Income Tax Act — I-3.3 135.2
under subsection 104(6), if the trust ceased to be an eligible trust at the beginning of the following taxation year; (b) for the purposes of applying Part XII.2 in respect of the year (i) the trust’s designated income for the year is deemed to be the trust’s income for the year determined without reference to subsections 104(6) and (30), and (ii) the designated beneficiaries under the trust at any time in the year are deemed to include any beneficiary under the trust that is at that time (A) non-resident, (B) a partnership (other than a partnership that is, throughout its fiscal period that includes that time, a Canadian partnership), or (C) exempt because of subsection 149(1) from tax under this Part on the person’s taxable income; (c) each property held by the trust that is the eligible debt or an eligible share is deemed to have a cost amount to the trust of nil; (d) if the trust disposes of a property, (i) subject to subsection (14), the disposition is deemed to occur for proceeds equal to the fair market value of the property immediately before the disposition, (ii) the gain, if any, of the trust from the disposition is (A) deemed not to be a capital gain, and (B) to be included in computing the trust’s income for the trust’s taxation year that includes the time of disposition, and (iii) the loss, if any, of the trust from the disposition is (A) deemed not to be a capital loss, and (B) to be deducted in computing the trust’s income for the trust’s taxation year that includes the time of disposition; (e) the trust is deemed not to be a (i) personal trust, (ii) unit trust, (iii) trust prescribed for the purpose of subsection 107(2), or (iv) trust any interest in which is an excluded right or interest in applying section 128.1; (f) any security (in this paragraph and paragraph (g), as defined in subsection 122.1(1)) of the trust that is held by a trust governed by a deferred profit sharing plan, FHSA, RDSP, RESP, RRIF, RRSP or TFSA (referred to in this paragraph and paragraph (g) as the “registered plan trust”) is deemed not to be a qualified investment for the registered plan trust; (g) if a registered plan trust governed by a TFSA or FHSA acquires at any time a security of the trust, Part XI.01 applies in respect of the security as though the acquisition is an advantage (i) in relation to the TFSA or the FHSA, as the case may be, that is extended at that time to the controlling individual of the registered plan trust, and (ii) that is a benefit the fair market value of which is the fair market value of the security at that time; and (h) paragraph (h) of the definition disposition in subsection 248(1) does not apply in respect of eligible units of the trust. Participating farmer — acquisition of eligible unit (5) If, at any time, a participating farmer acquires an eligible unit in an eligible trust from the trust, (a) no amount in respect of the acquisition of the eligible unit is included in computing the income of the participating farmer; and (b) the cost amount to the participating farmer of the eligible unit is deemed to be nil. Eligible unit issued to estate (6) If a participating farmer has, immediately before the participating farmer’s death, not received an eligible unit of an eligible trust for which the participating farmer was eligible — pursuant to the plan under which the eligible trust directs its trustees to grant units to persons who have delivered grain under a contract with the Canadian Wheat Board on or after August 1, 2013 — and the eligible trust issues the unit to the estate that arose on and as a consequence of the death, (a) the participating farmer is deemed to have acquired the unit at the time that is immediately before the time that is immediately before the death, as a participating farmer from the eligible trust, and to own the unit at the time that is immediately before the death; (b) for the purpose of paragraph (f) of the definition eligible trust in subsection (1), the estate is deemed no