Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)

(d) for the purposes of section 93 and subsections 116(6) and (6.1), the property is deemed to have been disposed of by the taxpayer at that time, and

(e) for the purposes of subsection 2(3) and sections 110.6 and 150, the property is deemed to have been disposed of by the taxpayer in the year.

(b) for the purposes of subsection 2(3), section 110.6, subsections 116(6) and (6.1) and section 150, the interest is deemed to have been disposed of by the member at that time.

Marginal note:Principal residence — property owned at end of 1981

(6) Subject to subsection (6.1), if a property was owned by a taxpayer, whether jointly with another person or otherwise, at the end of 1981 and continuously from the beginning of 1982 until disposed of by the taxpayer, the amount of the gain determined under paragraph (2)(b) in respect of the disposition shall not exceed the amount, if any, by which the total of

Marginal note:Principal residence — property owned at end of 2016

(6.1) If a trust owns property at the end of 2016, the trust is not in its first taxation year that begins after 2016 a trust described in subparagraph (c.1)(iii.1) of the definition principal residence in section 54, the trust disposes of the property after 2016, the disposition is the trust’s first disposition of the property after 2016 and the trust owns the property, whether jointly with another person or otherwise, continuously from the beginning of 2017 until the disposition,

• (a) subsection (6) does not apply to the disposition; and

• (b) the trust’s gain determined under paragraph (2)(b) in respect of the disposition is the amount, if any, determined by the formula

  A + B − C

  where

  A

  is the trust’s gain calculated in accordance with paragraph (2)(b) on the assumption that

  • (i) the trust disposed of the property on December 31, 2016 for proceeds of disposition equal to its fair market value on that date, and

  • (ii) paragraph (a) did not apply in respect of the disposition described in subparagraph (i),

  B

  is the trust’s gain in respect of the disposition calculated in accordance with paragraph (2)(b) on the assumption that

  • (i) the description of B in that paragraph is read without reference to “one plus”, and

  • (ii) the trust acquired the property on January 1, 2017 at a cost equal to its fair market value on December 31, 2016, and

  C

  is the amount, if any, by which the fair market value of the property on December 31, 2016 exceeds the proceeds of disposition of the property determined without reference to this subsection.

Marginal note:Ecological gifts

(2) For the purposes of subsection (1) and section 53, if at any time a taxpayer disposes of a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real or personal servitude, in circumstances where subsection 110.1(5) or 118.1(12) applies,

• (a) the portion of the adjusted cost base to the taxpayer of the land immediately before the disposition that can reasonably be regarded as attributable to the covenant, easement or servitude, as the case may be, is deemed to be equal to the amount determined by the formula

(C) subsections 100(4), 112(3.1), (4), (4.2) as it read in its application to dispositions of property that occurred before April 27, 1995 and (5.2),

(iii.1) if the year begins after 2016, the trust is, in the year,

• (A) a trust

  • (I) for which a day is to be determined under paragraph 104(4)(a), (a.1) or (a.4) by reference to the death or later death, as the case may be, that has not occurred before the beginning of the year, of an individual who is resident in Canada during the year, and

  • (II) a specified beneficiary of which for the year is the individual referred to in subclause (I),

• (B) a trust

  • (I) that is a qualified disability trust (as defined in subsection 122(3)) for the year, and

  • (II) an electing beneficiary (in this clause, as defined in subsection 122(3)) of which for the year is

    1 resident in Canada during the year,

    2 a specified beneficiary of the trust for the year, and

    3 a spouse, common-law partner, former spouse or common-law partner or child of the settlor (in this subparagraph, as defined in subsection 108(1)) of the trust, or

• (C) a trust

  • (I) a specified beneficiary of which for the year is an individual

    1 who is resident in Canada during the year,

    2 who has not attained 18 years of age before the end of the year, and

    3 a mother or father of whom is a settlor of the trust, and

  • (II) in respect of which either of the following conditions is met:

    1 no mother or father of the individual referred to in subclause (I) is alive at the beginning of the year, or

    2 the trust arose before the beginning of the year on and as a consequence of the death of a mother or father of the individual referred to in subclause (I), and