,CANADA ,CU/OMS
            & ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
              ,,IT-#EAA;,R

             ,9 ,"O ,VOLUME
           ,PR9T ,PAGES #A-BA
       ,BRL ,PAGES ;I-;II & #A-ED
    
































                 ,9DEX
    
                               ,BRL PAGE
,APPLIC,N """"""""""""""""""""""""""" #A
,SUMM>Y """"""""""""""""""""""""""""" #B
,4CUS.N & ,9T]PRET,N """""""""""""""" #C
,ATTRIBU;N ( ,9COME F ,TRANSF]R$
  OR ,LOAN$ ,PROP]TY """""""""""""""" #H
,ATTRIBU;N ( ,CAPITAL ,GA9S &
  ,LOSSES """"""""""""""""""""""""""" #I
,APPLIC,N ( ,ATTRIBU;N ,RULES """""" #AJ
,EXCLU.NS """""""""""""""""""""""""" #BA
,SUB/ITUT$ ,PROP]TY """""""""""""""" #BG
,>TIFICIAL ,ATTRIBU;N """""""""""""" #BI
,"PI;N+ AF ,4SOLU;N ( ,MATRIMONIAL
  ,REGIMES 9 ! ,PROV9CE ( ,QUEBEC "" #CJ
,SUBSEC;N #EF7#D.A7 AF #AIIJ """"""" #CE
,SUBSEC;N #EF7#D.A7 2F #AIIA """"""" #DB
,DIVID5D ,TAX ,CR$IT """"""""""""""" #DC
,NON-,RESID5T ,TRANSF]EE """"""""""" #DD
,LIABIL;Y = ,PAY;T ( ,TAX """""""""" #DD



                                      ;I
                 ,9DEX
,EXPLAN,N ( ,*ANGES = ,9T]PRET,N
  ,BULLET9 ,,IT-#EAA;,R ,9T]SP\SAL
  & ,C]TA9 ,O!R ,TRANSF]S & ,LOANS
  ( ,PROP]TY """"""""""""""""""""""" #DG
  ,9TRODUC;N """"""""""""""""""""""" #DG
  ,OV]VIEW """"""""""""""""""""""""" #DG
  ,LEGISLATIVE & ,O!R ,*ANGES """""" #DH
















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

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,,9COME ,,TAX ,,ACT
  ,9T]SP\SAL & ,C]TA9 ,O!R ,TRANSF]S &
  ,LOANS ( ,PROP]TY
,NUMB]3 ,,IT-#EAA;,R
,DATE3 ,FEBRU>Y #BA1 #AIID
,REF];E3 ,SEC;N #GD.B & SUBSEC;N
  #GD.A7#A7 7AL SEC;N #GD.C & SUBSEC;NS
  #EF7#D.A7 TO 7#D.C71 #GD.E7#A7 TO
  7#C71 7#E7 TO 7#AB71 #IF7#A.H71
  #BDH7#E71 7#BB71 7#BC7 & 7#BE7 &
  #BEB7#D77

               ,APPLIC,N
    
  ,? BULLET9 C.ELS & REPLACES ,9T]PRET,N
,BULLET9 ,,IT-#EAA1 DAT$ ,DECEMB] #CJ1
#AIHG1 PRIM>ILY 6DESCRIBE RELEVANT
*ANGES 9 ! ,9COME ,TAX ,ACT S9CE T
BULLET9 0 PUBLI%$4                    #A
                ,SUMM>Y              A#A
    
