Income Tax Act — I-3.3 128.1
ely before the particular time for proceeds of disposition equal to its fair market value immediately before the particular time, the application of subsection 40(3.7) would reduce the amount that would, but for that subsection and this subsection, be the individual’s loss from the disposition, (i) the individual is deemed to have disposed of the property at the time of disposition (within the meaning assigned by paragraph (4)(b)) in respect of the emigration time for proceeds of disposition equal to the total of (A) the adjusted cost base to the individual of the property immediately before the time of disposition, and (B) the amount, if any, by which that reduction exceeds the lesser of (I) the adjusted cost base to the individual of the property immediately before the time of disposition, and (II) the amount, if any, that the individual specifies for the purposes of this paragraph in the election under paragraph (a) in respect of the property, (ii) the individual is deemed to have reacquired the property at the emigration time at a cost equal to the amount, if any, by which the amount determined under clause (i)(A) exceeds the lesser of that reduction and the amount specified by the individual under subclause (i)(B)(II), and (iii) for the purpose of section 119, the individual is deemed to have disposed of the property immediately before the particular time; (c) if the individual so elects in writing and files the election with the Minister on or before the individual’s filing-due date for the year, in respect of each property that the individual owned throughout the period that began at the emigration time and that ends at the particular time and that is deemed by paragraph (1)(b) to have been disposed of because the individual became resident in Canada, notwithstanding paragraphs (1)(c) and (4)(b) the individual’s proceeds of disposition at the time of disposition (within the meaning assigned by paragraph (4)(b)), and the individual’s cost of acquiring the property at the particular time, are deemed to be those proceeds and that cost, determined without reference to this paragraph, minus the least of (i) the amount that would, but for this paragraph, have been the individual’s gain from the disposition of the property deemed by paragraph (4)(b) to have occurred, (ii) the fair market value of the property at the particular time, and (iii) the amount that the individual specifies for the purposes of this paragraph in the election; and (d) notwithstanding subsections 152(4) to (5), any assessment of tax that is payable under this Act by the individual for any taxation year that is before the year that includes the particular time and that is not before the year that includes the emigration time shall be made that is necessary to take an election under this subsection into account, except that no such assessment shall affect the computation of (i) interest payable under this Act to or by a taxpayer in respect of any period that is before the day on which the taxpayer’s return of income for the taxation year that includes the particular time is filed, or (ii) any penalty payable under this Act. Deemed taxable Canadian property (6.1) For the purposes of paragraph (6)(a), a property is deemed to be taxable Canadian property of the individual throughout the period that began at the emigration time and that ends at the particular time if (a) the emigration time is before March 5, 2010; and (b) the property was taxable Canadian property of the individual on March 4, 2010. Returning trust beneficiary (7) If an individual (other than a trust) (a) becomes resident in Canada at a particular time in a taxation year, (b) owns at the particular time a property that the individual last acquired on a trust distribution to which subsection 107(2) would, but for subsection 107(5), have applied and at a time (in this subsection referred to as the “distribution time”) that was after October 1, 1996 and before the particular time, and (c) was a