II, s. 181995, c. 21, s. 71998, c. 19, s. 832001, c. 17, s. 182013, c. 40, s. 13(E)2014, c. 39, s. 72016, c. 12, s. 11
29(1)Where a taxpayer has a basic herd of a class of animals and disposes of an animal of that class in the course of carrying on a farming business in a taxation year, if the taxpayer so elects in the taxpayer’s return of income under this Part for the year the following rules apply:(a)there shall be deducted in computing the taxpayer’s basic herd of that class at the end of the year such number as is designated by the taxpayer in the taxpayer’s election, not exceeding the least of(i)the number of animals of that class so disposed of by the taxpayer in that year,(ii)1/10 of the taxpayer’s basic herd of that class on December 31, 1971, and(iii)the taxpayer’s basic herd of that class of animal at the end of the immediately preceding taxation year; and(b)there shall be deducted in computing the taxpayer’s income from the farming business for the taxation year the product obtained when(i)the number determined under paragraph 29(1)(a) in respect of the taxpayer’s basic herd of that class for the yearis multiplied by(ii)the quotient obtained when the fair market value on December 31, 1971 of the taxpayer’s animals of that class on that day is divided by the number of the taxpayer’s animals of that class on that day.Marginal note:Reduction in basic herd(2)Where a taxpayer carries on a farming business in a taxation year and the taxpayer’s basic herd of any class at the end of the immediately preceding year, minus the deduction, if any, required by paragraph 29(1)(a) to be made in computing the taxpayer’s basic herd of that class at the end of the year, exceeds the number of animals of that class owned by the taxpayer at the end of the year,(a)there shall be deducted in computing the taxpayer’s basic herd of that class at the end of the year the number of animals comprising the excess; and(b)there shall be deducted in computing the taxpayer’s income from the farming business for the taxation year the product obtained when(i)the number of animals comprising the excessis multiplied by(ii)the quotient obtained when the fair market value on December 31, 1971 of the taxpayer’s animals of that class on that day is divided by the number of the taxpayer’s animals of that class on that day.Marginal note:Interpretation(3)For the purposes of this section,(a)a taxpayer’sbasic herdof any class of animals at a particular time means such number of the animals of that class that the taxpayer had on hand at the end of his 1971 taxation year as were, for the purpose of assessing the taxpayer’s tax under this Part for that year, accepted by the Minister, as a consequence of an application made by the taxpayer, to be capital properties and not to be stock-in-trade, minus the numbers, if any, required by virtue of this section to be deducted in computing the taxpayer’s basic herd of that class at the end of taxation years of the taxpayer ending before the particular time;(b)class of animalsmeans animals of a particular species, namely, cattle, horses, sheep or swine, that are(i)purebred animals of that species for which a certificate of registration has been issued by a person recognized by breeders in Canada of purebred animals of that species to be the registrar of the breed to which such animals belong, or issued by the Canadian Livestock Records Corporation, or(ii)animals of that species other than purebred animals described in subparagraph 29(3)(b)(i),each of which descriptions in subparagraphs 29(3)(b)(i) and 29(3)(b)(ii) shall be deemed to be of separate classes, except that where the number of the taxpayer’s animals described in subparagraph 29(3)(b)(i) or 29(3)(b)(ii), as the case may be, of a particular species is not greater than 10% of the total number of the taxpayer’s animals of that species that would otherwise be of two separate classes by virtue of this paragraph, the taxpayer’s animals described in subparagraphs 29(3)(b)(i) and 29(3)(b)(ii) of that species shall be deemed to be of a single class; and(c)in determining the number of animals of any class on hand at any time, an animal shall not be included if it was acquired for a feeder operation, and an animal shall be included only if its actual age is not less than,(i)in the case of cattle, 2 years,(ii)in the case of horses, 3 years, and(iii)in the case of sheep or swine, one year,except that 2 animals of a class under the age specified in subparagraph 29(3)(c)(i), 29(3)(c)(ii) or 29(3)(c)(iii), as the case may be, shall be counted as one animal of the age so specified.
(a)there shall be deducted in computing the taxpayer’s basic herd of that class at the end of the year such number as is designated by the taxpayer in the taxpayer’s election, not exceeding the least of(i)the number of animals of that class so disposed of by the taxpayer in that year,(ii)1/10 of the taxpayer’s basic herd of that class on December 31, 1971, and(iii)the taxpayer’s basic herd of that class of animal at the end of the immediately preceding taxation year; and(b)there shall be deducted in computing the taxpayer’s income from the farming business for the taxation year the product obtained when(i)the number determined under paragraph 29(1)(a) in respect of the taxpayer’s basic herd of that class for the yearis multiplied by(ii)the quotient obtained when the fair market value on December 31, 1971 of the taxpayer’s animals of that class on that day is divided by the number of the taxpayer’s animals of that class on that day.
(i)the number of animals of that class so disposed of by the taxpayer in that year,(ii)1/10 of the taxpayer’s basic herd of that class on December 31, 1971, and(iii)the taxpayer’s basic herd of that class of animal at the end of the immediately preceding taxation year; and
(i)the number determined under paragraph 29(1)(a) in respect of the taxpayer’s basic herd of that class for the year
(ii)the quotient obtained when the fair market value on December 31, 1971 of the taxpayer’s animals of that class on that day is divided by the number of the taxpayer’s animals of that class on that day.
