,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,,9COME ,,TAX ,,ACT
  ,PROP]TY ,TRANSF]S ,AF ,SEP>,N1
  ,DIVORCE & ,ANNUL;T
,NUMB]3 ,,IT-#CBE;,R#B
,DATE3 ,JANU>Y #G1 #AIID
,REF];E3 ,SUBSEC;N #GC7#A7 7AL SEC;NS
  #AC1 #BJ1 #GD.A & #GD.B1 SUBSEC;NS
  #GJ7#E7 & 7#F71 #GC7#A.A7 & 7#B71
  #GE7#B71 #AJD7#D71 #BDH7#BB7 & 7#BC7 &
  #BEB7#C7 & 7#D71 P>AGRAPHS #DJ7#B77G71
  #ED7B71 #ED7;I71 #EF7#A77B71 7C7 &
  7C4#A71 #FJ7B71 7C7 & 7C4#A7 & SEC;N
  #FEJJ (! ,REGUL,NS7

               ,APPLIC,N
    
  ,? BULLET9 REPLACES & C.ELS ,9T]PRET,N
,BULLET9 ,,IT-#CBE;,R DAT$ ,DECEMB] #BH1
#AIHB4                                #A
                ,SUMM>Y              A#A
    
  ,? BULLET9 4CUSSES TRANSF]S ( PROP]TY
"U SUBSEC;N #GC7#A71 : PROVIDES =A TAX-
DEF]R$ ROLLOV] :5 CAPITAL PROP]TY IS
TRANSF]R$ 6A SP\SE1 6A =M] SP\SE 9
SETTLE;T ( "RS >IS+ \ ( M>RIAGE1 6A
SP\SAL TRU/ OR1 9 M LIMIT$ CIRCUM/.ES1
6A =M] -MON-LAW SP\SE4 ,X AL -;TS ON !
EXT5D$ M1N+ ( 8SP\SE0 T EXT5DS ? ROLLOV]
6C]TA9 -MON-LAW SP\SES = #AIIC & LAT]
YE>S4 ,! BULLET9 EXPLA9S ! AVAILABIL;Y
&! ME*ANICS (! ROLLOV]1 Z WELL Z ! OP;N
( ELECT+ N 6H ? ROLLOV] APPLY4 ,X AL
4CUSSES C]TA9 RULES RELAT+ 6"PI;NS (
PROP]TY 9 : BO? SP\SES H AN 9T]E/ "U A
MATRIMONIAL PROP]TY REGIME 9 ! ,PROV9CE
( ,QUEBEC4






                                      #B
          ,4CUS.N & ,9T]PRET,N       B#A
       ,SUBSEC;N #GC7#A7 ,ROLLOV]
    
#A4 ,SUBSEC;N #GC7#A7 ALL[S CAPITAL
  PROP]TY 6BE TRANSF]R$ 2T LIV+ P]SONS
  ON A TAX-DEF]R$ ROLLOV] BASIS TO3
  7A7 ! SP\SE (A TAXPAY] 7SEE #G 2L72
  7B7 ! =M] SP\SE (A TAXPAY]1 9 SETTLE;T
    ( "RS >IS+ \ ( _! M>RIAGE2
  7C7 A SP\SAL TRU/ 7SEE #H 2L72 OR
--------------------------------------#B
  7D7 9 C]TA9 CASES1 6A =M] 8-MON-LAW0
    SP\SE 7SEE #AA & #AB 2L74
  ,UN.S ! TAXPAY] 7! TRANSF]OR7 ELECTS N
  6H ! ROLLOV] APPLY 7SEE #E 2L71 !
  R1LIZ,N ( A3RU$ GA9S & LOSSES1 9CLUD+
  ANY T]M9AL LOSSES OR ! RECAPTURE (
  CAPITAL CO/ ALL[.E1 IS PO/PON$ UNTIL !
  RECIPI5T 7! SP\SE1 =M] SP\SE OR TRU/7
  4POSES OR IS DEEM$ 64POSE (! PROP]TY4
  ,! VALUES OR AM.TS T APPLY 6SUBSEC;N
  #GC7#A7 ROLLOV]S >E 4CUSS$ 9 #C & #D
  2L4 ,"S EXAMPLES ( H[ SUBSEC;N #GC7#A7
  OP]ATES >E 3TA9$ 9 ! CURR5T V].N (
  ,,IT-#BJI1 ,9T]-,VIVOS ,GIFTS (     #C
             ,,IT-#CBE;,R#B          A#B
  ,CAPITAL ,PROP]TY 6,9DIVIDUALS
  ,DIRECTLY OR ,"? ,TRU/S4
#B4 ,! PROP]TY TRANSF]R$ M/ 2 A CAPITAL
  PROP]TY Z DEF9$ 0P>AGRAPH #ED7B71
  M1N+3
  7A7 ANY DEPRECIA# PROP]TY (!
    TRANSF]OR1 &
  7B7 ANY O!R PROP]TY T :5 4POS$ ( WD
    RESULT 9 A CAPITAL GA9 OR CAPITAL
    LOSS 6! TRANSF]OR4
  ,= SUBSEC;N #GC7#A7 6APPLY1 BO? !
  TRANSF]OR &! RECIPI5T M/ 2 RESID5T 9
  ,CANADA AT ! "T (! TRANSF]4 ,? ROLLOV]
  APPLIES 6TRANSF]S 6A SP\SE OR A SP\SAL
  TRU/ AT ANY "T AF #AIGA4 ,TRANSF]S 6A
  =M] SP\SE 9 SETTLE;T ( "RS >IS+ \ (
  M>RIAGE1 Z WELL Z C]TA9 TRANSF]S 6A
  =M] -MON-LAW SP\SE 7Z 4CUSS$ 9 #H & #I
  2L71 >E ONLY ELIGI# IF ! TRANSF] TAKES
  PLACE AF #AIGG4



