Income Tax Application Rules — I-3.31 26
ys after that time, reacquired the same property or acquired a substantially identical property, for the purposes of this section (a) the taxpayer shall be deemed to have owned the property so reacquired or the substantially identical property so acquired, as the case may be, on June 18, 1971 and thereafter without interruption until the time the taxpayer so reacquired or acquired it as the case may be; (b) where the property was property so reacquired, its actual cost or its amortized cost on January 1, 1972, as the case may be, to the taxpayer shall be determined as if the taxpayer had not so disposed of and so reacquired it; and (c) where the property was substantially identical property so acquired, its actual cost or its amortized cost on January 1, 1972, as the case may be, to the taxpayer shall be deemed to be the amount that was the actual cost or the amortized cost on January 1, 1972, as the case may be, to the taxpayer of the property so disposed of by the taxpayer. Election re cost (7) Where, but for this subsection, the cost to an individual of any property actually owned by the individual on December 31, 1971 would be determined under subsection (3) or (4) otherwise than because of subsection (5) and the individual has so elected, in prescribed manner and not later than the day on or before which the individual is required by Part I of the amended Act to file a return of income for the first taxation year in which the individual disposes of all or any part of the property, other than (a) personal-use property of the individual that was not listed personal property or real property, (b) listed personal property, if the individual’s gain or loss, as the case may be, from the disposition thereof was, because of subsection 46(1) or (2) of the amended Act, nil, (c) the individual’s principal residence, if the individual’s gain from the disposition thereof was, because of paragraph 40(2)(b) of the amended Act, nil, (d) personal-use property of the individual that was real property (other than the individual’s principal residence), if the individual’s gain from the disposition thereof was, because of subsection 46(1) or (2) of the amended Act, nil, or (e) any other property, the proceeds of disposition of which are equal to its fair market value on valuation day, the cost to the individual of each capital property (other than depreciable property, an interest in a partnership or any property described in any of paragraphs (a) to (e) that was disposed of by the individual before that taxation year) actually owned by the individual on December 31, 1971 shall be deemed to be its fair market value on valuation day. Identical properties (8) For the purposes of computing, at any particular time after 1971, the adjusted cost base to a taxpayer of any capital property (other than depreciable property or an interest in a partnership) that was owned by the taxpayer on December 31, 1971 and thereafter without interruption until the particular time, if the property was one of a group of identical properties owned by the taxpayer on December 31, 1971, (a) section 47 of the amended Act does not apply; (b) where the property was an obligation, (i) for the purpose of paragraph (3)(a), its amortized cost to the taxpayer on January 1, 1972 shall be deemed to be that proportion of the total of the amortized costs to the taxpayer on January 1, 1972 of all obligations of that group that the principal amount of the obligation is of the total of the principal amounts of all obligations of that group, and (ii) for the purpose of paragraph (3)(b), its fair market value on valuation day shall be deemed to be that proportion of the fair market value on that day of all obligations of that group that the principal amount of the obligation is of the total of the principal amounts of all obligations of that group; (c) where the property was not an obligation, (i) for the purpose of paragraph (3)(a), its actual cost to the taxpayer shall be deemed to b