Income Tax Act — I-3.3 207.01
 market value of the property at that time and to have reacquired the property at that time at a cost equal to that fair market value. Adjusted cost base (7) For the purpose of computing the adjusted cost base to a trust governed by a registered plan (other than a TFSA) of a property that is a transitional prohibited property for the trust, the cost to the trust of the property until the property is disposed of by the trust is deemed to be equal to the fair market value of the property, (a) in the case of a RRIF or RRSP, at the end of March 22, 2011; and (b) in the case of a RDSP or RESP, at the end of March 22, 2017. Prohibited investment status (8) Subsection (9) applies in respect of a property if (a) the property would, in the absence of subsection (9), have ceased at any time (in this subsection and subsection (9) referred to as the “relevant time”) to be a prohibited investment for a trust governed by a registered plan (other than a TFSA) of a controlling individual; (b) the property is a transitional prohibited property for the trust immediately before the relevant time; (c) in the case of a property held under a RRIF or RRSP, the controlling individual elected under subsection 207.05(4); and (d) the controlling individual elects in prescribed form that subsection (9) apply in respect of the property and the election is filed with the Minister on or before the day that is 90 days after the end of the taxation year of the controlling individual that includes the relevant time. Prohibited investment status (9) If this subsection applies in respect of a property, the property is deemed to be a prohibited investment at and after the relevant time for every trust governed by a registered plan (other than a TFSA) of the controlling individual referred to in paragraph (8)(a). Breakdown of marriage or common-law partnership (10) Subsection (11) applies in respect of a property if (a) the property is transferred at any time (in this subsection and subsection (11) referred to as the “transfer time”) by a trust (in this subsection and subsection (11) referred to as the “transferor trust”) governed by a RRIF or RRSP of a controlling individual (in this subsection and subsection (11) referred to as the “transferor”) under paragraph 146(16)(b) or subsection 146.3(14) to a trust (in subsection (11) referred to as the “recipient trust”) governed by a RRIF or RRSP of which the spouse or common-law partner or former spouse or common-law partner (in this subsection and subsection (11) referred to as the “recipient”) of the transferor is the controlling individual; (b) the property is a prohibited investment, and a transitional prohibited property, for the transferor trust immediately before the transfer time; (c) the transferor elected under subsection 207.05(4); (d) the transferor and the recipient — or, if the property is transferred as a consequence of the death of the transferor, the transferor’s legal representative and the recipient — jointly elect in prescribed form that subsection (11) apply in respect of the property and the election is filed with the Minister on or before the day that is 90 days after the end of the (i) recipient’s taxation year that includes the transfer time, if the property is transferred as a consequence of the death of the transferor, or (ii) transferor’s taxation year that includes the transfer time, in any other case; and (e) an amount (in subsection (11) referred to as the “designated amount”) is designated on the prescribed form described in paragraph (d) in respect of the property that (i) is not less than the adjusted cost base to the transferor trust of the property immediately before the transfer time, and (ii) does not exceed the greater of the amount determined under subparagraph (i) and the fair market value of the property at the transfer time. Breakdown of marriage or common-law partnership (11) If this subsection applies in respect of a property, (a) the property is deemed to be, at and after