ARCHIVED - Part dispositions

From: Canada Revenue Agency

What the "Archived Content" notice means for interpretation bulletins

NO: IT-264RSR

DATE: October 19, 1984

SUBJECT: INCOME TAX ACT
Part Dispositions

REFERENCE: Paragraph 2 of IT-264R is cancelled and replaced by the following:

"2. The granting of an easement or a public right of way is a disposition of a part of the property in respect of which it is granted. For the purpose of section 43, the Department normally accepts an amount equal to the proceeds from such a disposition as being the reasonable portion of the adjusted cost base of the whole property attributable to the part disposed of in such cases as well as in cases where a portion of a property is expropriated in fee simple for use as a right of way, provided that:

(a) the area of the portion of the property that was expropriated or in respect of which an easement or right of way was granted is not more than 20% of the area of the total property and

(b) the amount of the compensation received is not more than 20% of the amount of the adjusted cost base of the total property."

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