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B is the amount of the payment, and
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C is the amount of the proceeds of
disposition of the security.
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(7) Subsections (1), (3) and (6) apply to
the 2000 and subsequent taxation years
except that, for the 2000 taxation year,
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(a) the reference to the fraction ``1/2'' in
the portion of paragraph 110(1)(d) of the
Act before subparagraph 110(1)(d)(i), as
enacted by subsection (1), shall be read as
a reference to
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(i) the fraction ``1/4'', if the
transaction, event or circumstance as a
result of which a benefit is deemed by
subsection 7(1) of the Act, as enacted
by subsection 2(1), to have been
received by a taxpayer occurred before
February 28, 2000, and
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(ii) the fraction ``1/3'', if the
transaction, event or circumstance as a
result of which a benefit is deemed by
subsection 7(1) of the Act, as enacted
by subsection 2(1), to have been
received by a taxpayer occurred after
February 27, 2000 and before October
18, 2000; and
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(b) the reference to the fraction ``1/4'' in
the portion of paragraph 110(1)(d.01) of
the Act before subparagraph
110(1)(d.01)(i), as enacted by subsection
(3), shall be read as a reference to the
fraction ``1/3'' if the transaction, event or
circumstance as a result of which a
benefit is deemed by subsection 7(1) of
the Act, as enacted by subsection 2(1), to
have been received by a taxpayer
occurred after February 27, 2000 and
before October 18, 2000.
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(8) Subsections (2) and (5) apply to the
1998 and subsequent taxation years.
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(9) Subsection (4) applies in respect of
dispositions and exchanges that occur after
February 27, 2000 except that, for
dispositions and exchanges that occurred
after February 27, 2000 and before October
18, 2000, the reference to the fraction ``1/2''
in paragraphs 110(1)(d.1) to (d.3) of the Act,
as enacted by subsection (4), shall be read as
a reference to the fraction ``1/3''.
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85. (1) The portion of paragraph
110.1(1)(d) of the Act before subparagraph
(i) is replaced by the following:
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| Ecological
gifts
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(d) the total of all amounts each of which is
the fair market value of a gift of land,
including a servitude for the use and benefit
of a dominant land, a covenant or an
easement, the fair market value of which is
certified by the Minister of the
Environment and that is certified by that
Minister, or by a person designated by that
Minister, to be ecologically sensitive land,
the conservation and protection of which is,
in the opinion of that Minister, or that
person, important to the preservation of
Canada's environmental heritage, which
gift was made by the corporation in the year
or in any of the five preceding taxation
years to
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(2) Subsection 110.1(2) of the Act is
replaced by the following:
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| Proof of gift
|
(2) A gift shall not be included for the
purpose of determining a deduction under
subsection (1) unless the making of the gift is
proven by filing with the Minister
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(a) a receipt for the gift that contains
prescribed information;
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(b) in the case of a gift described in
paragraph (1)(c), the certificate issued
under subsection 33(1) of the Cultural
Property Export and Import Act; and
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(c) in the case of a gift described in
paragraph (1)(d), both certificates referred
to in that paragraph.
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(3) The portion of subsection 110.1(3) of
the Act after paragraph (b) is replaced by
the following:
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such amount, not greater than the fair
market value otherwise determined and not
less than the adjusted cost base to the
corporation of the property at that time, as the
corporation designates in its return of income
under section 150 for the year in which the gift
is made is, if the making of the gift is proven
by filing with the Minister a receipt containing
prescribed information, deemed to be its
proceeds of disposition of the property and,
for the purposes of subsection (1), the fair
market value of the gift made by the
corporation.
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(4) Subsection 110.1(5) of the Act is
replaced by the following:
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| Ecological
gifts
|
(5) For the purposes of applying
subparagraph 69(1)(b)(ii) , section 207.31 and
this section in respect of a gift described in
paragraph (1)(d) that is made by a taxpayer
and that is a servitude, covenant or easement
to which land is subject, the greater of
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(a) the fair market value otherwise
determined of the gift , and
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(b) the amount by which the fair market
value of the land is reduced as a result of the
making of the gift
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is deemed to be the fair market value (or, for
the purpose of subsection (3), the fair market
value otherwise determined) of the gift at the
time the gift was made and, subject to
subsection (3), to be the taxpayer's proceeds
of disposition of the gift.
