Income Tax Act
Sections and provisions with full text and the judgments that cite each one.
Section 26 — Banks — inclusions in income
There shall be included in computing the income of a bank for its first taxation year that commences after June 17, 1987 and ends after 1987 the total of the total of the specific provisions of the…
Section 27 — Application of Part I to Crown corporation
This Part applies to a federal Crown corporation as if any income or loss from a business carried on by the corporation as agent of Her Majesty, or from a property of Her Majesty administered by the…
Section 27.1 — Emissions allowances
Notwithstanding section 10, for the purpose of computing a taxpayer’s income from a business, an emissions allowance shall be valued at the cost at which the taxpayer acquired it. If at any…
Section 28 — Farming or fishing business
For the purpose of computing the income of a taxpayer for a taxation year from a farming or fishing business, the income from the business for that year may, if the taxpayer so elects, be computed in…
Section 29 — Disposition of animal of basic herd class
Where a taxpayer has a basic herd of a class of animals and disposes of an animal of that class in the course of carrying on a farming business in a taxation year, if the taxpayer so elects in the…
Section 30 — Improving land for farming
Notwithstanding paragraphs 18(1)(a) and 18(1)(b), there may be deducted in computing a taxpayer’s income for a taxation year from a farming business any amount paid by the taxpayer before the end of…
Section 31 — Restricted farm loss
If a taxpayer’s chief source of income for a taxation year is neither farming nor a combination of farming and some other source of income that is a subordinate source of income for the taxpayer,…
Section 32 — Insurance agents and brokers
In computing a taxpayer’s income for a taxation year from the taxpayer’s business as an insurance agent or broker, no amount may be deducted under paragraph 20(1)(m) for the year in respect of…
Section 32.1 — Employee benefit plan deductions
Where a taxpayer has made contributions to an employee benefit plan in respect of the taxpayer’s employees or former employees, the taxpayer may deduct in computing the taxpayer’s income for a…
Section 33.1
[Repealed, 2013, c. 33, s. 4]
Section 34
[Repealed, 2017, c. 33, s. 7]
Section 34.1 — Additional Business Income
Where an individual (other than a graduated rate estate) carries on a business in a taxation year, a fiscal period of the business begins in the year and ends after the end of the year (in this…
Section 34.2 — Definitions
The definitions in this subsection apply in this section. adjusted stub period accrual of a corporation in respect of a partnership — in which the corporation has a significant interest at the end of…
Section 34.3 — Definitions
The definitions in this subsection and in subsection 34.2(1) apply in this section. actual stub period accrual , of a corporation in respect of a qualifying partnership for a taxation year, means the…
Section 35 — Prospectors and grubstakers
Where a share of the capital stock of a corporation is received in a taxation year by an individual as consideration for the disposition by the individual to the corporation of a mining property or…
Section 36
[Repealed, 2013, c. 40, s. 17]
Section 37 — Scientific research and experimental development
Where a taxpayer carried on a business in Canada in a taxation year, there may be deducted in computing the taxpayer’s income from the business for the year such amount as the taxpayer claims not…
Section 37.1
[Repealed, 1998, c. 19, s. 87(1)]
Section 37.2
[Repealed, 1998, c. 19, s. 87(1)]
Section 37.3
[Repealed, 1998, c. 19, s. 87(1)]
Section 38 — Taxable capital gain and allowable capital loss
For the purposes of this Act, subject to paragraphs (a.1) to (a.3), a taxpayer’s taxable capital gain for a taxation year from the disposition of any property is ½ of the taxpayer’s capital gain for…
Section 38.1 — Tax-deferred transaction — flow-through shares
If a taxpayer acquires a property (in this section referred to as the “acquired property”) that is included in a flow-through share class of property in the course of a transaction or series of…
Section 38.2 — Allocation of gain re certain gifts
If a taxpayer is entitled to an amount of an advantage in respect of a gift of property described in paragraph 38(a.1) or (a.2), those paragraphs apply only to that proportion of the taxpayer’s…
Section 39 — Meaning of capital gain and capital loss
For the purposes of this Act, a taxpayer’s capital gain for a taxation year from the disposition of any property is the taxpayer’s gain for the year determined under this Subdivision (to the extent…
Section 39.1 — Definitions
In this section, exempt capital gains balance of an individual for a taxation year that ends before 2005 in respect of a flow-through entity means the amount determined by the formula A - B - C - F…
Section 40 — General rules
Except as otherwise expressly provided in this Part a taxpayer’s gain for a taxation year from the disposition of any property is the amount, if any, by which if the property was disposed of in the…
Section 41 — Taxable net gain from disposition of listed personal property
For the purposes of this Part, a taxpayer’s taxable net gain for a taxation year from dispositions of listed personal property is 1/2 of the amount determined under subsection 41(2) to be the…