                                      #D
          ,DEPRECIA# ,PROP]TY        B#B
    
#C4 ,P>AGRAPH #GC7#A77E7 PROVIDES T1 9 !
  CASE ( DEPRECIA# PROP]TY1 ! TRANSF]OR
  IS DEEM$ 6H RCVD PROCE$S EQUAL 6!
  UNDEPRECIAT$ CAPITAL CO/ (! PROP]TY4
  ,! RECIPI5T IS DEEM$ 6H ACQUIR$ !
  PROP]TY =! SAME AM.T4 ,IF ! TRANSF]OR
  HAS M ?AN "O PROP]TY 9 A PRESCRIB$
  CLASS ( DEPRECIA# PROP]TY1 B IS
  TRANSF]R+ ONLY "P (! PROP]TY 9 T
  CLASS1 ! UNDEPRECIAT$ CAPITAL CO/ ( T
  PROP]TY IS TRANSF]R$ 9 PROPOR;N 6XS
  FAIR M>KET VALUE Z DET]M9$ IMMLY 2F !
  "T ( TRANSF]1 Z FOLL[S3

  ,FAIR ,M>KET ,VALUE (! ,TRANSF]R$
    ,PROP]TY DIVID$ 0,FAIR ,M>KET ,VALUE
    ( ,ALL ! ,PROP]TY ( T ,CLASS
    MULTIPLI$ 0,UNDEPRECIAT$ ,CAPITAL
    ,CO/ ( T ,CLASS
  
  ,SUBSEC;N #GC7#B7 APPLIES 6TRANSF]S (
  DEPRECIA# PROP]TY ": ! TRANSF]OR'S
  CAPITAL CO/ IS M ?AN ! RECIPI5T'S   #E
             ,,IT-#CBE;,R#B          C#B
  CO/ DET]M9$ "U P>AGRAPH #GC7#A77E74 ,9
  S* CASES1 =! PURPOSES ( SEC;NS
--------------------------------------#C
  #AC & #BJ & ANY REGUL,NS MADE "U
  P>AGRAPH #BJ7#A77A71 SUBSEC;N #GC7#B7
  DEEMS ! CAPITAL CO/ 6! RECIPI5T (!
  DEPRECIA# PROP]TY 6BE ! SAME AM.T T 0
  ! CAPITAL CO/ (! PROP]TY 6! TRANSF]OR4
  ,ANY CAPITAL CO/ ALL[.E ALR CLAIM$ = T
  PROP]TY 0! TRANSF]OR IS DEEM$ 6H BE5
  ALL[$ 6! RECIPI5T 9 YE>S PRIOR 6!
  TRANSF]4

        ,NON-DEPRECIA# ,PROP]TY
    
#D4 ,P>AGRAPH #GC7#A77F7 PROVIDES T ":
  NON-DEPRECIA# PROP]TY1 S* Z L& OR
  P]SONAL-USE PROP]TY1 IS TRANSF]R$1 !
  TRANSF]OR IS DEEM$ 6H RCVD PROCE$S
  EQUAL 6! ADJU/$ CO/ BASE (! "PICUL>
  PROP]TY4 ,! RECIPI5T IS DEEM$ 6H
  ACQUIR$ ! PROP]TY =! SAME AM.T4

                                      #F
        ,ELEC;N ,N 6,H ,SUBSEC;N     A#C
        #GC7#A7 ,ROLLOV] ,APPLY
    
#E4 ,IF ! 3DI;NS 9 SUBSEC;N #GC7#A7 >E
  MET1 ! ROLLOV] APPLIES AUTOMATIC,Y4
  ,H["E1 = TRANSF]S ( PROP]TY AF #AIGI1
  ! TRANSF]OR MAY ELECT1 ON A PROP]TY
  0PROP]TY BASIS1 N 6H ! ROLLOV] APPLY
  6! PROP]TY TRANSF]R$4 ,9 S* A CASE1 !
  G5]AL RULES 9 SEC;N #FI APPLY 6ANY
  NON->M'S L5G? TRANSF]S OR GIFTS &!
  TRANSF]OR IS G5],Y 3SID]$ 6H 4POS$ (!
  PROP]TY = PROCE$S EQUAL 6! FAIR M>KET
  VALUE (! PROP]TY AT ! "T ( TRANSF]4 ,Z
  A RESULT1 ! TRANSF]OR W R1LIZE ANY
  CAPITAL GA9 OR RECAPTURE ( CAPITAL CO/
  ALL[.E OR SU/A9 ANY CAPITAL LOSS OR
  T]M9AL LOSS AT ! "T (! TRANSF]4 ,!
  RECIPI5T (! PROP]TY W 2 3SID]$ 6H
  ACQUIR$ ! PROP]TY = AN AM.T EQUAL 6!
  TRANSF]OR'S PROCE$S ( 4POSI;N4
#F4 ,"! IS NO (FICIAL =M =! ELEC;N N 6H
  ! SUBSEC;N #GC7#A7 ROLLOV] APPLY4 ,?
  ELEC;N IS NORM,Y MADE 0! TRANSF]OR
  SIMPLY REPORT+ ! FULL TAX           #G
             ,,IT-#CBE;,R#B          B#C
  3SEQU;ES (! 4POSI;N ON 8 OR H] ,9COME
  ,TAX ,RETURN =! YE> (! TRANSF]4 ,?
  ELEC;N MAY RESULT 9 ! TRANSF]OR R1LIZ+
  A CAPITAL GA9 AG/ : ANY EXI/+ CAPITAL
  LOSSES OR UNUS$ CAPITAL GA9S DEDUC;N
  MAY 2 APPLI$4 7,H["E1 IF ! TRANSF]OR
  &! RECIPI5T REMA9 SP\SES1 A CAPITAL
  LOSS R1LIZ$ ON S* A 4POSI;N ( PROP]TY
  MAY 2 4ALL[$ Z A 8SUP]FICIAL LOSS0
  PURSUANT 6P>AGRAPH #ED7;I7 &
  SUBP>AGRAPH #DJ7#B77G77;I747

