|
|
(iii) where the amount of the
taxpayer's net capital gains from
dispositions of property in the first
period is less than the amount of the
taxpayer's net capital losses from
dispositions of property in the second
period, the fraction that applies to the
taxpayer for the year is 2/3,
|
|
|
|
(iv) where the amount of the taxpayer's
net capital losses from dispositions of
property in the first period is less than
the amount of the taxpayer's net
capital gains from dispositions of
property in the second period, the
fraction that applies to the taxpayer
for the year is 2/3,
|
|
|
|
(v) where the taxpayer has only net
capital gains, or only net capital losses,
from dispositions of property in each of
the first and second periods, the
fraction that applies to the taxpayer
for the year is the fraction determined
by the formula
|
|
|
|
(3/4 x A + 2/3 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the net capital gains or the net
capital losses, as the case may be, of
the taxpayer from dispositions of
property in the first period, and
|
|
|
|
B is the net capital gains or the net
capital losses, as the case may be, of
the taxpayer from dispositions of
property in the second period, and
|
|
|
|
(vi) where the net capital gains and net
capital losses of the taxpayer for the
year are nil, the fraction that applies to
the taxpayer for the year is 2/3,
|
|
|
|
(d) for a taxation year of a taxpayer that
began after February 27, 2000 and
includes October 18, 2000, the references
to the fraction ``1/2'' in paragraph 38(a)
of the Act, as enacted by subsection (1),
and in paragraphs 38(b) and (c) of the
Act, as enacted by subsection (4), shall be
read as references to the fraction that
applies to the taxpayer for that year, and
for this purpose,
|
|
|
|
(i) where the amount of the taxpayer's
net capital gains from dispositions of
property in the period that began at the
beginning of the year and ended at the
end of October 17, 2000 (in this
paragraph referred to as the ``first
period'') exceeds the amount of the
taxpayer's net capital losses from
dispositions of property in the period
that begins at the beginning of October
18, 2000 and ends at the end of the year
(in this paragraph referred to as the
``second period''), the fraction that
applies to the taxpayer for the year is
2/3,
|
|
|
|
(ii) where the amount of the taxpayer's
net capital losses from dispositions of
property in the first period exceeds the
amount of the taxpayer's net capital
gains from dispositions of property in
the second period, the fraction that
applies to the taxpayer for the year is
2/3,
|
|
|
|
(iii) where the amount of the
taxpayer's net capital gains from
dispositions of property in the first
period is less than the amount of the
taxpayer's net capital losses from
dispositions of property in the second
period, the fraction that applies to the
taxpayer for the year is 1/2,
|
|
|
|
(iv) where the amount of the taxpayer's
net capital losses from dispositions of
property in the first period is less than
the amount of the taxpayer's net
capital gains from dispositions of
property in the second period, the
fraction that applies to the taxpayer
for the year is 1/2,
|
|
|
|
(v) where the taxpayer has only net
capital gains, or only net capital losses,
from dispositions of property in each of
the first and second periods, the
fraction that applies to the taxpayer
for the year is the fraction determined
by the formula
|
|
|
|
(2/3 x A + 1/2 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the net capital gains or the net
capital losses, as the case may be, of
the taxpayer from dispositions of
property in the first period, and
|
|
|
|
B is the net capital gains or the net
capital losses, as the case may be, of
the taxpayer from dispositions of
property in the second period, and
|
|
|
|
(vi) where the net capital gains and net
capital losses of the taxpayer for the
year are nil, the fraction that applies to
the taxpayer for the year is 1/2,
|
|
|
|
(e) for a taxation year of a taxpayer that
includes February 27, 2000 and October
18, 2000, the references to the fraction
``1/2'' in paragraph 38(a) of the Act, as
enacted by subsection (1), and in
paragraphs 38(b) and (c) of the Act, as
enacted by subsection (4), shall be read as
references to the fraction that applies to
the taxpayer for that year, and for this
purpose,
|
|
|
|
(i) the fraction that applies to the
taxpayer for the year is 3/4, where
|
|
|
|
(A) the amount by which the amount
of the taxpayer's net capital gains
from dispositions of property in the
period that began at the beginning of
the year and ended at the end of
February 27, 2000 (in this
paragraph referred to as the ``first
period'') exceeds the amount of the
taxpayer's net capital losses from
dispositions of property in the period
that began at the beginning of
February 28, 2000 and ended at the
end of October 17, 2000 (in this
paragraph referred to as the
``second period'')
|
|
|
|
|
|
|
|
(B) the amount of the taxpayer's net
capital losses from dispositions of
property in the period that begins at
the beginning of October 18, 2000
and ends at the end of the year (in
this paragraph referred to as the
``third period''),
|
|
|
|
(ii) the fraction that applies to the
taxpayer for the year is 3/4, where
|
|
|
|
(A) the amount by which the amount
of the taxpayer's net capital losses
from dispositions of property in the
first period exceeds the amount of
the taxpayer's net capital gains from
dispositions of property in the
second period
|
|
|
|
|
|
|
|
(B) the amount of the taxpayer's net
capital gains from dispositions of
property in the third period,
