Bill C-371
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2nd Session, 40th Parliament,
57-58 Elizabeth II, 2009
house of commons of canada
BILL C-371
An Act to amend the Income Tax Act (low-cost residential rental property)
R.S., c. 1 (5th Supp.)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. (1) Paragraph 39(1)(a) of the Income Tax Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v):
(vi) a rental property of the taxpayer if all of the proceeds from the disposition of that property are invested within that taxation year or the following taxation year in the purchase of low-cost residential rental property of value equal to or greater than the adjusted cost base or undepreciated capital cost of that property;
(2) Section 39 of the Act is amended by adding the following after subsection (1):
Definitions
(1.1) The definitions in this subsection apply in subparagraph 39(1)(a)(vi).
“low-cost residential rental property”
« immeuble d’habitation locatif à loyer modique »
« immeuble d’habitation locatif à loyer modique »
“low-cost residential rental property” has the meaning assigned to that term by the Income Tax Regulations.
“rental property”
« bien locatif »
« bien locatif »
“rental property” of a taxpayer means real property owned by the taxpayer, whether jointly with another person or otherwise, and used by the taxpayer in the taxation year in respect of which the expression is being applied principally for the purpose of gaining or producing gross revenue that is derived from the renting of apartments or other residential units that are located on the property.
Regulations
2. The Governor in Council shall, within six months after this Act receives royal assent, make regulations amending the Income Tax Regulations to define the term “low-cost residential rental property” and to provide for the rollover of recaptured depreciation on the sale of rental property in cases where all the proceeds from the disposition of that property are invested in the taxation year in which the property is disposed of or in the following taxation year in the purchase of low-cost residential rental property.
Coming into force
3. This Act comes into force on the same day that the regulations amending the Income Tax Regulations referred to in section 2 come into force.
Published under authority of the Speaker of the House of Commons
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