the taxation year to which it relates.Marginal note:Affiliated entities(6)For the purposes of this section, if two eligible entities are affiliated with the same eligible entity, they are deemed to be affiliated with each other.
(a)a qualifying corporation for the taxation year;(b)an individual other than a trust; or(c)a partnership. (entité déterminée)
(a)it is a Canadian-controlled private corporation or would be a Canadian-controlled private corporation absent the application of subsection 136(1); and(b)it is the case that$15,000,000 > A + BwhereAis the particular corporation’s taxable capital employed in Canada (in this formula, within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year, andBis the total of all amounts, each of which is the taxable capital employed in Canada of a corporation that is associated in the particular taxation year with the particular corporation for the associated corporation’s last taxation year that ended before the beginning of the particular taxation year. (société admissible)
(a)the amount determined by the formulaA − BwhereAis the total of all amounts, each of which is a qualifying expenditure of the eligible entity made or incurred in the taxation year in respect of the qualifying location (or, for the first taxation year that ends after 2021, the qualifying expenditures made or incurred in respect of the qualifying location from the start of the qualifying period to the end of that first taxation year), andBis the total of all amounts, each of which is an amount of assistance that(i)the eligible entity has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and(ii)has not been repaid before the end of the taxation year pursuant to a legal obligation to do so; and(b)the amount determined by the formula$10,000 − CwhereCis the total of all amounts, each of which is a qualifying expenditure in respect of the qualifying location and(i)is a qualifying expenditure of the eligible entity, in respect of which an amount under subsection (2) or (3) is deemed to have been paid in a prior taxation year, or(ii)is a qualifying expenditure of another eligible entity that is affiliated during the qualifying period with the eligible entity, in respect of which an amount under subsection (2) or (3) is deemed to have been paid in any taxation year. (dépense totale par emplacement)
(i)the eligible entity has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and(ii)has not been repaid before the end of the taxation year pursuant to a legal obligation to do so; and
(i)is a qualifying expenditure of the eligible entity, in respect of which an amount under subsection (2) or (3) is deemed to have been paid in a prior taxation year, or(ii)is a qualifying expenditure of another eligible entity that is affiliated during the qualifying period with the eligible entity, in respect of which an amount under subsection (2) or (3) is deemed to have been paid in any taxation year. (dépense totale par emplacement)
(a)the total of all amounts, each of which is a total per location expense for a qualifying location of the eligible entity for the taxation year; and(b)the amount determined by the formula$50,000 × X − YwhereXis(i)100%, unless the eligible entity is affiliated at any time in the qualifying period with one or more other eligible entities that are deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,(ii)a percentage assigned to the eligible entity under an agreement, if(A)the agreement is entered into by the eligible entity and each eligible entity that(I)is affiliated with the eligible entity in the qualifying period, and(II)is deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,(B)the agreement is filed in prescribed form and manner with the Minister by the eligible entity and each eligible entity referred to in clause (A),(C)the agreement assigns, for the purposes of this definition, a percentage in respect of each eligible entity referred to in clause (A), and(D)the total of all the percentages assigned under the agreement does not exceed 100%, and(iii)in any other case, nil, andYis the total of all amounts, each of which is the total ventilation expense of the eligible entity for a prior taxation year in respect of which an amount is deemed to have been paid under subsection (2) or (3). (dépense totale de ventilation)
(i)100%, unless the eligible entity is affiliated at any time in the qualifying period with one or more other eligible entities that are deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,(ii)a percentage assigned to the eligible entity under an agreement, if(A)the agreement is entered into by the eligible entity and each eligible entity that(I)is affiliated with the eligible entity in the qualifying period, and(II)is deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,(B)the agreement is filed in prescribed form and manner with the Minister by the eligible entity and each eligible entity referred to in clause (A),(C)the agreement assigns, for the purposes of this definition, a percentage in respect of each eligible entity referred to in clause (A), and(D)the total of all the percentages assigned under the agreement does not exceed 100%, and(iii)in any other case, nil, and
(A)the agreement is entered into by the eligible entity and each eligible entity that(I)is affiliated with the eligible entity in the qualifying period, and(II)is deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,(B)the agreement is filed in prescribed form and manner with the Minister by the eligible entity and each eligible entity referred to in clause (A),(C)the agreement assigns, for the purposes of this definition, a percentage in respect of each eligible entity referred to in clause (A), and(D)the total of all the percentages assigned under the agreement does not exceed 100%, and
(I)is affiliated with the eligible entity in the qualifying period, and(II)is deemed to have paid an amount under subsection (2) in respect of the qualifying period, or, in the case of a partnership, has a member that is deemed to have paid an amount under subsection (3) in respect of the partnership,
(a)the fiscal period of a partnership is deemed to be its taxation year; and(b)if an eligible entity is a member of a particular partnership that is a member of another partnership, the eligible entity is deemed(i)to be a member of the other partnership, and(ii)to have a specified proportion in the other partnership for a fiscal period of the other partnership equal to its specified proportion of the particular partnership — for the last fiscal period of the particular partnership that ends in the fiscal period of the other partnership — multiplied by the particular partnership’s specified proportion of the other partnership for the fiscal period of the other partnership.
