Income Tax Act — I-3.3 110.6
D) a partnership referred to in subparagraph (a)(v) of the definition qualified farm or fishing property in subsection (1), or (E) a personal trust from which the individual acquired the property. Capital gains deduction — qualified farm or fishing property (2) In computing the taxable income for a taxation year of an individual (other than a trust) who was resident in Canada throughout the year and who disposed of qualified farm or fishing property in the year or a preceding taxation year (or who disposed of before 2014 property that was qualified farm property or qualified fishing property at the time of disposition), there may be deducted such amount as the individual may claim not exceeding the least of (a) the amount determined by the formula [$625,000 − (A + B + C + D)] × E where 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 (i) before 1988, or (ii) after October 17, 2000, B is the total of all amounts each of which is (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 (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, 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 (i) for a preceding taxation year that ended after 1989 and before February 28, 2000, or (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, 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 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, and E is (i) in the case of a taxation year that includes February 28, 2000 or October 17, 2000, the amount determined by the formula 2 × (F + G)/H where F is the amount deemed by subsection 14(1.1) to be a taxable capital gain of the taxpayer for the taxation year, 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 H is the total of (A) the amount deemed by subsection 14(1.1) to be a taxable capital gain of the taxpayer for the taxation year multiplied by (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, (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 (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 (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 (ii) in any other case, 1, (b) the individual’s cumulative gains limit at the end of the year, (c) the individual’s annual gains limit for the year, and (d) the amount that would