  ,? BULLET9 4CUSSES A -PREH5SIVE SET (
RULES 9T5D$ 6PREV5T A TAXPAY] &!
TAXPAY]'S SP\SE F SPLITT+ 9COME F
PROP]TY S Z 6REDUCE ! TOTAL AM.T ( TAX
PAYA# ON T 9COME4 ,EXCEPT ": FAIR M>KET
VALUE 3SID],N IS PD 0! SP\SE OR ! "PIES
>E LIV+ SEP>ATE & A"P 0R1SON (A BR1KD[N
( _! M>RIAGE1 9COME E>N$ & CAPITAL GA9S
& LOSSES R1LIZ$ ON PROP]TY TRANSF]R$ OR
LOAN$ F A TAXPAY] 6! TAXPAY]'S SP\SE 7&
ON PROP]TY SUB/ITUT$ = T PROP]TY7 >E
G5],Y DEEM$ 6BE ! 9COME1 GA9S OR LOSSES
(! TAXPAY] & N (! TAXPAY]'S SP\SE4
  ,! BULLET9 AL 4CUSSES AN ANTI-AVOID.E
RULE T APPLIES1 9 C]TA9 CASES1 ": AN
9DIVIDUAL 9CURS 9DEBT$;S 6ACQUIRE
PROP]TY1 6ATTRIBUTE ! 9COME F ! PROP]TY
7& ON PROP]TY SUB/ITUT$ = T PROP]TY7 6!
DEBTOR4 ,! PROVI.N APPLIES ":1 AM;G O!R
?+S1 ! 9DIVIDUAL &! DEBTOR D N D1L AT
>M'S L5G? & "O (! MA9 R1SONS =! 9DEBT$;S
0 6REDUCE OR AVOID TAX4
                                      #B
              ,,IT-#EAA;,R           B#A
  ,:ILE ? BULLET9 D1LS ONLY )! ATTRIBU;N
RULES RELAT+ 6SP\SES1 SUBSEC;NS
#GD.A7#B7 & #GE7#B7 AL APPLY 6ATTRIBUTE
! 9COME F PROP]TY 9 C]TA9 CIRCUM/.ES4 ,=
-;TS ON ^! SUBSEC;NS1 SEE ! CURR5T V].NS
( ,,IT-#EAJ1 ,TRANSF]S & ,LOANS (
,PROP]TY MADE AF ,MAY #BB1 #AIHE 6A
,RELAT$ ,M9OR & ,,IT-#CFI1 ,ATTRIBU;N (
,TRU/ ,9COME 6,SETTLOR RESPECTIVELY4
--------------------------------------#B
,! -;T>Y 2L 4CUSSES ! APPLICA# RULES 9
GRT] DETAIL4

          ,4CUS.N & ,9T]PRET,N
    
#A4 ,9 ? BULLET91 ! T]MS LI/$ 2L H !
  FOLL[+ M1N+S3
  ,TRANSF]R$ OR ,LOAN$ ,PROP]TY3 M1NS
  ALL TRANSF]S OR LOANS ( PROP]TY :E!R
  A3OMPLI%$ DIRECTLY OR 9DIRECTLY1 0M1NS
  (A TRU/ OR 0ANY O!R M1NS4 ,AN 9DIRECT
  TRANSF] O3URS = EXAMPLE1 ": A HUSB& &
  WIFE [N ALL ! %>ES (A CORPOR,N 9 A
  RATIO ( #IJ3AJ &! CORPOR,N ISSUES   #C
              ,,IT-#EAA;,R           A#B
  SU6ICI5T %>ES 6! WIFE = 3SID],N T IS
  LESS ?AN ! FAIR M>KET VALUE (! A4I;NAL
  %>ES 6*ANGE ! RATIO ( [N]%IP 6#EJ3EJ4
  ,A TRANSF] 9CLUDES A SALE :E!R OR N AT
  FAIR M>KET VALUE1 Z WELL Z A GIFT B
  DOES N 9CLUDE A G5U9E LOAN4

