Income Tax Act — I-3.3 39
 so elects in prescribed form in the taxpayer’s return of income under this Part for that year, (a) every Canadian security owned by the taxpayer in that year or any subsequent taxation year shall be deemed to have been a capital property owned by the taxpayer in those years; and (b) every disposition by the taxpayer of any such Canadian security shall be deemed to be a disposition by the taxpayer of a capital property. Members of partnerships (4.1) For the purpose of determining the income of a taxpayer who is a member of a partnership, subsections 39(4) and 39(5) apply as if (a) every Canadian security owned by the partnership were owned by the taxpayer; and (b) every Canadian security disposed of by the partnership in a fiscal period of the partnership were disposed of by the taxpayer at the end of that fiscal period. Exception (5) An election under subsection 39(4) does not apply to a disposition of a Canadian security by a taxpayer (other than a mutual fund corporation or a mutual fund trust) who at the time of the disposition is (a) a trader or dealer in securities, (b) a financial institution (as defined in subsection 142.2(1)), (c) to (e) [Repealed, 1995, c. 21, s. 49] (f) a corporation whose principal business is the lending of money or the purchasing of debt obligations or a combination thereof, or (g) a non-resident, or any combination thereof. Definition of Canadian security (6) For the purposes of this section, Canadian security means a security (other than a prescribed security) that is a share of the capital stock of a corporation resident in Canada, a unit of a mutual fund trust or a bond, debenture, bill, note, mortgage, hypothecary claim or similar obligation issued by a person resident in Canada. Unused share-purchase tax credit (7) The amount of any unused share-purchase tax credit of a taxpayer for a particular taxation year, to the extent that it was not deducted from the taxpayer’s tax otherwise payable under this Part for the immediately preceding taxation year, shall be deemed to be a capital loss of the taxpayer from a disposition of property for the year immediately following the particular taxation year. Unused scientific research and experimental development tax credit (8) The amount of any unused scientific research and experimental development tax credit of a taxpayer for a particular taxation year, to the extent that it was not deducted from the taxpayer’s tax otherwise payable under this Part for the immediately preceding taxation year, shall be deemed to be a capital loss of the taxpayer from a disposition of property for the year immediately following the particular taxation year, except that where the taxpayer is an individual the capital loss shall be deemed to be 147% of that amount. Deduction from business investment loss (9) In computing the business investment loss of a taxpayer who is an individual (other than a trust) for a taxation year from the disposition of a particular property, there shall be deducted an amount equal to the lesser of (a) the amount that would be the taxpayer’s business investment loss for the year from the disposition of that particular property if paragraph 39(1)(c) were read without reference to subparagraph 39(1)(c)(viii), and (b) the amount, if any, by which the total of (i) the total of all amounts each of which is twice the amount deducted by the taxpayer under section 110.6, 110.61 or 110.62 in computing the taxpayer’s taxable income for a preceding taxation year that (A) ended before 1988, or (B) begins after October 17, 2000, (i.1) the total of all amounts each of which is (A) 3/2 of the amount deducted under section 110.6 in computing the taxpayer’s taxable income for a preceding taxation year that (I) ended after 1987 and before 1990, or (II) began after February 27, 2000 and ended before October 18, 2000, or (B) the amount determined by multiplying the reciprocal of the fraction in paragraph 38(a) that applies to the taxpayer for each of the taxpayer