(i)to be a member of the other partnership, and(ii)to have a specified proportion in the other partnership for a fiscal period of the other partnership equal to its specified proportion of the particular partnership — for the last fiscal period of the particular partnership that ends in the fiscal period of the other partnership — multiplied by the particular partnership’s specified proportion of the other partnership for the fiscal period of the other partnership.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2022, c. 5, s. 6
(a)the amount, if any, by which(i)the individual’s minimum amount for the year determined under section 127.51exceeds(ii)the individual’s special foreign tax credit determined under section 127.54 for the year, and(b)the amount, if any, required by section 120 to be added to the individual’s tax otherwise payable under this Part for the year.
(i)the individual’s minimum amount for the year determined under section 127.51
(ii)the individual’s special foreign tax credit determined under section 127.54 for the year, and
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 127.51998, c. 19, s. 1492000, c. 19, s. 37
(a)$40,000, in the case of an individual (other than a trust) or a graduated rate estate; and(b)nil, in any other case; and
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1986, c. 55, s. 501988, c. 55, s. 1112014, c. 39, s. 43
127.52(1)Subject to subsection 127.52(2), an individual’s adjusted taxable income for a taxation year is the amount that would be the individual’s taxable income for the year or the individual’s taxable income earned in Canada for the year, as the case may be, if it were computed on the assumption that(a)[Repealed, 1999, c. 22, s. 50(2)](b)the total of all amounts each of which is an amount deductible under paragraph 20(1)(a) or any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of a rental or leasing property (other than an amount included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)) were the lesser of the total of all amounts otherwise so deductible and the amount, if any, by which the total of(i)the total of all amounts each of which is the individual’s income for the year from the renting or leasing of a rental or leasing property owned by the individual or by a partnership, computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f), and(ii)the amount, if any, by which(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of a rental or leasing property owned by the individual or by a partnershipexceeds(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of a rental or leasing property owned by the individual or by a partnershipexceeds the total of all amounts each of which is the individual’s loss for the year from the renting or leasing of a rental or leasing property owned by the individual or by a partnership (other than an amount included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)), computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f);(c)the total of all amounts each of which is an amount deductible under paragraph 20(1)(a) or any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of a film property referred to in paragraph 127.52(1)(w) of Class 10 of Schedule II to theIncome Tax Regulations(other than an amount included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)) were the lesser of the total of all amounts otherwise so deductible by the individual for the year and the amount, if any, by which the total of(i)the total of all amounts each of which is the individual’s income for the year from the renting or leasing of a film property owned by the individual or by a partnership, computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f), and(ii)the amount, if any, by which(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of such a film property owned by the individual or by a partnershipexceeds(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of such a film property owned by the individual or by a partnershipexceeds the total of all amounts each of which is the individual’s loss for the year from such a film property owned by the individual or by a partnership (other than amounts included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)), computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f);(c.1)if, during a partnership’s fiscal period that ends in the year (other than a fiscal period that ends because of subsection 99(1)), the individual’s interest in the partnership is an interest for which an identification number is required to be, or has been, obtained under section 237.1,(i)the individual’s share of allowable capital losses of the partnership for the fiscal period were the lesser of(A)the total of all amounts each of which is the individual’s(I)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 subsection 97(2) applied), or(II)taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year, and(B)the individual’s share of allowable capital losses of the partnership for the fiscal period,(ii)the individual’s share of each loss from a business of the partnership for the fiscal period were the lesser of(A)the individual’s share of the loss, and(B)the amount, if any, by which(I)the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation yearexceeds(II)the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and(iii)the individual’s share of losses from property of the partnership for the fiscal period were the lesser of(A)the total of(I)the individual’s share of incomes for the fiscal period from properties of the partnership, and(II)the amount, if any, by which the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year,exceeds the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and(B)the individual’s share of losses from property of the partnership for the fiscal period;(c.2)where, during a fiscal period of a partnership that ends in the year (other than a fiscal period that ends because of the application of subsection 99(1)),(i)the individual is a limited partner of the partnership, or is a member of the partnership who was a specified member of the partnership at all times since becoming a member of the partnership, or(ii)the partnership owns a rental or leasing property or a film property and the individual is a member of the partnership,the total of all amounts each of which is an amount deductible under any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of the individual’s acquisition of the partnership interest were the lesser of(iii)the total of all amounts otherwise so deductible, and(iv)the total of all amounts each of which is the individual’s share of any income of the partnership for the fiscal period, determined in accordance with subsection 96(1);(c.3)the total of all amounts each of which is an amount deductible in computing the individual’s income for the year in respect of a property for which an identification number is required to be, or has been, obtained under section 237.1 (other than an amount to which any of paragraphs 127.52(1)(b) to 127.52(1)(c.2) applies) were nil;(d)except in respect of dispositions of property occurring before 1986 or to which section 79 applies,(i)the references to the fraction applicable to the individual for the year in each of paragraphs 38(a), (b) and (c) and section 41 were read as a reference to “4/5”, other than in the case of a capital gain from a disposition that is the making of a gift of property to a qualified donee, and(ii)each amount that is designated by a trust for a particular year of the trust in respect of the individual and deemed by subsection 104(21) to be a taxable capital gain for the year of the individual were equal to the amount obtained by the formula4/5(A × 1/B)whereAis the amount so deemed to be a taxable capital gain for the year of the individual, andBis the fraction in paragraph 38(a) applicable to the trust for the particular year of the trust for which the designation is made;(iii)[Repealed, 2013, c. 34, s. 271](e)the total of all amounts deductible under section 65, 66, 66.1, 66.2, 66.21 or 66.4 or under subsection 29(10) or (12) of theIncome Tax Application Rulesin computing the individual’s income for the year were the lesser of the amounts otherwise so deductible by the individual for the year and the total of(i)the individual’s income for the year from royalties in respect of, and such part of the individual’s income, other than royalties, for the year as may reasonably be considered as attributable to, the production of petroleum, natural gas and minerals, determined before deducting those amounts,(i.1)the individual’s income for the year from property, or from the business of selling the product of property, described in Class 43.1 or 43.2 in Schedule II to theIncome Tax Regulations, determined before deducting those amounts, and(ii)all amounts included in computing the individual’s income for the year under section 59;(e.1)the total of all amounts each of which is an amount deductible under any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of a property that is a flow-through share (if the individual is the person to whom the share was issued under an agreement referred to in the definitionflow-through sharein subsection 66(15)), a Canadian resource property or a foreign resource property were the lesser of the total of the amounts otherwise so determined for the year and the amount, if any, by which(i)the total of all amounts each of which is an amount described in subparagraph 127.52(1)(e)(i) or 127.52(1)(e)(ii), determined without reference to paragraphs 20(1)(c) to 20(1)(f),exceeds(ii)the total of all amounts each of which is an amount deductible under section 65, 66, 66.1, 66.2, 66.21 or 66.4 or under subsection 29(10) or (12) of theIncome Tax Application Rulesin computing the individual’s income for the year;(f)subsection 82(1) were read without reference to paragraph 82(1)(b);(g)the total of all amounts deductible under section 104 in computing the income of a trust for the year were equal to the total of(i)the total of all amounts otherwise deductible under that section, and(ii)the total of all amounts each of which is 3/5 of(A)an amount designated by the trust under subsection 104(21) for the year, or(B)that portion of a net taxable capital gain of the trust that may reasonably be considered to(I)be part of an amount included, by virtue of subsection 104(13) or section 105, in computing the income for the year of a non-resident beneficiary of the trust, or(II)have been paid in the year by a trust governed by an employee benefit plan to a