     ,M1N+ ( ,SP\SE OR ,=M] ,SP\SE
    
#G4 ,= TRANSF]S ( PROP]TY 2F #AIIC1 !
  T]M 8SP\SE0 9 ? BULLET9 REF]S 6P]SONS
  :O >E LEG,Y M>RI$ 6EA* O!R4 ,H["E1 AF
  #AIIB1 ! T]M 8SP\SE0 HAS AN EXT5D$
  M1N+ = ALL PURPOSES (! ,ACT 9CLUD+
  PROP]TY TRANSF]S "U SUBSEC;N #GC7#A74
  ,"U SUBSEC;N #BEB7#D71


                                      #H
             ,,IT-#CBE;,R#B           #D
  TWO 9DIVIDUALS (! OPPOSITE SEX W 2
  3SID]$ 6BE SP\SES ( EA* O!R :5 !Y >E
  COHABIT+ 9 A 3JUGAL REL,N%IP & EI
  7A7 !Y H S COHABIT$ "?\T ! PREC$+ #AB
    MON?S1 OR
  7B7 !Y >E ! NATURAL OR ADOPTIVE P>5TS
    (! SAME *4
  ,G5],Y1 9 CASES (! ANNUL;T ( EI VOID
  OR VOIDA# M>RIAGES1 PROVI.NS 9 ! ,ACT
  RELAT+ 6SP\SES W APPLY 6! "PIES (
  ANNULL$ M>RIAGES 2T ! "T (! SUPPOS$
  M>RIAGE &! DECL>,N ( ANNUL;T4
  ,SUBSEC;N #BEB7#C7 PROVIDES T1 =
  PURPOSES ( SUBSEC;N #GC7#A71 8SP\SE0 &
  8=M] SP\SE0 9CLUDES A "PY 6A VOID OR
  VOIDA# M>RIAGE1 Z ! CASE MAY BE1 )!
  RESULT T A =M] SP\SE 9CLUDES BO? A
  DIVORC$ P]SON &A "PY 6A M>RIAGE : HAS
  BE5 ANNULL$4




                                      #I
      ,TRANSF]S 6A ,=M] ,-MON-,LAW   A#D
                 ,SP\SE
    
#H4 ,C]TA9 TRANSF]S ( CAPITAL PROP]TY
  MADE AF ,JULY #AC1 #AIIJ & 2F #AIIC 6A
  =M] -MON-LAW SP\SE >E SUBJECT 6!
  SUBSEC;N #GC7#A7 ROLLOV]4 ,6QUALIFY1 !
  TRANSF] M/ BE3
  7A7 MADE 6AN 9DIVIDUAL (! OPPOSITE SEX
    ) :OM ! TAXPAY] COHABIT$ 9 A 3JUGAL
    REL,N%IP 2F ! DATE (! ORD]2 &
  7B7 MADE PURSUANT 6AN ORD] = SUPPORT
    OR MA9T5.E (! 9DIVIDUAL1 ": T ORD]
    IS MADE 0A -PET5T TRIBUNAL 9 A3ORD.E
    )! APPLICA# PROV9CIAL LAWS4
  ,Z 9DICAT$ 9 #G ABV1 ! DEF9I;N (
  8SP\SE0 AF #AIIB 9CLUDES _M 8-MON-LAW0
  REL,N%IPS4
#I4 ,TRANSF]S ( CAPITAL PROP]TY MADE 0A
  TAXPAY] 2F ,JULY #AD1 #AIIJ PURSUANT
  6A DECREE1 ORD] OR JUDG;T (A -PET5T
  TRIBUNAL 9 A3ORD.E ) PRESCRIB$
  PROVI.NS (! LAW (A PROV9CE1 & MADE 6AN
  9DIVIDUAL :O 0 ! TAXPAY]'S "PN] 9 A
  -MON-LAW REL,N%IP1 >E TR1T$ 9 !    #AJ
             ,,IT-#CBE;,R#B          B#D
  SAME WAY Z TRANSF]S 6A =M] SP\SE1 IF !
  9DIVIDUAL3
  7A7 _H 5T]$ 96A WRITT5 AGREE;T )!
    TAXPAY] 9 A3ORD.E ) S* PROVI.NS1 OR
  7B7 _H BE5 A "PN] )! TAXPAY] 9 A -MON-
    LAW REL,N%IP ( "S P]MAN;E Z DESCRIB$
    9 PRESCRIB$ PROVI.NS (! LAW (A
    PROV9CE4
  ,! RELEVANT PROVI.NS (! PROV9CIAL LAWS
  >E PRESCRIB$ 0SUBSEC;N #FEJJ7#A7 (!
  ,REGUL,NS4 ,AL? ONLY PROVI.NS (!
  ,ONT>IO ,FAMILY ,LAW ,RE=M ,ACT1
  #AIGH1 D1L+ ) TRANSF]S (
--------------------------------------#E
  PROP]TY 6SATISFY SUPPORT OBLIG,NS >E
  ACTU,Y PRESCRIB$1 ? IS 3SID]$ 69CLUDE
  SIMIL> PROVI.NS "U ! ,ONT>IO ,FAMILY
  ,LAW ,ACT4