  ,SP\SE3 ,SUBSEC;N #BEB7#D71 : APPLIES
  AF #AIIB1 EXP&S ! M1N+ ( SP\SE 69CLUDE
  A P]SON (! OPPOSITE SEX :O AT A
  "PICUL> "T LIVES )! TAXPAY] 9 A 3JUGAL
  REL,N%IP & EI HAS S LIV$ )! TAXPAY]
  "?\T A #AB-MON? P]IOD 5D+ 2F T "T1 OR
  ! TWO 9DIVIDUALS >E ! P>5TS (! SAME *4
  ,": 9DIVIDUALS H LIV$ ) EA* O!R Z
  SP\SES 9 ! PA/1 !Y % 2 DEEM$ 6BE LIV+
  Z SP\SES AT ANY LAT] "T4 ,H["E1 IF !
  SP\SES H LIV$ A"P =A P]IOD ( AT L1/
  #IJ "DS 2C (A BR1KD[N ( _! 3JUGAL
  REL,N%IP1 !N -M5C+ AT ! 2G9N+ ( T #IJ
  "D P]IOD !Y W NO L;G] 2 DEEM$ 6BE LIV+
  Z SP\SES4 ,A P]SON C 2COME !
  9DIVIDUAL'S SP\SE EI Z A RESULT ( _!
  M>RIAGE OR Z A 3SEQU;E (! OP],N (   #D
              ,,IT-#EAA;,R           B#B
  SUBSEC;N #BEB7#D74 ,PRIOR 6#AIIC1 A
  "PY 6A -MON-LAW REL,N%IP 0 N REG>D$ Z
  A SP\SE 9 RESPECT ( T REL,N%IP4 ,!
  RULES 9 SUBSEC;NS #GD.A7#A7 &
  #GD.B7#A7 APPLY 6A P]SON :O IS AN
  9DIVIDUAL'S SP\SE OR 6A P]SON :O 2CAME
  ! 9DIVIDUAL'S SP\SE AF ! LOAN OR
  TRANSF] ( PROP]TY 0 MADE 6T P]SON4 ,!
  RULES 9 SEC;NS #GD.C & #GD.D APPLY 6A
  DESIGNAT$ P]SON : 9CLUDES A P]SON :O
  AT ANY "T IS AN 9DIVIDUAL'S SP\SE4

,NOTE3
  ,ON ,AUGU/ #CJ1 #AIIC ! ,M9I/] ( ,F9.E
  ISSU$ ,AM5D;TS 6! ,9COME ,TAX ,ACT &
  ,RELAT$ ,/ATUTES4 ,EXPLANATORY NOTES 7
  ISSU$ : ELABORATE ON ! PROPOS$ *ANGES4
  ,! ,EXPLANATORY NOTES DESCRIBE T
  SUBSEC;N #BEB7#D7 W 2 AM5D$ 65SURE T
  ": ! TWO 9DIVIDUALS >E 3SID]$ 6BE
  SP\SES 2C !Y >E ! P>5TS (! SAME *1 !Y
  W 2 S 3SID]$ ONLY IF !Y >E ! NATURAL
  OR
                                      #E
              ,,IT-#EAA;,R            #C
  ADOPTIVE P>5TS ( T *4 ,IF 5ACT$ Z
  PROPOS$ ! AM5D;T W APPLY AF #AIIB4

  ,M>RIAGE3 ,AF #AIIB1 0VIRTUE (
  SUBSEC;N #BEB7#D71 A REF];E 6M>RIAGE
  9CLUDES A 3JUGAL REL,N%IP 2T TWO
  9DIVIDUALS T WD MAKE !M SP\SES ( EA*
  O!R4

  ,B5EFICI,Y ,9T]E/$3 ,AN 9DIVIDUAL IS
  8B5EFICI,Y 9T]E/$0 9 A TRU/ IF !
  9DIVIDUAL HAS ANY "R 7:E!R IMM OR
  FUTURE1 :E!R ABSOLUTE OR 3T+5T OR :E!R
  3DI;NAL ON OR SUBJECT 6! EX]CISE (A
  4CRE;N>Y P[] 0ANY P]SON OR P]SONS7
  6RCV ANY (! 9COME OR CAPITAL (! TRU/1
  EI DIRECTLY F ! TRU/ OR 9DIRECTLY "?
  "O OR M O!R TRU/S4 ,SEE #AE 2L =
  EXAMPLES ( SITU,NS ": AN 9DIVIDUAL IS
  B5EFICI,Y 9T]E/$ 9 A TRU/4

  ,SUB/ITUT$ ,PROP]TY3 ,P>AGRAPH
  #BDH7#E77A7 PROVIDES T 9 ! CIRCUM/.ES
  4CUSS$ 9 ? BULLET91 ": A TAXPAY]    #F
              ,,IT-#EAA;,R           A#C
  HAS 4POS$ ( OR EX*ANG$ A "PICUL>
  PROP]TY & ACQUIR$ O!R PROP]TY 9
  SUB/ITU;N = X & SUBSEQU5TLY1 0"O OR M
  FUR!R TRANSAC;NS1 HAS E6ECT$ "O OR M
  FUR!R SUB/ITU;NS1 ! PROP]TY ACQUIR$
  0ANY S* TRANSAC;N IS DEEM$ 6H BE5
  SUB/ITUT$ =! "PICUL> PROP]TY4 ,= FUR!R
  -;TS ON ? TOPIC SEE #BG 2L4

