REVENUE CANADA TAXATION 
 
INTERPRETATION BULLETIN NUMBER: IT-264R 
 
DATE: October 19, 1984 
 
SUBJECT: SPECIAL RELEASE 
Part Dispositions 
 
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."