beneficiary thereunder;(h)the only amounts deductible under sections 110 to 110.7 in computing the individual’s taxable income for the year or taxable income earned in Canada for the year, as the case may be, were(i)the amounts deducted under any of subsections 110(2), 110.6(2) and (2.1) and 110.7(1),(ii)the amount deducted under paragraph 110(1)(d), not exceeding the total of(A)the amount deducted under paragraph 110(1)(d.01), and(B)2/5 of the amount, if any, by which(I)the amount deducted under paragraph 110(1)(d)exceeds(II)the amount determined under clause (A),(iii)the amount deducted under paragraph 110(1)(d.01),(iv)2/5 of the amounts deducted under any of paragraphs 110(1)(d.1) to (d.3),(v)the amount that would be deductible under paragraph 110(1)(f) if paragraph (d) were applicable in computing the individual’s income for the year, and(vi)the amount deducted under paragraph 110(1)(g);(h.1)the formula in paragraph 110.6(21)(a) were read asA - B(i)in computing the individual’s taxable income for the year or the individual’s taxable income earned in Canada for the year, as the case may be, the only amounts deductible under(i)paragraphs 111(1)(a), 111(1)(c), 111(1)(d) and 111(1)(e) were the lesser of(A)the amount deducted under those paragraphs for the year, and(B)the total of all amounts that would be deductible under those paragraphs for the year if(I)paragraphs (b), (c) and (e) of this subsection, as they read in respect of taxation years that began after 1985 and before 1995, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years,(II)paragraphs (b) to (c.3), (e) and (e.1) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years, and(III)paragraphs (b) to (c.3), (e) and (e.1) of this subsection applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any taxation year that ends after 2011, and(ii)paragraph 111(1)(b) were the lesser of(A)the total of all amounts each of which is an amount that can reasonably be considered to be the amount that the individual would have deducted under paragraph 111(1)(b) had paragraph (d) of this subsection been applicable in computing the amount deductible under paragraph 111(1)(b), and(B)the total of all amounts that would be deductible under that paragraph for the year if(I)paragraph (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that began before 1995,(II)paragraphs (c.1) and (d) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s net capital loss for any of those years, and(III)paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011; and(j)theIncome Tax Application Ruleswere read without reference to section 40 of that Act.Marginal note:Partnerships(2)For the purposes of subsection 127.52(1) and this subsection, any amount deductible under a provision of this Act in computing the income or loss of a partnership for a fiscal period is, to the extent of a member’s share of the partnership’s income or loss, deemed to be deductible by the member under that provision in computing the member’s income for the taxation year in which the fiscal period ends.Marginal note:Specified member of a partnership(2.1)Where it can reasonably be considered that one of the main reasons that a member of a partnership was not a specified member of the partnership at all times since becoming a member of the partnership is to avoid the application of this section to the member’s interest in the partnership, the member is deemed for the purpose of this section to have been a specified member of the partnership at all times since becoming a member of the partnership.Marginal note:Definitions(3)For the purposes of this section,film propertyfilm propertymeans a property described in paragraph (n) of Class 12, or paragraph (w) of Class 10, of Schedule II to theIncome Tax Regulations; (production cinématographique)limited partnerlimited partnerhas the meaning that would be assigned by subsection 96(2.4) if that subsection were read without reference to “if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection 127.52(2.5)) at that time and”; (commanditaire)rental or leasing propertyrental or leasing propertymeans a property that is a rental property or a leasing property for the purpose of section 1100 of theIncome Tax Regulations. (bien de location)residential propertyresidential property[Repealed, 1998, c. 19, s. 150(8)]
(a)[Repealed, 1999, c. 22, s. 50(2)](b)the total of all amounts each of which is an amount deductible under paragraph 20(1)(a) or any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of a rental or leasing property (other than an amount included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)) were the lesser of the total of all amounts otherwise so deductible and the amount, if any, by which the total of(i)the total of all amounts each of which is the individual’s income for the year from the renting or leasing of a rental or leasing property owned by the individual or by a partnership, computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f), and(ii)the amount, if any, by which(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of a rental or leasing property owned by the individual or by a partnershipexceeds(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of a rental or leasing property owned by the individual or by a partnershipexceeds