Income Tax Act — I-3.3 85
articular time and in the course of carrying on the business, and (iii) where the property is owned by the corporation in connection with a farming business and the income from that business is computed in accordance with the cash method, for the purposes of section 28, (A) an amount equal to the cost to the corporation of the property shall be deemed to have been paid by the corporation, and (B) the corporation shall be deemed to have purchased the property for an amount equal to that cost, at the particular time and in the course of carrying on that business; (d) to (d.12) [Repealed, 2016, c. 12, s. 26] (e) where the property was depreciable property of a prescribed class of the taxpayer and the amount that, but for this paragraph, would be the proceeds of disposition thereof is less than the least of (i) the undepreciated capital cost to the taxpayer of all property of that class immediately before the disposition, (ii) the cost to the taxpayer of the property, and (iii) the fair market value of the property at the time of the disposition, the amount agreed on by the taxpayer and the corporation in their election in respect of the property shall, irrespective of the amount actually so agreed on by them, be deemed to be the least of the amounts described in subparagraphs 85(1)(e)(i) to 85(1)(e)(iii); (e.1) where two or more properties, each of which is a property described in paragraph (e), are disposed of at the same time, paragraph (e) applies as if each property so disposed of had been separately disposed of in the order designated by the taxpayer before the time referred to in subsection (6) for the filing of an election in respect of those properties or, if the taxpayer does not so designate any such order, in the order designated by the Minister; (e.2) where the fair market value of the property immediately before the disposition exceeds the greater of (i) the fair market value, immediately after the disposition, of the consideration received by the taxpayer for the property disposed of by the taxpayer, and (ii) the amount that the taxpayer and the corporation have agreed on in their election in respect of the property, determined without reference to this paragraph, and it is reasonable to regard any part of the excess as a benefit that the taxpayer desired to have conferred on a person related to the taxpayer (other than a corporation that was a wholly owned corporation of the taxpayer immediately after the disposition), the amount that the taxpayer and the corporation agreed on in their election in respect of the property shall, regardless of the amount actually so agreed on by them, be deemed (except for the purposes of paragraphs 85(1)(g) and 85(1)(h)) to be an amount equal to the total of the amount referred to in subparagraph 85(1)(e.2)(ii) and that part of the excess; (e.3) where, under any of paragraphs (c.1) and (e), the amount that the taxpayer and the corporation have agreed on in their election in respect of the property (in this paragraph referred to as the elected amount ) would be deemed to be an amount that is greater or less than the amount that would be deemed, subject to paragraph (c), to be the elected amount under paragraph (b), the elected amount is deemed to be the greater of (i) the amount deemed by paragraph (c.1) or (e), as the case may be, to be the elected amount, and (ii) the amount deemed by paragraph 85(1)(b) to be the elected amount; (e.4) where (i) the property is depreciable property of a prescribed class of the taxpayer and is a passenger vehicle the cost to the taxpayer of which was more than $20,000 or such other amount as may be prescribed, and (ii) the taxpayer and the corporation do not deal at arm’s length, the amount that the taxpayer and the corporation have agreed on in their election in respect of the property shall be deemed to be an amount equal to the undepreciated capital cost to the taxpayer of the class immediately before the disposition, except that, for the purposes