|
|
|
|
(iii) the fraction that applies to the
taxpayer for the year is 2/3, where
|
|
|
|
(A) the amount by which the amount
of the taxpayer's net capital gains
from dispositions of property in the
second period exceeds the amount of
the taxpayer's net capital losses from
dispositions of property in the first
period
|
|
|
|
|
|
|
|
(B) the amount of the taxpayer's net
capital losses from dispositions of
property in the third period,
|
|
|
|
(iv) the fraction that applies to the
taxpayer for the year is 2/3, where
|
|
|
|
(A) the amount by which the amount
of the taxpayer's net capital losses
from dispositions of property in the
second period exceeds the amount of
the taxpayer's net capital gains from
dispositions of property in the first
period
|
|
|
|
|
|
|
|
(B) the amount of the taxpayer's net
capital gains from dispositions of
property in the third period,
|
|
|
|
(v) where the taxpayer has net capital
gains in each of the first and second
periods and the total amount of those
net capital gains in those periods
exceeds the amount of the taxpayer's
net capital losses in the third period,
the fraction that applies to the
taxpayer for the year is the fraction
that is determined by the formula
|
|
|
|
(3/4 x A + 2/3 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the net capital gains of the
taxpayer from dispositions of
property in the first period, and
|
|
|
|
B is the net capital gains of the
taxpayer from dispositions of
property in the second period,
|
|
|
|
(vi) where the taxpayer has net capital
losses in each of the first and second
periods and the total amount of those
net capital losses in those periods
exceeds the amount of the taxpayer's
net capital gains in the third period, the
fraction that applies to the taxpayer
for the year is the fraction that is
determined by the formula
|
|
|
|
(3/4 x A + 2/3 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the net capital losses of the
taxpayer from dispositions of
property in the first period, and
|
|
|
|
B is the net capital losses of the
taxpayer from dispositions of
property in the second period,
|
|
|
|
(vii) where the taxpayer has only net
capital gains, or only net capital losses,
from dispositions of property in each of
the first, second and third periods, the
fraction that applies to the taxpayer
for the year is the fraction that is
determined by the formula
|
|
|
|
(3/4 x A + 2/3 x B + 1/2 x C)/(A + B + C)
|
|
|
|
|
|
|
|
A is the taxpayer's net capital gains
or net capital losses, as the case may
be, from dispositions of property in
the first period,
|
|
|
|
B is the taxpayer's net capital gains
or net capital losses, as the case may
be, from dispositions of property in
the second period, and
|
|
|
|
C is the taxpayer's net capital gains
or net capital losses, as the case may
be, from dispositions of property in
the third period,
|
|
|
|
(viii) where the amount of the
taxpayer's net capital gains from
dispositions of property in the first
period exceeds the amount of the
taxpayer's net capital losses from
dispositions of property in the second
period and the taxpayer has net capital
gains from dispositions of property in
the third period, the fraction that
applies to the taxpayer for the year is
the fraction that is determined by the
formula
|
|
|
|
(3/4 x A + 1/2 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the amount by which the
taxpayer's net capital gains from
dispositions of property in the first
period exceeds the amount of the
taxpayer's net capital losses from
dispositions of property in the
second period, and
|
|
|
|
B is the taxpayer's net capital gains
from dispositions of property in the
third period,
|
|
|
|
(ix) where the amount of the taxpayer's
net capital losses from dispositions of
property in the first period exceeds the
amount of the taxpayer's net capital
gains from dispositions of property in
the second period and the taxpayer has
net capital losses from dispositions of
property in the third period, the
fraction that applies to the taxpayer
for the year is the fraction that is
determined by the formula
|
|
|
|
(3/4 x A + 1/2 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the amount by which the
taxpayer's net capital losses from
dispositions of property in the first
period exceeds the amount of the
taxpayer's net capital gains from
dispositions of property in the
second period, and
|
|
|
|
B is the taxpayer's net capital losses
from dispositions of property in the
third period,
|
|
|
|
(x) where the amount of the taxpayer's
net capital gains from dispositions of
property in the second period exceeds
the amount of the taxpayer's net
capital losses from dispositions of
property in the first period and the
taxpayer has net capital gains from
dispositions of property in the third
period, the fraction that applies to the
taxpayer for the year is the fraction
that is determined by the formula
|
|
|
|
(2/3 x A + 1/2 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the amount by which the
taxpayer's net capital gains from
dispositions of property in the
second period exceeds the amount
of the taxpayer's net capital losses
from dispositions of property in the
first period, and
|
|
|
|
B is the taxpayer's net capital gains
from dispositions of property in the
third period,
|
|
|
|
(xi) where the amount of the taxpayer's
net capital losses from dispositions of
property in the second period exceeds
the amount of the taxpayer's net
capital gains from dispositions of
property in the first period and the
taxpayer has net capital losses from
dispositions of property in the third
period, the fraction that applies to the
