Income Tax Act — I-3.3 108
ation year, means the lesser of (a) its annual gains limit (within the meaning assigned by subsection 110.6(1)) for the year, and (b) the amount determined by the formula A - B where A is its cumulative gains limit (within the meaning assigned by subsection 110.6(1)) at the end of the year, and B is the total of all amounts designated under subsection 104(21.2) by the trust in respect of beneficiaries for taxation years before that year; ( gains en capital imposables admissibles ) excluded property , of a trust, means property owned by the trust at, and distributed by the trust after, the end of 2016, if (a) the trust is not in its first taxation year that begins after 2016 a trust described in subparagraph (c.1)(iii.1) of the definition principal residence in section 54, and (b) the property is a property that would be the trust’s principal residence (as defined in section 54) for the taxation year in which the distribution occurs if (i) that definition were read without reference to its subparagraph (c.1)(iii.1), and (ii) the trust designated the property under that definition as its principal residence for the taxation year; ( bien exclu ) exempt property of a taxpayer at any time means property any income or gain from the disposition of which by the taxpayer at that time would, because the taxpayer is non-resident or because of a provision contained in a tax treaty, not cause an increase in the taxpayer’s tax payable under this Part; ( bien exonéré ) income interest of a taxpayer in a trust means a right (whether immediate or future and whether absolute or contingent) of the taxpayer as a beneficiary under a personal trust to, or to receive, all or any part of the income of the trust and, after 1999, includes a right (other than a right acquired before 2000 and disposed of before March 2000) to enforce payment of an amount by the trust that arises as a consequence of any such right; ( participation au revenu ) inter vivos trust means a trust other than a testamentary trust; ( fiducie non testamentaire ) non-qualifying real property [Repealed, 1995, c. 3, s. 31] pre-1972 spousal trust at a particular time means a trust that was (a) created by the will of a taxpayer who died before 1972, or (b) created before June 18, 1971 by a taxpayer during the taxpayer’s lifetime that throughout the period beginning at the time it was created and ending at the earliest of January 1, 1993, the day on which the taxpayer’s spouse or common-law partner died and the particular time, was a trust under which the taxpayer’s spouse or common-law partner was entitled to receive all of the income of the trust that arose before the spouse’s or common-law partner’s death, unless a person other than the spouse or common-law partner received or otherwise obtained the use of any of the income or capital of the trust before the end of that period; ( fiducie au profit du conjoint antérieure à 1972 ) preferred beneficiary under a trust for a particular taxation year of the trust means a beneficiary under the trust at the end of the particular year who is resident in Canada at that time if (a) the beneficiary is (i) an individual in respect of whom paragraphs 118.3(1)(a) to (b) apply for the individual’s taxation year (in this definition referred to as the “beneficiary’s year”) that ends in the particular year, or (ii) an individual (A) who attained the age of 18 years before the end of the beneficiary’s year, was a dependant (within the meaning assigned by subsection 118(6)) of another individual for the beneficiary’s year and was dependent on the other individual because of mental or physical infirmity, and (B) whose income (computed without reference to subsection 104(14)) for the beneficiary’s year does not exceed the amount determined for F in subsection 118(1.1) for the year, and (b) the beneficiary is (i) the settlor of the trust, (ii) the spouse or common-law partner or former spouse or common-law partner of the settlor of the trust, or (iii) a chil