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(5) Subsection 110.1(5) of the Act, as
enacted by subsection (4), is replaced by the
following:
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| Ecological
gifts
|
(5) For the purposes of applying
subparagraph 69(1)(b)(ii), this section and
section 207.31 in respect of a gift described in
paragraph (1)(d) that is made by a taxpayer,
the amount that is the fair market value (or, for
the purpose of subsection (3), the fair market
value otherwise determined) of the gift at the
time the gift was made and, subject to
subsection (3), the taxpayer's proceeds of
disposition of the gift, is deemed to be the
amount determined by the Minister of the
Environment to be
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(a) where the gift is land , the fair market
value of the gift; or
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(b) where the gift is a servitude, covenant or
easement to which land is subject, the
greater of
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(i) the fair market value otherwise
determined of the gift, and
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(ii) the amount by which the fair market
value of the land is reduced as a result of
the making of the gift.
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(6) Subsections (1), (2) and (5) apply in
respect of gifts made after February 27,
2000, except that subsection 110.1(2) of the
Act, as enacted by subsection (2), shall be
read without reference to paragraph
110.1(2)(b) in respect of gifts made before
December 21, 2000.
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(7) Subsection (3) applies in respect of
gifts made after February 27, 1995.
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(8) Subsection (4) applies in respect of
gifts made after February 27, 1995 and
before February 28, 2000.
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86. (1) Subparagraph (a)(ii) of the
definition ``investment expense'' in
subsection 110.6(1) of the Act is replaced by
the following:
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(ii) paragraph 20(1)(j) or subsection
65(1), 66(4), 66.1(3), 66.2(2), 66.21(4)
or 66.4(2),
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(2) Paragraph (d) of the definition
``investment expense'' in subsection
110.6(1) of the Act is replaced by the
following:
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(d) 50% of the total of all amounts each of
which is an amount deducted under
subsection 66(4), 66.1(3), 66.2(2), 66.21(4)
or 66.4(2) in computing the individual's
income for the year in respect of expenses
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(i) incurred and renounced under
subsection 66(12.6), (12.601), (12.62) or
(12.64) by a corporation, or
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(ii) incurred by a partnership of which the
individual was a specified member in the
fiscal period of the partnership in which
the expense was incurred, and
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(3) Paragraph 110.6(2)(a) of the Act is
replaced by the following:
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(a) the amount determined by the formula
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[$250,000 - (A + B + C + D)] x E
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A is the total of all amounts each of which
is an amount deducted under this
section in computing the individual's
taxable income for a preceding taxation
year that ended before 1988,
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B is the total of all amounts each of which
is
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(i) 3/4 of an amount deducted under
this section in computing the
individual's taxable income for a
preceding taxation year that ended
after 1987 and before 1990 (other than
amounts deducted under this section
for a taxation year in respect of an
amount that was included in
computing an individual's income for
that year because of subparagraph
14(1)(a)(v) as that subparagraph
applied for taxation years that ended
before February 28, 2000), or
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(ii) 3/4 of an amount deducted under
this section in computing the
individual's taxable income for a
preceding taxation year that began
after February 27, 2000 and ended
before October 18, 2000,
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C is 2/3 of the total of all amounts each of
which is an amount deducted under this
section in computing the individual's
taxable income
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(i) for a preceding taxation year that
ended after 1989 and before February
28, 2000, or
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(ii) in respect of an amount that was
included because of subparagraph
14(1)(a)(v) (as that subparagraph
applied for taxation years that ended
before February 28, 2000) in
computing the individual's income for
a taxation year that began after 1987
and ended before 1990, and
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D is the product obtained when the
reciprocal of the fraction determined for
E that applied to the taxpayer for a
preceding taxation year that began
before and included either February 28,
2000 or October 17, 2000 is multiplied
by the amount deducted under this
subsection in computing the
individual's taxable income for that
preceding year,
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(i) in the case of a taxation year that
includes either February 28, 2000 or
October 17, 2000, the amount
determined by the formula
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2 x (F + G)/H
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F is the amount deemed by
subsection 14(1.1) to be a taxable capital gain
of the taxpayer for the taxation year;
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G is the amount by which the
amount determined in respect of the taxpayer
for the year under paragraph 3(b) exceeds the
amount determined for F; and
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H is the total of
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(A) the amount deemed by
subsection 14(1.1) to be a taxable
capital gain of the taxpayer for the
taxation year multiplied by
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(I) where that amount is
determined by reference to
paragraph 14(1.1)(a), the
reciprocal of the fraction
obtained by multiplying the
fraction 3/4 by the fraction in
paragraph 14(1)(b) that applies to
the taxpayer for the taxation year,
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(II) where that amount is
determined by reference to
paragraph 14(1.1)(b), and the
taxation year does not end after
February 27, 2000 and before
October 18, 2000, 2, and
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(III) where that amount is
determined by reference to
paragraph 14(1.1)(b), and the
taxation year ends after February
27, 2000 and before October 18,
2000, 3/2, and
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(B) the amount determined for G
multiplied by the reciprocal of the
fraction in paragraph 38(a) that
applies to the taxpayer for the
taxation year; and
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(ii) in any other case, 1,
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(4) Paragraph 110.6(2.1)(a) of the Act is
replaced by the following:
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(a) the amount determined by the formula
in paragraph (2)(a) in respect of the
individual for the year ,
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(5) Subsection 110.6(4) of the Act is
replaced by the following:
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| Maximum
capital gains
deduction
|
(4) Notwithstanding subsection (2) and
(2.1), the total amount that may be deducted
under this section in computing an
individual's income for a taxation year shall
not exceed the amount determined by the
formula in paragraph (2)(a) in respect of the
individual for the year.