  ,DESIGNAT$ ,P]SON3 PURSUANT 6SUBSEC;N
  #GD.E7#E71 A 8DESIGNAT$ P]SON0 9
  RESPECT ( AN 9DIVIDUAL M1NS A P]SON :O
  IS
  7A7 ! 9DIVIDUAL'S SP\SE OR
  7B7 A RELAT$ M9OR4
  
  ,RELAT$ ,M9OR3 A P]SON :O IS "U #AH
  YE>S ( AGE1 & :O
  7A7 DOES N D1L )! 9DIVIDUAL AT >M'S
    L5G? 7E4G4 A P>5T &A * OR O!R
    DESC5DANT :E!R 0BLOOD REL,N%IP OR
    ADOP;N1 D N D1L AT >M'S L5G?--SEE !
    CURR5T V].N ( ,,IT-#DAI1 ,M1N+ (
    ,>M'S ,L5G?71 OR                  #G
              ,,IT-#EAA;,R           B#C
  7B7 IS A NIECE OR NEPHEW (! 9DIVIDUAL4
  
  ,PRESCRIB$ ,RATE3 M1NS ! 9T]E/ RATE
  PRESCRIB$ 0SEC;N #DCJA (! ,REGUL,NS4

    ,ATTRIBU;N ( ,9COME F ,TRANSF]R$
           OR ,LOAN$ ,PROP]TY
    
#B4 ,SUBSEC;NS #GD.A7#A7 & #GD.C7#A7
  PROVIDE T ": AN 9DIVIDUAL HAS
  TRANSF]R$ OR LOAN$ PROP]TY 79CLUD+
  M"OY7 6! 9DIVIDUAL'S SP\SE OR 6A TRU/
  9 : T SP\SE IS B5EFICI,Y 9T]E/$ AT ANY
  "T ANY 9COME OR LOSS F ! PROP]TY OR
  PROP]TY SUB/ITUT$ = X IS DEEM$ 6BE !
  9DIVIDUAL'S 9COME OR LOSS =A TAX,N
  YE>4 ,SEE ! 4CUS.N "U ! 8,EXCLU.NS0
  CAP;N />T+ AT #AH 2L = EXCEP;NS 6!
  RULES4 ,FUR!R1 AL? SUBSEC;NS #GD.A7#A7
  & #GD.C7#A7 D N APPLY TO
--------------------------------------#D
  -MON-LAW REL,N%IPS 2F #AIIC1 SUBSEC;N
  #EF7#D.A7 APPLIES 6ATTRIBUTE 9COME ON
  9DEBT$;S ( "O 9DIVIDUAL 6ANO!R      #H
              ,,IT-#EAA;,R           A#D
  ":1 AM;G O!R ?+S1 ! 9DIVIDUALS D N D1L
  AT >M'S L5G?4 ,O!R ?AN 9DIVIDUALS
  3NECT$ 0BLOOD REL,N%IP1 M>RIAGE OR
  ADOP;N1 X IS A "Q ( FACT :E!R ! "PIES
  6A REL,N%IP D1L ) EA* O!R AT >M'S L5G?
  AT A "PICUL> "T4 ,SEE #CJ 6#CD 2L =A
  4CUS.N ( SUBSEC;NS #EF7#D.A7
  6#EF7#D.C74