(a)there shall be deducted in computing the taxpayer’s basic herd of that class at the end of the year the number of animals comprising the excess; and(b)there shall be deducted in computing the taxpayer’s income from the farming business for the taxation year the product obtained when(i)the number of animals comprising the excessis multiplied by(ii)the quotient obtained when the fair market value on December 31, 1971 of the taxpayer’s animals of that class on that day is divided by the number of the taxpayer’s animals of that class on that day.
(i)the number of animals comprising the excess
(ii)the quotient obtained when the fair market value on December 31, 1971 of the taxpayer’s animals of that class on that day is divided by the number of the taxpayer’s animals of that class on that day.
(a)a taxpayer’sbasic herdof any class of animals at a particular time means such number of the animals of that class that the taxpayer had on hand at the end of his 1971 taxation year as were, for the purpose of assessing the taxpayer’s tax under this Part for that year, accepted by the Minister, as a consequence of an application made by the taxpayer, to be capital properties and not to be stock-in-trade, minus the numbers, if any, required by virtue of this section to be deducted in computing the taxpayer’s basic herd of that class at the end of taxation years of the taxpayer ending before the particular time;(b)class of animalsmeans animals of a particular species, namely, cattle, horses, sheep or swine, that are(i)purebred animals of that species for which a certificate of registration has been issued by a person recognized by breeders in Canada of purebred animals of that species to be the registrar of the breed to which such animals belong, or issued by the Canadian Livestock Records Corporation, or(ii)animals of that species other than purebred animals described in subparagraph 29(3)(b)(i),each of which descriptions in subparagraphs 29(3)(b)(i) and 29(3)(b)(ii) shall be deemed to be of separate classes, except that where the number of the taxpayer’s animals described in subparagraph 29(3)(b)(i) or 29(3)(b)(ii), as the case may be, of a particular species is not greater than 10% of the total number of the taxpayer’s animals of that species that would otherwise be of two separate classes by virtue of this paragraph, the taxpayer’s animals described in subparagraphs 29(3)(b)(i) and 29(3)(b)(ii) of that species shall be deemed to be of a single class; and(c)in determining the number of animals of any class on hand at any time, an animal shall not be included if it was acquired for a feeder operation, and an animal shall be included only if its actual age is not less than,(i)in the case of cattle, 2 years,(ii)in the case of horses, 3 years, and(iii)in the case of sheep or swine, one year,except that 2 animals of a class under the age specified in subparagraph 29(3)(c)(i), 29(3)(c)(ii) or 29(3)(c)(iii), as the case may be, shall be counted as one animal of the age so specified.
(i)purebred animals of that species for which a certificate of registration has been issued by a person recognized by breeders in Canada of purebred animals of that species to be the registrar of the breed to which such animals belong, or issued by the Canadian Livestock Records Corporation, or(ii)animals of that species other than purebred animals described in subparagraph 29(3)(b)(i),
(i)in the case of cattle, 2 years,(ii)in the case of horses, 3 years, and(iii)in the case of sheep or swine, one year,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1 “29”1985, c. 45, s. 126(F)
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1“30”1988, c. 55, s. 15
31(1)If a taxpayer’s chief source of income for a taxation year is neither farming nor a combination of farming and some other source of income that is a subordinate source of income for the taxpayer, then for the purposes of sections 3 and 111 the taxpayer’s loss, if any, for the year from all farming businesses carried on by the taxpayer is deemed to be the total of(a)the lesser of(i)the amount by which the total of the taxpayer’s losses for the year, determined without reference to this section and before making any deduction under section 37, from all farming businesses carried on by the taxpayer exceeds the total of the taxpayer’s incomes for the year, so determined from all such businesses, and(ii)$2,500 plus the lesser of(A)1/2 of the amount by which the amount determined under subparagraph 31(1)(a)(i) exceeds $2,500, and(B)$15,000, and(b)the amount, if any, by which(i)the amount that would be determined under subparagraph (a)(i) if it were read without reference to “and before making any deduction under section 37”,exceeds(ii)the amount determined under subparagraph 31(1)(a)(i).Marginal note:Restricted farm loss(1.1)For the purposes of this Act, a taxpayer’s “restricted farm loss” for a taxation year is the amount, if any, by which(a)the amount determined under subparagraph 31(1)(a)(i) in respect of the taxpayer for the yearexceeds(b)the total of the amount determined under subparagraph 31(1)(a)(ii) in respect of the taxpayer for the year and all amounts each of which is an amount by which the taxpayer’s restricted farm loss for the year is required to be reduced because of section 80.Marginal note:Farming and manufacturing or processing(2)Subsection (1) does not apply to a taxpayer for a taxation year if the taxpayer’s chief source of income for the year is a combination of farming and manufacturing or processing in Canada of goods for sale and all or substantially all output from all farming businesses carried on by the taxpayer is used in the manufacturing or processing.