                                     #AA
       ,TRANSF] 6A ,SP\SAL ,TRU/     A#E
    
#AJ4 ,P>AGRAPH #GC7#A77C7 ALL[S ROLLOV]
  TR1T;T :5 CAPITAL PROP]TY IS TRANSF]R$
  6:AT IS "KN Z A SP\SAL TRU/4 ,? IS A
  TRU/ CR1T$ 0! TAXPAY] 7! TRANSF]OR7 "U
  :3
  7A7 ! TAXPAY]'S SP\SE IS 5TITL$ 6RCV
    ALL (! 9COME (! TRU/ T >ISES 2F 8 OR
    H] D1?2 &
  7B7 NO P]SON EXCEPT ! SP\SE MAY1 2F !
    SP\SE'S D1?1 RCV OR O!RWISE OBTA9 !
    USE ( ANY (! 9COME OR CAPITAL (!
    TRU/4
#AA4 ,A SP\SAL TRU/ 3T9UES 6BE A SP\SAL
  TRU/ EV5 AF A DIVORCE OR AN ANNUL;T4
  ,SUBSEC;N #AJD7#D7 W APPLY S T !
  SP\SAL TRU/ IS NORM,Y DEEM$ 64POSE (
  XS CAPITAL PROP]TY1 O!R ?AN DEPRECIA#
  PROP]TY1 AT FAIR M>KET VALUE ON ! D1?
  (! SP\SE4 7,SPECIAL RULES APPLY 6PRE-
  #AIGB SP\SAL TRU/S47


                                     #AB
      ,TRU/ ,CR1T$ 6,MAKE ,ALIMONY   B#E
          OR ,MA9T5.E ,PAY;TS
    
#AB4 ,:5 A TAXPAY] CR1TES A TRU/ 6MAKE
  ALIMONY OR MA9T5.E PAY;TS 6A SP\SE OR
  =M] SP\SE & SUBSEC;N #GE7#B7 APPLIES
  6! TRU/1 ! TRU/EE IS 3SID]$ 6BE ACT+ Z
  AN AG5T =! TAXPAY]4 ,! 9COME & TAXA#
  CAPITAL GA9S (! TRU/ >E DEEM$ 6BE !
  9COME & TAXA# CAPITAL GA9S (! TAXPAY]
  & >E TAXA# 9 ! TAXPAY]'S H&S4 ,H["E1 !
  TAXPAY] IS ALL[$ A DEDUC;N "U P>AGRAPH
  #FJ7B71 7C7 OR 7C4#A7 IF ! PAY;TS
  O!RWISE QUALIFY &! AM.T IS TAXA# 6!
  SP\SE "U P>AGRAPH #EF7#A77B71 7C7 OR
  7C4#A74

            ,M1N+ ( ,TRANSF]
    
#AC4 ,! T]M 8TRANSF]0 HAS A BROAD M1N+ T
  5COMPASSES VIRTU,Y ANY M1NS 0: [N]%IP
  OR TITLE 6PROP]TY IS 3VEY$ F "O P]SON
  6ANO!R1 OR 6A TRU/4 ,X "!=E 9CLUDES A
  SALE ( PROP]TY1 :E!R OR N X 0 MADE AT
                                     #AC
             ,,IT-#CBE;,R#B          C#E
  FAIR M>KET VALUE4 ,H["E1 X DOES N
  9CLUDE A G5U9E LOAN4
#AD4 ,9 A4I;N1 "S PROV9CES H 5ACT$
  LEGISL,N DCLG T A SP\SE HAS A SPECIFI$
  9T]E/ 9 C]TA9 PROP]TY [N$ 0! O!R SP\SE
  OR PROVID+ = S* A DET]M9,N 0A
--------------------------------------#F
  C\RT4 ,PROP]TY T PASSES "U ^! PROVI.NS
  MAY N 3/ITUTE A 8TRANSF]0 "U ! G5]AL
  LEGAL M1N+4 ,= GRT] C]TA9TY1 SUBSEC;N
  #GC7#A.A7 DEEMS A TRANSF] 6H O3URR$ 9
  _M ( ^! CASES4 ,SUBSEC;N #GC7#A.A7
  APPLIES IF1 0! OP],N (! PROVI.NS (A
  PROV9CIAL LAW PRESCRIB$ 0SUBSEC;N
  #FEJJ7#B7 (! ,REGUL,NS1 OR 0VIRTUE (A
  DECREE1 ORD] OR JUDG;T (A -PET5T
  TRIBUNAL MADE 9 A3ORD.E ) S* PROVI.NS1
  A RECIPI5T REF]R$ 6IN #A ABV
  7A7 ACQUIRES OR IS DEEM$ 6H ACQUIR$1
  7B7 IS DEEM$ OR DCLD 6H OR IS AW>D$1
    OR
  7C7 HAS VE/$ 9 HM OR H]1
  
                                     #AD
             ,,IT-#CBE;,R#B          A#F
  PROP]TY T 0 A CAPITAL PROP]TY (!
  TRANSF]OR 7OR WD H BE5 B = S*
  PROVI.NS74 ,9 ^! CASES1 T PROP]TY IS1
  =! PURPOSES ( SUBSEC;N #GC7#A71 DEEM$
  6BE A CAPITAL PROP]TY T HAS BE5
  TRANSF]R$ 6! RECIPI5T4 7,! REF];ES
  6PROV9CIAL LAWS 9 SUBSEC;N #FEJJ7#B7
  (! ,REGUL,NS >E 3SID]$ 69CLUDE SIMIL>
  PROVI.NS "U ! CURR5T FAMILY LAWS ( ^?
  PROV9CES47

,NOTE3
  ,IF A M1SURE 3TA9$ 9 ! DRAFT ,AM5D;TS
  6! ,9COME ,TAX ,ACT & ,REGUL,NS ISSU$
  0! ,M9I/] ( ,F9.E ON ,AUGU/ #CJ1
  #AIIC1 IS 5ACT$ Z PROPOS$1 SUBSEC;N
  #GC7#A.A7 W N 2 LIMIT$ 6TRANSF]S MADE
  PURSUANT 6PROV9CIAL LAWS T >E
  PRESCRIB$ 0,REGUL,N4 ,Z AM5D$1
  SUBSEC;N #GC7#A.A7 W APPLY 6A TRANSF]
  (! TYPE DESCRIB$ 9 #AD ABV T IS MADE
  AF ,JULY #AC1 #AIIJ1 PROVID$ ! TRANSF]
  IS MADE "U ! LAWS (A PROV9CE OR 2C (A
  DECREE1 ORD] OR JUDG;T (A -PET5T   #AE
             ,,IT-#CBE;,R#B          B#F
  TRIBUNAL MADE 9 A3ORD.E ) S* PROV9CIAL
  LAWS4