     ,ATTRIBU;N ( ,CAPITAL ,GA9S &
                ,LOSSES
    
#C4 ,PURSUANT 6P>AGRAPHS #GD.B7#A77A7 &
  7B71 ": AN 9DIVIDUAL HAS TRANSF]R$ OR
  LOAN$ PROP]TY 6! 9DIVIDUAL'S SP\SE ANY
  TAXA# CAPITAL GA9S OR ALL[A# CAPITAL
  LOSSES >IS+ F ! 4POSI;NS (! PROP]TY OR
  PROP]TY SUB/ITUT$ = X 7O!R ?AN LI/$
  P]SONAL PROP]TY7 >E DEEM$ 6BE TAXA#
  CAPITAL GA9S OR ALL[A# CAPITAL LOSSES
  (! 9DIVIDUAL4 ,AL1 PURSUANT 6P>AGRAPHS
  #GD.B7#A77C7 & 7D71 ANY GA9S OR LOSSES
  >IS+ F ! 4POSI;N ( LOAN$ OR TRANSF]R$
  LI/$ P]SONAL PROP]TY OR PROP]TY     #I
              ,,IT-#EAA;,R           B#D
  SUB/ITUT$ = X >E DEEM$ 6BE GA9S OR
  LOSSES (! 9DIVIDUAL F ! 4POSI;N (!
  LI/$ P]SONAL PROP]TY4 ,SEE ! 4CUS.N "U
  ! 8,EXCLU.NS0 CAP;N />T+ AT #AH 2L =
  EXCEP;NS 6! RULES4
#D4 ,ANY TAXA# CAPITAL GA9S & ALL[A#
  CAPITAL LOSSES ON 4POSI;NS ( PROP]TY
  ATTRIBUT$ 6A TRANSF]OR 0VIRTUE (
  SUBSEC;N #GD.B7#A7 MAY 2 9CLUD$ 9
  -PUT+ ! TRANSF]OR'S LIFE"T CAPITAL
  GA9S DEDUC;N "U SEC;N #AAJ.F4

