Income Tax Act — I-3.3 110.6
the reacquisition the amount, if any, by which (a) the amount determined by the formula A - 1.1B where A is the amount designated in the election under subsection 110.6(19) in respect of the property, and B is the fair market value of the property at the end of February 22, 1994 exceeds (b) where the property is an interest in or a share of the capital stock of a flow-through entity (within the meaning assigned by subsection 39.1(1)), 4/3 of the axable capital gain that would have resulted from the election if the amount designated in the election were equal to the fair market value of the property at the end of February 22, 1994 and, in any other case, the fair market value of the property at the end of February 22, 1994. Disposition of partnership interest (23) Where an elector is deemed by subsection 110.6(19) to have disposed of an interest in a partnership, in computing the adjusted cost base to the elector of the interest immediately before the disposition (a) there shall be added the amount determined by the formula (A - B) × C/D + E where A is the total of all amounts each of which is the elector’s share of the partnership’s income (other than a taxable capital gain from the disposition of a property) from a source or from sources in a particular place for its fiscal period that includes February 22, 1994, B is the total of all amounts each of which is the elector’s share of the partnership’s loss (other than an allowable capital loss from the disposition of a property) from a source or from sources in a particular place for that fiscal period, C is the number of days in the period that begins the first day of that fiscal period and ends February 22, 1994, D is the number of days in that fiscal period, and E is 4/3 of the amount that would be determined under paragraph 3(b) in computing the elector’s income for the taxation year in which that fiscal period ends if the elector had no taxable capital gains or allowable capital losses other than those arising from dispositions of property by the partnership that occurred before February 23, 1994; and (b) there shall be deducted the amount that would be determined under paragraph 110.6(23)(a) if the formula in that paragraph were read as “(B - A) × C/D - E” Time for election (24) An election made under subsection 110.6(19) shall be filed with the Minister (a) where the elector is an individual (other than a trust), (i) if the election is in respect of a business of the elector, on or before the individual’s filing-due date for the taxation year in which the fiscal period of the business that includes February 22, 1994 ends, and (ii) in any other case, on or before the individual’s balance-due day for the 1994 taxation year; and (b) where the elector is a personal trust, on or before March 31 of the calendar year following the calendar year in which the taxation year of the trust that includes February 22, 1994 ends. Revocation of election (25) Subject to subsection 110.6(28), an elector may revoke an election made under subsection 110.6(19) by filing a written notice of the revocation with the Minister before 1998. Late election (26) Where an election made under subsection 110.6(19) is filed with the Minister after the day (referred to in this subsection and subsections 110.6(27) and 110.6(29) as the “election filing date”) on or before which the election is required by subsection 110.6(24) to have been filed and on or before the day that is 2 years after the election filing date, the election shall be deemed for the purposes of this section (other than subsection 110.6(29)) to have been filed on the election filing date if an estimate of the penalty in respect of the election is paid by the elector when the election is filed with the Minister. Amended election (27) Subject to subsection 110.6(28), an election under subsection 110.6(19) in respect of a property or a business is deemed to be amended and the election, as amended, is deemed for the purpose of this section (ot