     ,TRANSF] 6,SATISFY ,OBLIG,N =
           ,EQUALIZ,N ,PAY;T
    
#AE4 ,9 "S CASES1 AN OBLIG,N 6MAKE AN
  8EQUALIZ,N PAY;T0 >IS+ "U ! ,ONT>IO
  ,FAMILY ,LAW ,ACT1 OR A SIMIL> PROVI.N
  "U ! LAW ( ANO!R PROV9CE1 MAY 2
  SATISFI$ OR SETTL$ 0A TRANSF] (A
  CAPITAL PROP]TY 2T ! SP\SES OR =M]
  SP\SES4 ,S* A TRANSF] WD 2 3SID]$ 6BE
  9 SETTLE;T ( "RS >IS+ \ (! M>RIAGE =!
  PURPOSES ( P>AGRAPH #GC7#A77B71 & IS
  ELIGI# =! ROLLOV] PROVID$ X O!RWISE
  QUALIFIES4

           ,ATTRIBU;N ,RULES
    
#AF4 ,EV5 IF A SUBSEC;N #GC7#A7 ROLLOV]
  APPLIES 6A TRANSF]1 CAPITAL PROP]TY
  TRANSF]R$ 2T SP\SES MAY / 2 SUBJECT 6!
  RULES 9 SEC;NS                     #AF
             ,,IT-#CBE;,R#B           #G
  #GD.A & #GD.B 3C]N+ ! ATTRIBU;N (
  9COME & CAPITAL GA9S 6! TRANSF]OR4 ,!
  ATTRIBU;N RULES >E 4CUSS$ 9 GRT]
  DETAIL 9 ! CURR5T V].N ( ,,IT-#EAA1
  ,9T]SP\SAL & ,C]TA9 ,O!R ,TRANSF]S &
  ,LOANS ( ,PROP]TY ,MADE ,AF ,MAY #BB1
  #AIHE1 &! FOLL[+ PO9TS >E NOTEWOR?Y3
  7A7 ,! ATTRIBU;N RULES C1SE 6APPLY AF
    DIVORCE4
  7B7 ,! RULES 3C]N+ ! ATTRIBU;N ( 9COME
    D N APPLY =! P]IOD T ! "PIES >E LIV+
    SEP>ATE & A"P 0R1SON (A M>RIAGE
    BR1KD[N4
  7C7 ,! RULES 3C]N+ ! ATTRIBU;N (
    CAPITAL GA9S & LOSSES D N APPLY
    64POSI;NS ( PROP]TY :ILE ! "PIES >E
    LIV+ SEP>ATE & A"P 0R1SON (A M>RIAGE
    BR1KD[N1 IF ! "PIES JO9TLY ELECT N
    6H SEC;N #GD.B APPLY4
  7D7 ,! ATTRIBU;N RULES D N APPLY IF
    FAIR M>KET 3SID],N IS PD =! PROP]TY
    TRANSF]R$ & AN ELEC;N IS MADE 6N H !
    SUBSEC;N #GC7#A7 ROLLOV] APPLY4
                                     #AG
      ,PROP]TY ,SUBJECT 6AN ,9T]E/   A#G
      (A ,SP\SE ,"U A ,MATRIMONIAL
     ,REGIME 9 ! ,PROV9CE ( ,QUEBEC
    