     ,APPLIC,N ( ,ATTRIBU;N ,RULES
    
#E4 ,X IS NEC 64T+UI% 2T 9COME OR LOSS F
  PROP]TY & 9COME OR LOSS F A BUSI;S4
  ,NEI SUBSEC;N #EF7#D.A7 NOR #GD.A7#A7
  APPLIES 6ATTRIBUTE BUSI;S 9COME OR
  LOSSES EV5 IF ! BUSI;S OP]ATES ) "S OR
  ALL (! PROP]TY OBTA9$ ORIG9,Y F !
  TRANSF]OR4 ,AL? ! 9COME F A "PN]%IP IS
  USU,Y 9COME F A BUSI;S1 SUBSEC;N
  #IF7#A.H71 : G5],Y APPLIES 6#AIHI &
  SUBSEQU5T TAX,N YE>S1 PROVIDES     #AJ
              ,,IT-#EAA;,R           C#D
  AN EXCEP;N =! PURPOSES ( SEC;NS #GD.A
  & #GD.C & SUBSEC;N #EF7#D.A74 ,": A
  TAXPAY] IS A SPECIFI$ MEMB] (A
  "PN]%IP1 T P]SON'S %>E (! 9COME OR
  LOSS (! "PN]%IP =A FISCAL P]IOD1 9 : !
  P]SON 0 A MEMB] (! "PN]%IP1 IS DEEM$
  0SUBSEC;N #IF7#A.H7 6BE 9COME OR LOSS
  F PROP]TY4 8,SPECIFI$ MEMB]0 IS DEF9$
  9 SUBSEC;N #BDH7#A7 & IS ESS5TI,Y A
  MEMB] (A "PN]%IP :O IS A LIMIT$ "PN]
  7Z DEF9$ 9 SUBSEC;N #IF7#B.D771 AN
  9ACTIVE "PN] OR A P]SON :O IS N 5GAG$
  9 A BUSI;S SIMIL> 6T
--------------------------------------#E
  C>RI$ ON 0! "PN]%IP EXCEPT Z A MEMB]
  (! "PN]%IP4
#F4 ,9COME OR LOSS DERIV$ F ! 9VE/;T OR
  O!R USE (! 9COME F TRANSF]R$ PROP]TY
  IS N ATTRIBUT$ 6! TRANSF]OR & ?US =
  9COME TAX PURPOSES IS 9COME OR LOSS (!
  TRANSF]EE4 ,= EXAMPLE1 9T]E/ ON ANY
  9T]E/ ALL[$ 6A3UMULATE IS N ATTRIBUT$
  6! TRANSF]OR & IS 9COME (! TRANSF]EE4
                                     #AA
              ,,IT-#EAA;,R           A#E
#G4 ,PURSUANT 6SUBSEC;N #GD.A7#C71 !
  ATTRIBU;N RULES 9 SUBSEC;N #GD.A7#A7
  APPLY 6TRANSF]R$ OR LOAN$ PROP]TY : IS
  US$ EI 6REPAY BORR[$ M"OY T 0 US$
  6ACQUIRE PROP]TY OR 6REDUCE AN AM.T
  PAYA# = T PROP]TY4 ,= EXAMPLE1 IF AN
  >M'S L5G? L5D] L5DS A TAXPAY] ! M"OY
  6ACQUIRE 9COME PRODUC+ PROP]TY & LAT]1
  ! TAXPAY]'S SP\SE MAKES A GIFT 6!
  TAXPAY] EQUAL 6! TAXPAY]'S 9DEBT$;S ON
  ! PROP]TY &! GIFT IS APPLI$ 6RETIRE !
  9DEBT$;S1 ! 9COME F ! PROP]TY W
  ATTRIBUTE 6! TAXPAY]'S SP\SE4
#H4 ,SUBSEC;N #GD.E7#F7 APPLIES 9 TWO
  SITU,NS ": AN 9DIVIDUAL HAS TRANSF]R$
  OR LOAN$ PROP]TY 6A ?IRD "PY4 ,!
  PROVI.N APPLIES ":
  7A7 ! PROP]TY OR SUB/ITUT$ PROP]TY IS1
    OR
  7B7 ! TRANSF] OR LOAN O3URS ON 3DI;N T
    ANY PROP]TY BE1
  TRANSF]R$ OR LOAN$ 0A ?IRD "PY 6OR =!
  B5EFIT (! 9DIVIDUAL'S SP\SE4 ,": !
  SUBSEC;N APPLIES1 PURSUANT         #AB
              ,,IT-#EAA;,R           B#E
  6P>AGRAPH #GD.E7#F77C71 ! PROP]TY
  TRANSF]R$ OR LOAN$ 0! ?IRD "PY IS
  DEEM$ 6H BE5 TRANSF]R$ OR LOAN$ 0!
  9DIVIDUAL 6OR =! B5EFIT (! SP\SE &1
  PURSUANT 6P>AGRAPH #GD.E7#F77D71 ANY
  3SID],N RCVD 0! ?IRD "PY IS DEEM$ 6H
  BE5 RCVD 0! 9DIVIDUAL4
#I4 ,SUBSEC;N #GD.E7#G7 APPLIES ": AN
  9DIVIDUAL M/ 5SURE REPAY;T (A LOAN OR
  ANY 9T]E/ ON A LOAN T IS MADE 0A ?IRD
  "PY 6OR =! B5EFIT (! 9DIVIDUAL'S
  SP\SE4 ,": ! PROVI.N APPLIES1 !
  PROP]TY LOAN$ 0! ?IRD "PY IS DEEM$ 6H
  BE5 LOAN$ 0! 9DIVIDUAL 6OR =! B5EFIT
  (! SP\SE1 & 9T]E/ PD ON ! LOAN 0!
  9DIVIDUAL IS IGNOR$ =! PURPOSES (
  P>AGRAPHS #GD.E7#B77B7 & 7C7 7SEE #BB
  2L74
--------------------------------------#F
#AJ4 ,SUBSEC;N #GD.E7#I7 PROVIDES T ":
  AN 9DIVIDUAL HAS TRANSF]R$ OR LOAN$
  PROP]TY 6A TRU/ 9 : ! 9DIVIDUAL'S