taxpayer for the year is the fraction
that is determined by the formula
|
|
|
|
(2/3 x A + 1/2 x B)/(A + B)
|
|
|
|
|
|
|
|
A is the amount by which the
taxpayer's net capital losses from
dispositions of property in the
second period exceeds the amount
of the taxpayer's net capital gains
from dispositions of property in the
first period, and
|
|
|
|
B is the taxpayer's net capital losses
from dispositions of property in the
third period, and
|
|
|
|
(xii) in any other case, the fraction that
applies to the taxpayer for the year is
1/2, and
|
|
|
|
in determining the fraction that applies to a
taxpayer under paragraphs (a) to (e) for the
year, the following rules apply:
|
|
|
|
(f) the net capital gains of the taxpayer
from dispositions of property in a period
is the amount, if any, by which the
taxpayer's capital gains from
dispositions of property in the period
exceed the taxpayer's capital losses from
dispositions of property in the period,
|
|
|
|
(g) the net capital losses of the taxpayer
from dispositions of property in a period
is the amount, if any, by which the
taxpayer's capital losses from
dispositions of property in the period
exceed the taxpayer's capital gains from
dispositions of property in the period,
|
|
|
|
(h) the net amount included as a capital
gain of the taxpayer for a taxation year
from a disposition to which paragraph
38(a.2) of the Act, as enacted by
subsection (3), applies or from a
disposition to which paragraph 38(a.1) of
the Act, as enacted by subsection (2),
applies, is deemed to be equal to one half
of the capital gain,
|
|
|
|
(i) the net amount included as a capital
gain of the taxpayer for a taxation year
from a disposition of property before the
year because of subparagraphs
40(1)(a)(ii) and (iii) of the Act is deemed
to be a capital gain of the taxpayer from
a disposition of property on the first day
of the year,
|
|
|
|
(j) each capital loss that is a business
investment loss shall be determined
without reference to subsections 39(9)
and (10) of the Act,
|
|
|
|
(k) where an amount is included in
computing the income of the taxpayer for
the year because of subsection 80(13) of
the Act in respect of a commercial
obligation that is settled, the amount that
would be determined under that
subsection in respect of the obligation, if
the value of E in the formula in that
subsection were 1, is deemed to be a
capital gain of the taxpayer from a
disposition of property on the day on
which the settlement occurs,
|
|
|
|
(l) the taxpayer's capital gains and losses
from dispositions of property (other than
taxable Canadian property) while the
taxpayer is a non-resident are deemed to
be nil,
|
|
|
|
(m) where an election is made by a
taxpayer under paragraph 104(21.4)(d)
of the Act, as enacted by subsection
78(23), subsection 104(21.5) of the Act, as
enacted by subsection 78(23), subsection
130.1(4.4) or (4.5) of the Act, as enacted
by subsection 127(4), or subsection
131(1.7) or (1.9) of the Act, as enacted by
subsection 128(2), for a year, the portion
of the taxpayer's net capital gains for the
year that are to be treated as being in
respect of capital gains realized on
dispositions of property that occurred in
a particular period in the year is that
proportion of those net capital gains that
the number of days in the particular
period is of the number of days in the
year,
|
|
|
|
(n) where the election made under
paragraph 104(21.4)(d) of the Act, as
enacted by subsection 78(23), or
subsection 104(21.5) of the Act, as
enacted by subsection 78(23), for the year
was made by a personal trust, the portion
of the taxpayer's net capital gains for the
year that are to be treated as being in
respect of capital gains realized on
dispositions of property that occurred in
a particular period in the year is that
proportion of those net capital gains that
the number of days in the particular
period is of the number of days that are in
all periods in the year in which a net gain
was realized,
|
|
|
|
(o) where an amount is designated under
subsection 104(21) of the Act in respect of
a beneficiary by a trust in respect of the
net taxable capital gains of the trust for a
taxation year of the trust and the trust
does not elect under paragraph
104(21.4)(d) of the Act, as enacted by
subsection 78(23), for the year, the
deemed gains of the beneficiary referred
to in subsection 104(21.4) of the Act, as
enacted by subsection 78(23), are deemed
to have been realized in each period in the
year in a proportion that is equal to the
same proportion that the net capital gains
of the trust realized by the trust in that
period is of all the net capital gains
realized by the trust in the year,
|
|
|
|
(p) where in the course of administering
the estate of a deceased taxpayer, a
capital loss from a disposition of property
by the legal representative of a deceased
taxpayer is deemed under paragraph
164(6)(c) of the Act to be a capital loss of
the deceased taxpayer from the
disposition of property by the taxpayer in
the taxpayer's last taxation year and not
to be a capital loss of the estate, the
capital loss is deemed to be from the
disposition of a property by the taxpayer
immediately before the taxpayer's death,
|
|
|
|
(q) each capital gain referred to in
paragraph 104(21.4)(a) of the Act, as
enacted by subsection 78(23), in respect
of a beneficiary, shall be determined as if
that paragraph were read without
reference to subparagraph
104(21.4)(a)(ii) of the Act,
|
|
|
|
(r) where no capital gains or losses are
realized in a period, the amount of net
capital gains or losses for that period is
deemed to be nil,
|
|