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(6) The portion of subsection 110.6(12) of
the Act before paragraph (a) is replaced by
the following:
|
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| Trust
deduction
|
(12) Notwithstanding any other provision
of this Act, a trust described in paragraph
104(4)(a) or (a.1) (other than a trust that
elected under subsection 104(5.3), an alter
ego trust or a joint spousal or common-law
partner trust ) may, in computing its taxable
income for its taxation year that includes the
day determined under paragraph 104(4)(a) or
(a.1), as the case may be, in respect of the trust,
deduct under this section an amount equal to
the least of
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(7) Paragraph 110.6(12)(c) of the Act is
replaced by the following:
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(c) the amount, if any, by which the amount
determined by the formula in paragraph
(2)(a) in respect of the taxpayer's spouse or
common-law partner for the taxation year
in which that spouse or common-law
partner died exceeds the amount deducted
under this section for that taxation year by
that spouse or common-law partner .
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(8) Subsections (1) and (2) apply to
taxation years that begin after 2000.
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(9) Subsections (3) to (5) apply to taxation
years that end after February 27, 2000.
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(10) Subsection (6) applies to the 2000
and subsequent taxation years.
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(11) Subsection (7) applies to taxation
years that end after February 27, 2000,
except that the amount determined under
paragraph 110.6(12)(c) of the Act, as
enacted by subsection (7), in computing a
trust's taxable income for its particular
taxation year that includes either February
28, 2000 or October 17, 2000 or began after
February 28, 2000 and ended before
October 17, 2000, is deemed to be equal to
the amount determined under that
paragraph (without reference to this
subsection) multiplied by the quotient
obtained when the fraction in paragraph
38(a) of the Act, as enacted by subsection
22(1), that applies to the trust for its
particular year is divided by the fraction in
paragraph 38(a) of the Act, as enacted by
subsection 22(1), that applies to the
taxpayer's spouse or common-law partner
for the taxation year in which the spouse or
common-law partner died.
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87. (1) Subclause 111(1)(e)(ii)(C)(I) of the
Act is replaced by the following:
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(I) the foreign resource pool
expenses, if any, incurred by the
partnership in that fiscal period,
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(2) The description of E in the definition
``non-capital loss'' in subsection 111(8) of
the Act is replaced by the following:
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E is the total of all amounts each of which
is the taxpayer's loss for the year from
an office, employment, business or
property, the taxpayer's allowable
business investment loss for the year, an
amount deducted under paragraph
(1)(b) or section 110.6 in computing the
taxpayer's taxable income for the year
or an amount that may be deducted
under any of paragraphs 110(1)(d) to
(d.3), (f), (j) and (k), section 112 and
subsections 113(1) and 138(6) in
computing the taxpayer's taxable
income for the year, and
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(3) The description of B in the definition
``non-capital loss'' in subsection 111(8) of
the Act is replaced by the following:
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B is the amount, if any, determined in
respect of the taxpayer for the year
under section 110.5 or subparagraph
115(1)(a)(vii) ,
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(4) The first formula in the definition
``pre-1986 capital loss balance'' in
subsection 111(8) of the Act is replaced by
the following:
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(A + B) - (C + D + E + E.1 )
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(5) The portion of the definition
``pre-1986 capital loss balance'' in
subsection 111(8) of the Act after the
description of B is replaced by the
following:
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C is the total of all amounts deducted
under section 110.6 in computing the
individual's taxable income for taxation
years that end before 1988 or after
October 17, 2000 ,
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D is 3/4 of the total of all amounts each of
which is an amount deducted under
section 110.6 in computing the
individual's taxable income for a
taxation year , preceding the particular
year, that
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(a) ended after 1987 and before 1990,
or
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(b) began after February 27, 2000 and
ended before October 18, 2000,
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E is 2/3 of the total of all amounts
deducted under section 110.6 in
computing the individual's taxable
income for taxation years, preceding the
particular year, that ended after 1989
and before February 28, 2000, and
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