the total of all amounts each of which is the individual’s loss for the year from the renting or leasing of a rental or leasing property owned by the individual or by a partnership (other than an amount included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)), computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f);(c)the total of all amounts each of which is an amount deductible under paragraph 20(1)(a) or any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of a film property referred to in paragraph 127.52(1)(w) of Class 10 of Schedule II to theIncome Tax Regulations(other than an amount included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)) were the lesser of the total of all amounts otherwise so deductible by the individual for the year and the amount, if any, by which the total of(i)the total of all amounts each of which is the individual’s income for the year from the renting or leasing of a film property owned by the individual or by a partnership, computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f), and(ii)the amount, if any, by which(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of such a film property owned by the individual or by a partnershipexceeds(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of such a film property owned by the individual or by a partnershipexceeds the total of all amounts each of which is the individual’s loss for the year from such a film property owned by the individual or by a partnership (other than amounts included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)), computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f);(c.1)if, during a partnership’s fiscal period that ends in the year (other than a fiscal period that ends because of subsection 99(1)), the individual’s interest in the partnership is an interest for which an identification number is required to be, or has been, obtained under section 237.1,(i)the individual’s share of allowable capital losses of the partnership for the fiscal period were the lesser of(A)the total of all amounts each of which is the individual’s(I)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 subsection 97(2) applied), or(II)taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year, and(B)the individual’s share of allowable capital losses of the partnership for the fiscal period,(ii)the individual’s share of each loss from a business of the partnership for the fiscal period were the lesser of(A)the individual’s share of the loss, and(B)the amount, if any, by which(I)the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation yearexceeds(II)the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and(iii)the individual’s share of losses from property of the partnership for the fiscal period were the lesser of(A)the total of(I)the individual’s share of incomes for the fiscal period from properties of the partnership, and(II)the amount, if any, by which the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year,exceeds the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and(B)the individual’s share of losses from property of the partnership for the fiscal period;(c.2)where, during a fiscal period of a partnership that ends in the year (other than a fiscal period that ends because of the application of subsection 99(1)),(i)the individual is a limited partner of the partnership, or is a member of the partnership who was a specified member of the partnership at all times since becoming a member of the partnership, or(ii)the partnership owns a rental or leasing property or a film property and the individual is a member of the partnership,the total of all amounts each of which is an amount deductible under any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of the individual’s acquisition of the partnership interest were the lesser of(iii)the total of all amounts otherwise so deductible, and(iv)the total of all amounts each of which is the individual’s share of any income of the partnership for the fiscal period, determined in accordance with subsection 96(1);(c.3)the total of all amounts each of which is an amount deductible in computing the individual’s income for the year in respect of a property for which an identification number is required to be, or has been, obtained under section 237.1 (other than an amount to which any of paragraphs 127.52(1)(b) to 127.52(1)(c.2) applies) were nil;(d)except in respect of dispositions of property occurring before 1986 or to which section 79 applies,(i)the references to the fraction applicable to the individual for the year in each of paragraphs 38(a), (b) and (c) and section 41 were read as a reference to “4/5”, other than in the case of a capital gain from a disposition that is the making of a gift of property to a qualified donee, and(ii)each amount that is designated by a trust for a particular year of the trust in respect of the individual and deemed by subsection 104(21) to be a taxable capital gain for the year of the individual were equal to the amount obtained by the formula4/5(A × 1/B)whereAis the amount so deemed to be a taxable capital gain for the year of the individual, andBis the fraction in paragraph 38(a) applicable to the trust for the particular year of the trust for which the designation is