(a)the lesser of(i)the amount by which the total of the taxpayer’s losses for the year, determined without reference to this section and before making any deduction under section 37, from all farming businesses carried on by the taxpayer exceeds the total of the taxpayer’s incomes for the year, so determined from all such businesses, and(ii)$2,500 plus the lesser of(A)1/2 of the amount by which the amount determined under subparagraph 31(1)(a)(i) exceeds $2,500, and(B)$15,000, and(b)the amount, if any, by which(i)the amount that would be determined under subparagraph (a)(i) if it were read without reference to “and before making any deduction under section 37”,exceeds(ii)the amount determined under subparagraph 31(1)(a)(i).
(i)the amount by which the total of the taxpayer’s losses for the year, determined without reference to this section and before making any deduction under section 37, from all farming businesses carried on by the taxpayer exceeds the total of the taxpayer’s incomes for the year, so determined from all such businesses, and(ii)$2,500 plus the lesser of(A)1/2 of the amount by which the amount determined under subparagraph 31(1)(a)(i) exceeds $2,500, and(B)$15,000, and
(A)1/2 of the amount by which the amount determined under subparagraph 31(1)(a)(i) exceeds $2,500, and(B)$15,000, and
(i)the amount that would be determined under subparagraph (a)(i) if it were read without reference to “and before making any deduction under section 37”,
(ii)the amount determined under subparagraph 31(1)(a)(i).
(a)the amount determined under subparagraph 31(1)(a)(i) in respect of the taxpayer for the year
(b)the total of the amount determined under subparagraph 31(1)(a)(ii) in respect of the taxpayer for the year and all amounts each of which is an amount by which the taxpayer’s restricted farm loss for the year is required to be reduced because of section 80.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 311995, c. 21, s. 82013, c. 40, s. 14
32(1)In computing a taxpayer’s income for a taxation year from the taxpayer’s business as an insurance agent or broker, no amount may be deducted under paragraph 20(1)(m) for the year in respect of unearned commissions from the business, but in computing the taxpayer’s income for the year from the business there may be deducted, as a reserve in respect of such commissions, an amount equal to the lesser of(a)the total of all amounts each of which is that proportion of an amount that has been included in computing the taxpayer’s income for the year or a preceding taxation year as a commission in respect of an insurance contract (other than a life insurance contract) that(i)the number of days in the period provided for in the insurance contract that are after the end of the taxation yearis of(ii)the number of days in that period, and(b)the total of all amounts each of which is the amount that would, but for this subsection, be deductible under paragraph 20(1)(m) for the year in respect of a commission referred to in paragraph 32(1)(a).Marginal note:Reserve to be included(2)There shall be included as income of a taxpayer for a taxation year from a business as an insurance agent or broker, the amount deducted under subsection 32(1) in computing the taxpayer’s income therefrom for the immediately preceding year.Marginal note:Additional reserve(3)In computing a taxpayer’s income for a taxation year ending after 1990 from a business carried on by the taxpayer throughout the year as an insurance agent or broker, there may be deducted as an additional reserve an amount not exceeding(a)where the year ends in 1991, 90%,(b)where the year ends in 1992, 80%,(c)where the year ends in 1993, 70%,(d)where the year ends in 1994, 60%,(e)where the year ends in 1995, 50%,(f)where the year ends in 1996, 40%,(g)where the year ends in 1997, 30%,(h)where the year ends in 1998, 20%,(i)where the year ends in 1999, 10%, and(j)where the year ends after 1999, 0%of the amount, if any, by which(k)the reserve that was deducted by the taxpayer under subsection 32(1) for the taxpayer’s last taxation year ending before 1991exceeds(l)the amount deductible by the taxpayer under subsection 32(1) for the taxpayer’s first taxation year ending after 1990,and any amount so deducted by the taxpayer for a taxation year shall be deemed for the purposes of subsection 32(2) to have been deducted for that year under subsection 32(1).
(a)the total of all amounts each of which is that proportion of an amount that has been included in computing the taxpayer’s income for the year or a preceding taxation year as a commission in respect of an insurance contract (other than a life insurance contract) that(i)the number of days in the period provided for in the insurance contract that are after the end of the taxation yearis of(ii)the number of days in that period, and(b)the total of all amounts each of which is the amount that would, but for this subsection, be deductible under paragraph 20(1)(m) for the year in respect of a commission referred to in paragraph 32(1)(a).
(i)the number of days in the period provided for in the insurance contract that are after the end of the taxation year
(ii)the number of days in that period, and
(a)where the year ends in 1991, 90%,(b)where the year ends in 1992, 80%,(c)where the year ends in 1993, 70%,(d)where the year ends in 1994, 60%,(e)where the year ends in 1995, 50%,(f)where the year ends in 1996, 40%,(g)where the year ends in 1997, 30%,(h)where the year ends in 1998, 20%,(i)where the year ends in 1999, 10%, and(j)where the year ends after 1999, 0%
(k)the reserve that was deducted by the taxpayer under subsection 32(1) for the taxpayer’s last taxation year ending before 1991
(l)the amount deductible by the taxpayer under subsection 32(1) for the taxpayer’s first taxation year ending after 1990,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 321994, c. 7, Sch