#AG4 ,SUBSEC;NS #BDH7#BB7 & 7#BC7 SET \
  RULES T APPLY AF ,JULY #AC1 #AIIJ
  6GOV]N PROP]TY 9 : BO? SP\SES H AN
  9T]E/ "U A MATRIMONIAL REGIME & : "!=E
  CD 2 SUBJECT 6"PI;N ON 4SOLU;N ( T
  MATRIMONIAL REGIME4 ,^! RULES ONLY
  APPLY 6MATRIMONIAL PROP]TY REGIMES
  CR1T$ "U ! CIVIL LAW 9 ,QUEBEC 7OR 9
  ANO!R CIVIL LAW JURISDIC;N7 T 9VOLVE
  "S -MON 9T]E/ 2T ! SP\SES1 S* Z A
  -MUN;Y ( PROP]TY4 ,^! RULES CL>IFY !
  TAX TR1T;T (! 9COME & CAPITAL GA9S
  ATTRIBUTA# 6! PROP]TY DUR+ !
  MATRIMONIAL REGIME & ^U XS 4SOLU;N4
#AH4 ,PROP]TY T HAS BE5 3T9U\SLY [N$ 0"O
  SP\SE S9CE 2F ! PROP]TY 2CAME SUBJECT
  6! MATRIMONIAL REGIME IS DEEM$
  0P>AGRAPH #BDH7#BB77A7 6BE [N$
  EXCLUSIVELY 0T SP\SE1 EV5 ?\< ! O!R
  SP\SE HAS AN 9T]E/ 9 ! PROP]TY4 ,ACLY1
  ALL 9COME & CAPITAL GA9S F T       #AH
             ,,IT-#CBE;,R#B          B#G
  PROP]TY :ILE X IS SUBJECT 6!
  MATRIMONIAL REGIME >E ATTRIBUTA# 6!
  [N] SP\SE4
#AI4 ,PROP]TY N MEET+ ! 3DI;NS 9 #AH ABV
  IS DEEM$ 0P>AGRAPH #BDH7#BB77B7 6BE
  [N$ EXCLUSIVELY 0! SP\SE :O HAS !
  ADM9I/R,N ( X1 )! SAME TAX 3SEQU;ES Z
  \TL9$ 9 #AH ABV4 ,? RULE WD APPLY
  6-MON PROP]TY T IS SUBJECT 6! "PICUL>
  MATRIMONIAL REGIME F ! MO;T X IS
  ACQUIR$4 ,X WD
--------------------------------------#H
  AL APPLY 6PROP]TY T 0 4POS$ ( OR GIFT$
  0"O SP\SE 9 FAV\R (! O!R DUR+ ! EXI/;E
  (! MATRIMONIAL REGIME4
#BJ4 ,SUBSEC;N #BDH7#BC7 DEEMS A TRANSF]
  6H O3URR$ Z A RESULT ( C]TA9 PROP]TY
  ALLOC,NS ON ! 4SOLU;N (! MATRIMONIAL
  REGIME4 ,A MATRIMONIAL REGIME MAY 2
  4SOLV$
  7A7 0! D1? (A SP\SE1
  7B7 ^U SEP>,N OR DIVORCE1 OR
  7C7 0A *ANGE F "O TYPE ( MATRIMONIAL
    REGIME 6ANO!R1 E4G41 F A         #AI
             ,,IT-#CBE;,R#B          A#H
    -MUN;Y ( PROP]TY REGIME 6A "PN]%IP (
    ACQUE/S OR1 IF ! "PIES MOVE F
    ,QUEBEC1 6A SY/EM 9 PLACE 9 ANO!R
    JURISDIC;N4
#BA4 ,^U 4SOLU;N (! MATRIMONIAL REGIME1
  ! PROP]TY 9 : ! SP\SES H A -MON 9T]E/
  MAY 2 ALLOCAT$ 2T ! SP\SES 7OR 2T A
  SP\SE &! E/ATE (A DEC1S$ SP\SE1 Z !
  CASE MAY BE74 ,? ALLOC,N IS REF]R$ 6Z
  A "PI;N 9 CIVIL LAW & OP]ATES Z A
  JUDICIAL DIVI.N ( PROP]TY4 ,SUBSEC;N
  #BDH7#BC7 PROVIDES T ! ALLOCAT$
  PROP]TY IS DEEM$ 6H BE5 TRANSF]R$ F "O
  SP\SE 6! O!R IF1 IMMLY AF A 4SOLU;N (A
  MATRIMONIAL REGIME1 ! SP\SE 6:OM A
  PROP]TY IS ALLOCAT$ IS N ! SAME SP\SE
  7OR T SP\SE'S E/ATE7 :O 0 ! DEEM$ [N]
  (! PROP]TY IMMLY 2F ! 4SOLU;N4 7,Z
  4CUSS$ 9 #AH & #AI ABV1 SUBSEC;N
  #BDH7#BB7 SETS \ ! RULES 6DET]M9E :O 0
  ! DEEM$ [N] 2F ! 4SOLU;N47 ,? DEEM$
  TRANSF] TAKES PLACE IMMLY 2F ! 4SOLU;N
  (! MATRIMONIAL REGIME4 ,ACLY1 !
  R1LIZ,N ( A3RU$ GA9S MAY 2         #BJ
             ,,IT-#CBE;,R#B          B#H
  PO/PON$ 0VIRTUE (! SUBSEC;N #GC7#A7
  ROLLOV]4 ,": ! 3JUGAL REL,N%IP 3T9UES
  &! 4SOLU;N (! MATRIMONIAL PROP]TY
  REGIME >ISES Z A RESULT (A SIMPLE
  *ANGE F "O =M ( MATRIMONIAL REGIME
  6ANO!R 7E4G4 F -MUN;Y ( PROP]TY
  6SEP>,N ( PROP]TY71 ! ATTRIBU;N RULES
  4CUSS$ 9 #AF ABV W AL APPLY 6S* A
  TRANSF]4
#BB4 ,9 ! CASE (A 4SOLU;N (A MATRIMONIAL
  REGIME FOLL[+ ! D1? ( "O SP\SE1 A
  DEEM$ TRANSF] "U SUBSEC;N #BDH7#BC7
  RESULT+ F AN ALLOC,N ( PROP]TY 6A
  SP\SE WD O3UR IMMLY 2F ! DEEM$ 4POSI;N
  ON D1? SET \ 9 SUBSEC;NS #GJ7#E7 &
  7#F74 ,Z A RESULT1 ANY PROP]TY S
  ALLOCAT$ 6! DEC1S$ SP\SE OR 6T SP\SE'S
  E/ATE1 WD AL 2 SUBJECT 6! DEEM$
  4POSI;N ON D1? RULES 9 ! H&S (! DEC1S$
  SP\SE4 ,SIMIL>LY1 PROP]TY DEEM$ 6BE
  [N$ 0! DEC1S$ SP\SE & T 0 ALLOCAT$ ^U
  ! 4SOLU;N (! MATRIMONIAL REGIME 6!
  SURVIV+ SP\SE W 2 DEEM$ 6H BE5
  TRANSF]R$ 6! SURVIV+ SP\SE         #BA
             ,,IT-#CBE;,R#B           #I
  IMMLY 2F ! DEEM$ 4POSI;N ON ! D1? (!
  DEC1S$ SP\SE4 ,Z A RESULT1 ! DEEM$
  4POSI;N ON D1? SET \ 9 SUBSEC;NS
  #GJ7#E7 & #GJ7#F7 W N APPLY AT ? "T 6?
  PROP]TY 9 ! H&S (! SURVIV+ SP\SE4

,NOTE3
  ,! PREC$+ -;TS MAY 2 A6ECT$ 0! DRAFT
  ,AM5D;TS 6! ,9COME ,TAX ,ACT &
  ,REGUL,NS ISSU$ 0! ,M9I/] ( ,F9.E ON
  ,AUGU/ #CJ1 #AIIC4 ,IF 5ACT$ Z
  PROPOS$1 ! DRAFT LEGISL,N AM5DS
  SUBSEC;N #BDH7#BC7 & A4S SUBSEC;N
  #BDH7#BC.A74 ,3SEQU5TLY1 9 CASES (
  4SOLU;N OR D1? O3URR+ AF ,DECEMB] #BA1
  #AIIB1 PROP]TY TRANSF]R$ 2T SP\SES Z A
  RESULT (! 4SOLU;N (A MATRIMONIAL
  REGIME O3URR+ Z A 3SEQU;E (! D1? (A
  SP\SE W N 2 GOV]N$ 0SUBSEC;N #BDH7#BC7
  Z EXPLA9$ 9 #BB ABV1 B R 0NEW SUBSEC;N
  #BDH7#BC.A71 Z EXPLA9$ 9 #BC 2L4