made;(iii)[Repealed, 2013, c. 34, s. 271](e)the total of all amounts deductible under section 65, 66, 66.1, 66.2, 66.21 or 66.4 or under subsection 29(10) or (12) of theIncome Tax Application Rulesin computing the individual’s income for the year were the lesser of the amounts otherwise so deductible by the individual for the year and the total of(i)the individual’s income for the year from royalties in respect of, and such part of the individual’s income, other than royalties, for the year as may reasonably be considered as attributable to, the production of petroleum, natural gas and minerals, determined before deducting those amounts,(i.1)the individual’s income for the year from property, or from the business of selling the product of property, described in Class 43.1 or 43.2 in Schedule II to theIncome Tax Regulations, determined before deducting those amounts, and(ii)all amounts included in computing the individual’s income for the year under section 59;(e.1)the total of all amounts each of which is an amount deductible under any of paragraphs 20(1)(c) to 20(1)(f) in computing the individual’s income for the year in respect of a property that is a flow-through share (if the individual is the person to whom the share was issued under an agreement referred to in the definitionflow-through sharein subsection 66(15)), a Canadian resource property or a foreign resource property were the lesser of the total of the amounts otherwise so determined for the year and the amount, if any, by which(i)the total of all amounts each of which is an amount described in subparagraph 127.52(1)(e)(i) or 127.52(1)(e)(ii), determined without reference to paragraphs 20(1)(c) to 20(1)(f),exceeds(ii)the total of all amounts each of which is an amount deductible under section 65, 66, 66.1, 66.2, 66.21 or 66.4 or under subsection 29(10) or (12) of theIncome Tax Application Rulesin computing the individual’s income for the year;(f)subsection 82(1) were read without reference to paragraph 82(1)(b);(g)the total of all amounts deductible under section 104 in computing the income of a trust for the year were equal to the total of(i)the total of all amounts otherwise deductible under that section, and(ii)the total of all amounts each of which is 3/5 of(A)an amount designated by the trust under subsection 104(21) for the year, or(B)that portion of a net taxable capital gain of the trust that may reasonably be considered to(I)be part of an amount included, by virtue of subsection 104(13) or section 105, in computing the income for the year of a non-resident beneficiary of the trust, or(II)have been paid in the year by a trust governed by an employee benefit plan to a beneficiary thereunder;(h)the only amounts deductible under sections 110 to 110.7 in computing the individual’s taxable income for the year or taxable income earned in Canada for the year, as the case may be, were(i)the amounts deducted under any of subsections 110(2), 110.6(2) and (2.1) and 110.7(1),(ii)the amount deducted under paragraph 110(1)(d), not exceeding the total of(A)the amount deducted under paragraph 110(1)(d.01), and(B)2/5 of the amount, if any, by which(I)the amount deducted under paragraph 110(1)(d)exceeds(II)the amount determined under clause (A),(iii)the amount deducted under paragraph 110(1)(d.01),(iv)2/5 of the amounts deducted under any of paragraphs 110(1)(d.1) to (d.3),(v)the amount that would be deductible under paragraph 110(1)(f) if paragraph (d) were applicable in computing the individual’s income for the year, and(vi)the amount deducted under paragraph 110(1)(g);(h.1)the formula in paragraph 110.6(21)(a) were read asA - B(i)in computing the individual’s taxable income for the year or the individual’s taxable income earned in Canada for the year, as the case may be, the only amounts deductible under(i)paragraphs 111(1)(a), 111(1)(c), 111(1)(d) and 111(1)(e) were the lesser of(A)the amount deducted under those paragraphs for the year, and(B)the total of all amounts that would be deductible under those paragraphs for the year if(I)paragraphs (b), (c) and (e) of this subsection, as they read in respect of taxation years that began after 1985 and before 1995, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years,(II)paragraphs (b) to (c.3), (e) and (e.1) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years, and(III)paragraphs (b) to (c.3), (e) and (e.1) of this subsection applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any taxation year that ends after 2011, and(ii)paragraph 111(1)(b) were the lesser of(A)the total of all amounts each of which is an amount that can reasonably be considered to be the amount that the individual would have deducted under paragraph 111(1)(b) had paragraph (d) of this subsection been applicable in computing the amount deductible under paragraph 111(1)(b), and(B)the total of all amounts that would be deductible under that paragraph for the year if(I)paragraph (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that began before 1995,(II)paragraphs (c.1) and (d) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s net capital loss for any of those years, and(III)paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011; and(j)theIncome Tax Application Ruleswere read without reference to section 40 of that Act.
