Income Tax Act — I-3.3 110.6
 of the insured, shall, until the later of (C) the redemption, acquisition or cancellation, and (D) the day that is 60 days after the payment of the proceeds under the policy, be deemed not to exceed the cash surrender value (within the meaning assigned by subsection 148(9)) of the policy immediately before the death of the insured; and (b) the fair market value of an asset of a particular corporation that is a share of the capital stock or indebtedness of another corporation with which the particular corporation is connected shall be deemed to be nil and, for the purpose of this paragraph, a particular corporation is connected with another corporation only where (i) the particular corporation is connected (within the meaning assigned by paragraph (d) of the definition qualified small business corporation share in subsection 110.6(1)) with the other corporation, and (ii) the other corporation is not connected (within the meaning of subsection 186(4) as determined without reference to subsection 186(2) and on the assumption that the other corporation is a payer corporation within the meaning of subsection 186(4)) with the particular corporation, except that this paragraph applies only in determining whether a share of the capital stock of another corporation with which the particular corporation is connected is a qualified small business corporation share or a share of the capital stock of a family farm or fishing corporation and in determining whether the other corporation is a small business corporation. Personal trust (16) For the purposes of the definition qualified small business corporation share in subsection 110.6(1) and of paragraph 110.6(14)(c), a personal trust shall be deemed to include a trust described in subsection 7(2). Order of deduction (17) For the purpose of clause 110.6(2)(a)(iii)(A), amounts deducted under this section in computing an individual’s taxable income for a taxation year that ended before 1990 shall be deemed to have first been deducted in respect of amounts that were included in computing the individual’s income under this Part for the year because of subparagraph 14(1)(a)(v) before being deducted in respect of any other amounts that were included in computing the individual’s income under this Part for the year. (18) [Repealed, 1995, c. 3, s. 32] Election for property owned on February 22, 1994 (19) Subject to subsection 110.6(20), where an individual (other than a trust) or a personal trust (each of which is referred to in this subsection and subsections 110.6(20) to 110.6(29) as the “elector”), elects in prescribed form to have the provisions of this subsection apply in respect of (a) a capital property (other than an interest in a trust referred to in any of paragraphs (f) to (j) of the definition flow-through entity in subsection 39.1(1)) owned at the end of February 22, 1994 by the elector, the property shall be deemed, except for the purposes of sections 7 and 35 and subparagraph 110(1)(d.1)(ii), (i) to have been disposed of by the elector at that time for proceeds of disposition equal to the greater of (A) the amount determined by the formula A - B where A is the amount designated in respect of the property in the election, and B is the amount, if any, that would, if the disposition were a disposition for the purpose of section 7 or 35, be included under that section as a result of the disposition in computing the income of the elector, and (B) the adjusted cost base to the elector of the property immediately before the disposition, and (ii) to have been reacquired by the elector immediately after that time at a cost equal to (A) where the property is an interest in or a share of the capital stock of a flow-through entity (within the meaning assigned by subsection 39.1(1)) of the elector, the cost to the elector of the property immediately before the disposition referred to in subparagraph 110.6(19)(a)(i), (B) where an amount would, if the disposition referred to in subparagraph 110.6(1