Income Tax Act — I-3.3 110.6
ty or to a business, as the case may be, of an elector only if (a) where the elector is an individual (other than a trust), (i) its application to all of the properties in respect of which elections were made under that subsection by the elector or a spouse or common-law partner of the elector and to all the businesses in respect of which elections were made under that subsection by the elector (A) would result in an increase in the amount deductible under subsection 110.6(3) in computing the taxable income of the elector or a spouse or common-law partner of the elector, and (B) in respect of each of the 1994 and 1995 taxation years, (I) where no part of the taxable capital gain resulting from an election by the elector is included in computing the income of a spouse of the elector, would not result in the amount determined under paragraph 110.6(3)(a) for the year in respect of the elector being exceeded by the lesser of the amounts determined under paragraphs 110.6(3)(b) and 110.6(3)(c) for the year in respect of the elector, and (II) where no part of the taxable capital gain resulting from an election by the elector is included in computing the income of the elector, would not result in the amount determined under paragraph 110.6(3)(a) for the year in respect of a spouse or common-law partner of the elector being exceeded by the lesser of the amounts determined under paragraphs 110.6(3)(b) and 110.6(3)(c) for the year in respect of the spouse or common-law partner, (ii) the amount designated in the election in respect of the property exceeds 11/10 of its fair market value at the end of February 22, 1994, or (iii) the amount designated in the election in respect of the business is $1.00 or exceeds 11/10 of the fair market value at the end of February 22, 1994 of all the eligible capital property owned at that time by the elector in respect of the business; and (b) where the elector is a personal trust, its application to all of the properties in respect of which an election was made under that subsection by the elector would result in (i) an increase in the amount deemed by subsection 104(21.2) to be a taxable capital gain of an individual (other than a trust) who was a beneficiary under the trust at the end of February 22, 1994 and resident in Canada at any time in the individual’s taxation year in which the trust’s taxation year that includes that day ends, or (ii) where subsection 110.6(12) applies to the trust for the trust’s taxation year that includes that day, an increase in the amount deductible under that subsection in computing the trust’s taxable income for that year. Effect of election on non-qualifying real property (21) Where an elector is deemed by subsection 110.6(19) to have disposed of a non-qualifying real property, (a) in computing the elector’s taxable capital gain from the disposition, there shall be deducted the amount determined by the formula 0.75(A - B) where A is the elector’s capital gain from the disposition, and B is the elector’s eligible real property gain from the disposition; and (b) in determining at any time after the disposition the capital cost to the elector of the property where it is a depreciable property and the adjusted cost base to the elector of the property in any other case (other than where the property was at the end of February 22, 1994 an interest in or a share of the capital stock of a flow-through entity within the meaning assigned by subsection 39.1(1)), there shall be deducted 4/3 of the amount determined under paragraph 110.6(21)(a) in respect of the property. Adjusted cost base (22) Where an elector is deemed by paragraph 110.6(19)(a) to have reacquired a property, there shall be deducted in computing the adjusted cost base to the elector of the property at any time after 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,