(i)the total of all amounts each of which is the individual’s income for the year from the renting or leasing of a rental or leasing property owned by the individual or by a partnership, computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f), and(ii)the amount, if any, by which(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of a rental or leasing property owned by the individual or by a partnershipexceeds(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of a rental or leasing property owned by the individual or by a partnershipexceeds the total of all amounts each of which is the individual’s loss for the year from the renting or leasing of a rental or leasing property owned by the individual or by a partnership (other than an amount included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)), computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f);
(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of a rental or leasing property owned by the individual or by a partnership
(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of a rental or leasing property owned by the individual or by a partnership
(i)the total of all amounts each of which is the individual’s income for the year from the renting or leasing of a film property owned by the individual or by a partnership, computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f), and(ii)the amount, if any, by which(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of such a film property owned by the individual or by a partnershipexceeds(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of such a film property owned by the individual or by a partnershipexceeds the total of all amounts each of which is the individual’s loss for the year from such a film property owned by the individual or by a partnership (other than amounts included in the individual’s share of a loss referred to in paragraph 127.52(1)(c.1)), computed without reference to paragraphs 20(1)(a) and 20(1)(c) to 20(1)(f);
(A)the total of all amounts each of which is the individual’s taxable capital gain for the year from the disposition of such a film property owned by the individual or by a partnership
(B)the total of all amounts each of which is the individual’s allowable capital loss for the year from the disposition of such a film property owned by the individual or by a partnership
(i)the individual’s share of allowable capital losses of the partnership for the fiscal period were the lesser of(A)the total of all amounts each of which is the individual’s(I)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 subsection 97(2) applied), or(II)taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year, and(B)the individual’s share of allowable capital losses of the partnership for the fiscal period,(ii)the individual’s share of each loss from a business of the partnership for the fiscal period were the lesser of(A)the individual’s share of the loss, and(B)the amount, if any, by which(I)the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation yearexceeds(II)the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and(iii)the individual’s share of losses from property of the partnership for the fiscal period were the lesser of(A)the total of(I)the individual’s share of incomes for the fiscal period from properties of the partnership, and(II)the amount, if any, by which the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year,exceeds the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and(B)the individual’s share of losses from property of the partnership for the fiscal period;
(A)the total of all amounts each of which is the individual’s(I)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 subsection 97(2) applied), or(II)taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year, and(B)the individual’s share of allowable capital losses of the partnership for the fiscal period,
(I)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 subsection 97(2) applied), or(II)taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year, and
(A)the individual’s share of the loss, and(B)the amount, if any, by which(I)the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation yearexceeds(II)the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and
(I)the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation yearexceeds(II)the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and
(A)the total of(I)the individual’s share of incomes for the fiscal period from properties of the partnership, and(II)the amount, if any, by which the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year,exceeds the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and(B)the individual’s share of losses from property of the partnership for the fiscal period;
(I)the individual’s share of incomes for the fiscal period from properties of the partnership, and(II)the amount, if any, by which the total of all amounts each of which is the individual’s1share 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 subsection 97(2) applied), or2taxable capital gain for the year from the disposition of the individual’s interest in the partnership if the individual, or a person who does not deal at arm’s length with the individual, does not have an interest in the partnership (otherwise than because of the application of paragraph 98(1)(a) or 98.1(1)(a)) throughout the following taxation year,exceeds the total of all amounts each of which is the individual’s share of an allowable capital loss for the fiscal period, and
(i)the individual is a limited partner of the partnership, or is a member of the partnership who was a specified member of the partnership at all times since becoming a member of the partnership, or(ii)the partnership owns a rental or leasing property or a film property and the individual is a member of the partnership,
(iii)the total of all amounts otherwise so deductible, and(iv)the total of all amounts each of which is the individual’s share of any income of the partnership for the fiscal period, determined in accordance with subsection 96(1);
(i)the references to the fraction applicable to the individual for the year in each of paragraphs 38(a), (b) and (c) and section 41 were read as a reference to “4/5”, other than in the case of a capital gain from a disposition that is the making of a gift of property to a qualified donee, and(ii)each amount that is designated by a trust for a particular year of the trust in respect of the individual and deemed by subsection 104(21) to be a taxable capital gain for the year of the individual were equal to the amount obtained by the formula4/5(A × 1/B)whereAis the amount so deemed to be a taxable capital gain for the year of the individual, andBis the fraction in paragraph 38(a) applicable to the trust for the particular year of the trust for which the designation is made;(iii)[Repealed, 2013, c. 34, s. 271]