                                     #BB
           ,TRANSF]S ,AF ,D1?        A#I
    
#BC4 ,SUBSEC;N #BDH7#BC.A7 W APPLY
  6C]TA9 TRANSF]S ( PROP]TY O3URR+ AF !
  D1? (A TAXPAY] :O DIES AF ,DECEMB]
  #BA1 #AIIB1 IF ! TRANSF] IS MADE Z A
  3SEQU;E (! LAWS (A PROV9CE RELAT+
  6SP\SES' 9T]E/S 9 PROP]TY T RESULT F
  M>RIAGE4 ,? SUBSEC;N APPLIES N J
  6TRANSF]S RESULT+ F "RS "U MATRIMONIAL
  REGIMES "U ! CIVIL LAW ( ,QUEBEC1 B AL
  6TRANSF]S MADE Z A 3SEQU;E (! LAWS (
  O!R PROV9CES T PROVIDE =! %>+ (
  PROP]TY US$ 0SP\SES DUR+ M>RIAGE4 ,":
  ^! 3DI;NS >E MET1 SUBSEC;N #BDH7#BC.A7
  APPLIES Z DESCRIB$ 2L 6! FOLL[+ TWO
  SITU,NS4
  7A7 ,IF PROP]TY IS TRANSF]R$ 6! P]SON
    :O 0 ! TAXPAY]'S SP\SE AT ! "T (!
    TAXPAY]'S D1?1 T PROP]TY % 2 DEEM$
    6H BE5 4POS$ ( Z A 3SEQU;E (!
    TAXPAY]'S D1?4 ,Z A RESULT1 S*
    TRANSF]S MAY B5EFIT F ! TAX-DEF]R$
  
                                     #BC
             ,,IT-#CBE;,R#B          B#I
    ROLLOV] ( PROP]TY 2T SP\SES ON D1?1
    : IS PROVID$ = 9 SUBSEC;N #GJ7#F74
  7B7 ,IF PROP]TY IS TRANSF]R$ F ! P]SON
    :O 0 ! TAXPAY]'S SP\SE AT ! "T (!
    TAXPAY]'S D1? &! TRANSF] IS MADE 6T
    DEC1S$ TAXPAY]'S E/ATE1 T PROP]TY %
    2 DEEM$ 6H BE5 TRANSF]R$ IMMLY 2F !
    "T T IS IMMLY 2F ! D1? (! TAXPAY]4
    ,Z A RESULT1 S* TRANSF]S MAY B5EFIT
    F ! TAX-DEF]R$ ROLLOV] 2T LIV+
    SP\SES1 : IS PROVID$ = 9 SUBSEC;N
    #GC7#A74
-------------------------------------#AJ
  ,IF Y H ANY -;TS REG>D+ ! MATT]S
4CUSS$ 9 ? BULLET91 PL1SE S5D !M TO3
  ,DIRECTOR1 ,TE*NICAL ,PUBLIC,NS
  ,DIVI.N
  ,LEGISLATIVE & ,9T]GOV]N;TAL ,A6AIRS
  ,BRAN*
  ,REV5UE ,CANADA -- ,CU/OMS1 ,EXCISE &
  ,TAX,N
  #HGE ,H]ON ,ROAD
  ,OTTAWA1 ,ONT>IO
  ,K#A;,A #J;,L#H                    #BD
         ,EXPLAN,N ( ,*ANGES =       #AA
    ,9T]PRET,N ,BULLET9 ,,IT-#CBE;,R
    ,PROP]TY ,TRANSF]S ,AF ,SEP>,N1
          ,DIVORCE OR ,ANNUL;T
               ,9TRODUC;N
    
  ,! PURPOSE (! ,EXPLAN,N ( ,*ANGES IS
6GIVE ! R1SONS =! REVI.NS 6AN 9T]PRET,N
BULLET94 ,X \TL9ES REVI.NS T WE H MADE Z
A RESULT ( *ANGES 6! LAW1 Z WELL Z
*ANGES REFLECT+ NEW OR REVIS$ DE"P;TAL
9T]PRET,NS4

                ,OV]VIEW
    
  ,? BULLET9 UPDATES EXI/+ ,,IT-#CBE;,R1
: D1LS ) PROP]TY TRANSF]S ON SEP>,N &
DIVORCE1 PRIM>ILY 9 REL,N 6! ROLLOV]
AVAILA# "U SUBSEC;N #GC7#A7 (! ,ACT4 ,!
CURR5T REVI.N 0 "UTAK5 69CORPORATE A
NUMB] ( *ANGES 6SEC;NS #GC & #BDH 5ACT$
9 ,S4,C4 #AIIA1 C4#DI 7=M]LY ,BILL
;,C-#AH7 & 64CUSS ! EXT5D$ M1N+ (
8SP\SE0 T 0 9TRODUC$ 9 ,S4,C4 #AIIC1
C4#BD 7=M]LY ,BILL ;,C-#IB74         #BE
             ,,IT-#CBE;,R#B         A#AA
  ,! BULLET9 IS A6ECT$ 0M1SURES 3TA9$ 9
! DRAFT ,AM5D;TS 6! ,9COME ,TAX ,ACT &
,REGUL,NS ISSU$ 0! ,M9I/] ( ,F9.E ON
,AUGU/ #CJ1 #AIIC & >E REFLECT$ 9 !
NOTES AT ! 5D ( P>AGRAPHS #AD & #BB4