Section 42 — Dispositions subject to warranty
For the purposes of this Subdivision, an amount received or receivable by a person or partnership (referred to in this subsection as the “vendor”), as the case may be, as consideration for a…
Section 43 — General rule for part dispositions
For the purpose of computing a taxpayer’s gain or loss for a taxation year from the disposition of part of a property, the adjusted cost base to the taxpayer, immediately before the disposition, of…
Section 43.1 — Life estates in real property
Notwithstanding any other provision of this Act, if at any time a taxpayer disposes of a remainder interest in real property (except as a result of a transaction to which subsection 73(3) would…
Section 44 — Exchanges of property
Where at any time in a taxation year (in this subsection referred to as the “initial year”) an amount has become receivable by a taxpayer as proceeds of disposition of a capital property that is not…
Section 44.1 — Definitions
The definitions in this subsection apply in this section. ACB reduction of an individual in respect of a replacement share of the individual in respect of a qualifying disposition of the individual…
Section 45 — Property with more than one use
For the purposes of this Subdivision the following rules apply: where a taxpayer, having acquired property for some other purpose, has commenced at a later time to use it for the purpose of gaining…
Section 46 — Personal-use property
Where a taxpayer has disposed of a personal-use property (other than an excluded property disposed of in circumstances to which subsection 110.1(1), or the definition total charitable gifts , total…
Section 47 — Identical properties
Where at any particular time after 1971 a taxpayer who owns one property that was or two or more identical properties each of which was, as the case may be, acquired by the taxpayer after 1971,…
Section 47.1 — Application of s. 47.1 of R.S.C., 1952, c. 148
Words and expressions used in subsections 47.1(27) and 47.1(28) have the meanings assigned to them by subsections 47.1(1) to (26) of the Income Tax Act , chapter 148 of the Revised Statutes of…
Section 48
[Repealed, 1994, c. 21, s. 19(1)]
Section 48.1 — Gain when small business corporation becomes public
Where at any time in a taxation year an individual owns capital property that is a share of a class of the capital stock of a corporation that, at that time, is a small business corporation, and…
Section 49 — Granting of options
Subject to subsections 49(3) and 49(3.1), for the purposes of this Subdivision, the granting of an option, other than an option to acquire or to dispose of a principal residence, an option granted by…
Section 49.1 — No disposition where obligation satisfied
For greater certainty, where a taxpayer acquires a particular property in satisfaction of an absolute or contingent obligation of a person or partnership to provide the particular property pursuant…
Section 50 — Debts established to be bad debts and shares of bankrupt corporation
For the purposes of this Subdivision, where a debt owing to a taxpayer at the end of a taxation year (other than a debt owing to the taxpayer in respect of the disposition of personal-use property)…
Section 51 — Convertible property
Where a share of the capital stock of a corporation is acquired by a taxpayer from the corporation in exchange for a capital property of the taxpayer that is another share of the corporation (in this…
Section 51.1 — Conversion of debt obligation
Where a taxpayer acquires a bond, debenture or note of a debtor (in this section referred to as the “new obligation”) in exchange for a capital property of the taxpayer that is another bond,…
Section 52 — Cost of certain property the value of which included in income
In applying this Subdivision, an amount equal to the particular amount described by paragraph (d) shall be added in computing the cost at any time to a taxpayer of a property if the taxpayer acquired…
Section 53 — Adjustments to cost base
In computing the adjusted cost base to a taxpayer of property at any time, there shall be added to the cost to the taxpayer of the property such of the following amounts in respect of the property as…
Section 54 — Definitions
In this Subdivision, adjusted cost base to a taxpayer of any property at any time means, except as otherwise provided, where the property is depreciable property of the taxpayer, the capital cost to…
Section 54.1 — Exception to principal residence rules
A taxation year in which a taxpayer does not ordinarily inhabit the taxpayer’s property as a consequence of the relocation of the place of employment of the taxpayer or the taxpayer’s spouse or…
Section 54.2 — Certain shares deemed to be capital property
Where any person has disposed of property that consisted of all or substantially all of the assets used in an active business carried on by that person to a corporation for consideration that…
Section 55 — Definitions
In this section, distribution means a direct or indirect transfer of property of a corporation (referred to in this section as the “distributing corporation”) to one or more corporations (each of…
Section 56 — Amounts to be included in income for year
Without restricting the generality of section 3, there shall be included in computing the income of a taxpayer for a taxation year, any amount received by the taxpayer in the year as, on account or…