(i)the individual’s income for the year from royalties in respect of, and such part of the individual’s income, other than royalties, for the year as may reasonably be considered as attributable to, the production of petroleum, natural gas and minerals, determined before deducting those amounts,(i.1)the individual’s income for the year from property, or from the business of selling the product of property, described in Class 43.1 or 43.2 in Schedule II to theIncome Tax Regulations, determined before deducting those amounts, and(ii)all amounts included in computing the individual’s income for the year under section 59;
(i)the total of all amounts each of which is an amount described in subparagraph 127.52(1)(e)(i) or 127.52(1)(e)(ii), determined without reference to paragraphs 20(1)(c) to 20(1)(f),
(ii)the total of all amounts each of which is an amount deductible under section 65, 66, 66.1, 66.2, 66.21 or 66.4 or under subsection 29(10) or (12) of theIncome Tax Application Rulesin computing the individual’s income for the year;
(i)the total of all amounts otherwise deductible under that section, and(ii)the total of all amounts each of which is 3/5 of(A)an amount designated by the trust under subsection 104(21) for the year, or(B)that portion of a net taxable capital gain of the trust that may reasonably be considered to(I)be part of an amount included, by virtue of subsection 104(13) or section 105, in computing the income for the year of a non-resident beneficiary of the trust, or(II)have been paid in the year by a trust governed by an employee benefit plan to a beneficiary thereunder;
(A)an amount designated by the trust under subsection 104(21) for the year, or(B)that portion of a net taxable capital gain of the trust that may reasonably be considered to(I)be part of an amount included, by virtue of subsection 104(13) or section 105, in computing the income for the year of a non-resident beneficiary of the trust, or(II)have been paid in the year by a trust governed by an employee benefit plan to a beneficiary thereunder;
(I)be part of an amount included, by virtue of subsection 104(13) or section 105, in computing the income for the year of a non-resident beneficiary of the trust, or(II)have been paid in the year by a trust governed by an employee benefit plan to a beneficiary thereunder;
(i)the amounts deducted under any of subsections 110(2), 110.6(2) and (2.1) and 110.7(1),(ii)the amount deducted under paragraph 110(1)(d), not exceeding the total of(A)the amount deducted under paragraph 110(1)(d.01), and(B)2/5 of the amount, if any, by which(I)the amount deducted under paragraph 110(1)(d)exceeds(II)the amount determined under clause (A),(iii)the amount deducted under paragraph 110(1)(d.01),(iv)2/5 of the amounts deducted under any of paragraphs 110(1)(d.1) to (d.3),(v)the amount that would be deductible under paragraph 110(1)(f) if paragraph (d) were applicable in computing the individual’s income for the year, and(vi)the amount deducted under paragraph 110(1)(g);
(A)the amount deducted under paragraph 110(1)(d.01), and(B)2/5 of the amount, if any, by which(I)the amount deducted under paragraph 110(1)(d)exceeds(II)the amount determined under clause (A),
(I)the amount deducted under paragraph 110(1)(d)
(II)the amount determined under clause (A),
(i)paragraphs 111(1)(a), 111(1)(c), 111(1)(d) and 111(1)(e) were the lesser of(A)the amount deducted under those paragraphs for the year, and(B)the total of all amounts that would be deductible under those paragraphs for the year if(I)paragraphs (b), (c) and (e) of this subsection, as they read in respect of taxation years that began after 1985 and before 1995, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years,(II)paragraphs (b) to (c.3), (e) and (e.1) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years, and(III)paragraphs (b) to (c.3), (e) and (e.1) of this subsection applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any taxation year that ends after 2011, and(ii)paragraph 111(1)(b) were the lesser of(A)the total of all amounts each of which is an amount that can reasonably be considered to be the amount that the individual would have deducted under paragraph 111(1)(b) had paragraph (d) of this subsection been applicable in computing the amount deductible under paragraph 111(1)(b), and(B)the total of all amounts that would be deductible under that paragraph for the year if(I)paragraph (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that began before 1995,(II)paragraphs (c.1) and (d) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s net capital loss for any of those years, and(III)paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011; and
(A)the amount deducted under those paragraphs for the year, and(B)the total of all amounts that would be deductible under those paragraphs for the year if(I)paragraphs (b), (c) and (e) of this subsection, as they read in respect of taxation years that began after 1985 and before 1995, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years,(II)paragraphs (b) to (c.3), (e) and (e.1) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years, and(III)paragraphs (b) to (c.3), (e) and (e.1) of this subsection applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any taxation year that ends after 2011, and
(I)paragraphs (b), (c) and (e) of this subsection, as they read in respect of taxation years that began after 1985 and before 1995, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years,(II)paragraphs (b) to (c.3), (e) and (e.1) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years, and(III)paragraphs (b) to (c.3), (e) and (e.1) of this subsection applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any taxation year that ends after 2011, and
(A)the total of all amounts each of which is an amount that can reasonably be considered to be the amount that the individual would have deducted under paragraph 111(1)(b) had paragraph (d) of this subsection been applicable in computing the amount deductible under paragraph 111(1)(b), and(B)the total of all amounts that would be deductible under that paragraph for the year if(I)paragraph (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that began before 1995,(II)paragraphs (c.1) and (d) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s net capital loss for any of those years, and(III)paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011; and
(I)paragraph (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that began before 1995,(II)paragraphs (c.1) and (d) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s net capital loss for any of those years, and(III)paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011; and
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 127.521994, c. 7, Sch