      ,LEGISLATIVE & ,O!R ,*ANGES
    
  ,NEW P>AGRAPHS #A & #B PROVIDE A G5]AL
OV]VIEW (! ROLLOV] "U SUBSEC;N #GC7#A74
,!Y \TL9E ! TYPES ( PROP]TY T QUALIFY &
9DICATE ! ELIGI# RECIPI5TS = S* A
ROLLOV]4
  ,NEW P>AGRAPHS #C & #D EXPLA9 ! DEEM$
PROCE$S & CO/ BASES T RESULT "U SUBSEC;N
#GC7#A7 = BO? DEPRECIA# & NON-DEPRECIA#
PROP]TY4
  ,NEW P>AGRAPHS #E & #F 4CUSS ! ELEC;N
: IS AVAILA# S T ! ROLLOV] "U SUBSEC;N
#GC7#A7 W N AUTOMATIC,Y APPLY4 ,9 A4I;N
!Y 4CUSS :Y A TAXPAY] MI<T USE X & H[ !
ELEC;N IS MADE4
  ,NEW P>AGRAPH #G UPDATES & CL>IFIES !
-;TS 9 =M] P>AGRAPH #H 3C]N+ !       #BF
             ,,IT-#CBE;,R#B         B#AA
M1N+ ( 8SP\SE0 OR 8=M] SP\SE04 ,X AL
4CUSSES ! 9TRODUC;N ( SUBSEC;N #BEB7#D7
9 ,BILL ;,C-#IB1 : EXT5DS1 AF #AIIB1 !
DEF9I;N ( 8SP\SE0 69CLUDE C]TA9 8-MON-
LAW SP\SES40
-------------------------------------#AB
  ,NEW P>AGRAPH #H EXPLA9S ! AM5D;T
6P>AGRAPH #GC7#A77D7 9 ,BILL ;,C-#AH
3C]N+ C\RT-ORD]$ TRANSF]S 6=M] -MON-LAW
SP\SES4 ,= TRANSF]S AF ,JULY #AC1 #AIIJ1
? G5]AL PROVI.N REPLACES ! REQUIRE;T T
S* TRANSF]S 2 MADE "U PRESCRIB$
PROV9CIAL LAWS 6PRESCRIB$ P]SONS1 Z IS
EXPLA9$ 9 NEW P>AGRAPH #I4
  ,NEW P>AGRAPH #AC 4CUSSES ! M1N+ (
8TRANSF]01 :ILE NEW P>AGRAPH #AD EXPLA9S
! DEEM$ TRANSF]S PROVID$ 7= GRT]
C]TA9TY7 0SUBSEC;N #GC7#A.A7 6D1L )
JUDICIAL VE/+ ORD]S T MI<T N O!RWISE
SATISFY ! LEGAL 3CEP;N (A 8TRANSF]40
  ,A NOTE HAS BE5 A4$ AT ! 5D ( NEW
P>AGRAPH #AD 6EXPLA9 ! E6ECT (A PROPOS$
AM5D;T 6SUBSEC;N #GC7#A.A7 9 ! DRAFT
AM5D;TS ISSU$ ON ,AUGU/ #CJ1         #BG
             ,,IT-#CBE;,R#B         A#AB
#AIIC4 ,? AM5D;T W ELIM9ATE ! NE$ =
QUALIFY+ 8TRANSF]S0 6BE MADE "U
PROV9CIAL LAWS T H BE5 PRESCRIB$
0,REGUL,N4
  ,NEW P>AGRAPH #AE EXPLA9S T CAPITAL
PROP]TY TRANSF]R$ 6SATISFY AN OBLIG,N
6MAKE AN EQUALIZ,N PAY;T "U ! ,FAMILY
,LAW ,ACT ( ,ONT>IO C QUALIFY =! ROLLOV]
"U SUBSEC;N #GC7#A74
  ,NEW P>AGRAPH #AF HAS BE5 A4$ 6GIVE AN
9DIC,N (! POSSI# IMPACT (! ATTRIBU;N
RULES & REF]S ! R1D] 6! MA9 BULLET9 ON T
SUBJECT4
  ,NEW P>AGRAPHS #AG 6#BB 4CUSS ! RULES
9 NEW SUBSEC;NS #BDH7#BB7 & 7#BC7 : 7
A4$ 0,BILL ;,C-#AH4 ,^! PROVI.NS D1L )
PROP]TY SUBJECT 6PETI;N ON ! 4SOLU;N (A
MATRIMONIAL PROP]TY REGIME "U ! CIVIL
LAW ( ,QUEBEC4 ,^! RULES CL>IFY ! TAX
TR1T;T (! 9COME & CAPITAL GA9S
ATTRIBUTA# 6! PROP]TY DUR+ ! MATRIMONIAL
REGIME & ^U XS 4SOLU;N4 ,!Y >E AL 9T5D$
6H>MONIZE ! TAX TR1T;T AT ! PROV9CIAL &
F$]AL LEVELS4 ,A NOTE &A NEW         #BH
             ,,IT-#CBE;,R#B         B#AB
P>AGRAPH #BC HAS BE5 A4$ AT ! 5D (!
BULLET9 6EXPLA9 ! E6ECT ( NEW SUBSEC;N
#BDH7#BC.A7 &! *ANGE 6SUBSEC;N
#BDH7#BC71 Z PROPOS$ 9 ! DRAFT AM5D;TS
ISSU$ ON ,AUGU/ #CJ1 #AIIC4 ,^! SET \
NEW RULES = C]TA9 TRANSF]S ( PROP]TY AF
D1? MADE Z A 3SEQU;E ( PROV9CIAL LAWS
RELAT+ 6! %>+ ( PROP]TY Z A RESULT (
M>RIAGE4
  ,9 A4I;N1 WE H *ANG$ "S (! ^W+ &! ORD]
( "S S5T;ES & P>AGRAPHS 6CL>IFY !
BULLET9 & IMPROVE XS COHESIVE;S )\T
*ANG+ ! SUB/.E ( :AT 0 SD 9 ! OLD
BULLET94









                                     #BI