                                     #AC
              ,,IT-#EAA;,R           A#F
  SP\SE IS B5EFICI,Y 9T]E/$ ! TRANSF] OR
  LOAN IS DEEM$ 6BE =! B5EFIT (! SP\SE4
#AA4 ,": AN 9DIVIDUAL HAS TRANSF]R$ OR
  LOAN$ PROP]TY 6A TRU/ 9 : A DESIGNAT$
  P]SON :O IS ! 9DIVIDUAL'S SP\SE IS
  B5EFICI,Y 9T]E/$ AT ANY "T1 P>AGRAPH
  #GD.C7#A77A7 APPLIES 6DET]M9E AN AM.T
  T IS DEEM$ 6BE ! 9COME (! SP\SE F !
  PROP]TY4 ,? 9COME IS 9CLUD$ 9 !
  9DIVIDUAL'S 9COME PURSUANT 6SUBSEC;N
  #GD.A7#A74
#AB4 ,PURSUANT 6P>AGRAPH #GD.C7#A77A7 !
  9COME (! SP\SE F ! PROP]TY TRANSF]R$
  OR LOAN$ 6! TRU/ IS ! LESS] (
  7A7 ! SP\SE'S 9COME "U P>AGRAPH
    #AB7#A77M7 F ! TRU/1 &
  7B7 ! PROPOR;N (! 9COME E>N$ 0! TRU/ F
    ! TRANSF]R$ OR LOAN$ PROP]TY T
    7;I7 ! SP\SE'S 9COME "U P>AGRAPH
      #AB7#A77M7 F ! TRU/
    IS (
    7;II7 ! A7REGATE 9COME F ! TRU/ (
      ALL P]SONS EA* ( :OM IS "?\T ! YE>
                                     #AD
              ,,IT-#EAA;,R           B#F
      A RELAT$ M9OR OR ! 9DIVIDUAL'S
      SP\SE4
  ,9 7B7 ! 89COME E>N$ 0! TRU/0 EXCLUDES
  CAPITAL GA9S & IS CALCULAT$ 2F ANY
  DEDUC;NS "U SUBSEC;N #AJD7#F7 OR
  7#AB74
#AC4 ,P>AGRAPH #GD.C7#A77B7 APPLIES ":
  AN 9DIVIDUAL HAS TRANSF]R$ OR LOAN$
  PROP]TY 6A TRU/ 9 : ! 9DIVIDUAL'S
  SP\SE IS B5EFICI,Y 9T]E/$ AT ANY "T
  6DET]M9E ! TAXA# CAPITAL GA9 (! SP\SE
  T IS ATTRIBUT$ 6! 9DIVIDUAL PURSUANT
  6SUBSEC;N #GD.B7#A7 7SEE #C ABV74 ,!
  ATTRIBUT$ AM.T IS ! LESS] (
  7A7 ! AM.T T 0 DESIGNAT$ "U SUBSEC;N
    #AJD7#BA7 =! SP\SE 9 ! TRU/'S 9COME
    TAX RETURN =! YE>1 &
  7B7 ! NET TAXA# CAPITAL GA9S =! YE> F
    ! 4POSI;N 0! TRU/ ( PROP]TY T HAS
    BE5 TRANSF]R$ OR LOAN$ 6! TRU/ 0!
    9DIVIDUAL4
  

                                     #AE
              ,,IT-#EAA;,R           C#F
#AD4 ,AN EXAMPLE (! OP],N ( SUBSEC;N
  #GD.C7#A7 FOLL[S3
  ,AN 9DIVIDUAL TRANSF]S1 = NO 3SID],N1
  BONDS : PAY 9T]E/ ( 4#A1EJJ P] ANNUM
  6A FAMILY TRU/ ! B5EFICI>IES ( : >E !
  9DIVIDUAL'S SP\SE & TWO *N1 "O ( :OM
  IS #AF YE>S ( AGE &! O!R #BJ YE>S (
  AGE4 ,! TRU/'S 9COME 2F ANY DEDUC;NS
  "U SUBSEC;N
--------------------------------------#G
  #AJD7#F7 OR 7#AB7 IS 4#B1GJJ1 9CLUD+ A
  TAXA# CAPITAL GA9 ( 4#CJJ1 ( : 4#AHJ 0
  R1LIZ$ ON ! 4POSI;N (! BONDS TRANSF]R$
  F ! 9DIVIDUAL4 ,EA* B5EFICI>Y HAS AN
  EQUAL 5TITLE;T 6! TRU/ 9COME1 ALL ( :
  IS PAYA# 9 ! YE>4 ,! TRU/ DESIGNAT$
  4#AJJ ( TAXA# CAPITAL GA9S = EA*
  B5EFICI>Y4

  ,! SP\SE &! #AF YE> OLD * >E DESIGNAT$
  P]SONS4

  ,! 9COME F ! TRANSF]R$ BONDS = EA*
  DESIGNAT$ P]SON IS ! LESS] (3      #AF
              ,,IT-#EAA;,R           A#G
  --! 9COME (! DESIGNAT$ P]SON F ! TRU/
    EQUALS 4#HJJ 7I4E41 "O-?IRD (
    74#B1GJJ M9US 4#CJJ771 &
  --;,A MULTIPLI$ 0;,B DIVID$ 0;,C
  
    ":
  
    ;,A IS ! 9COME (! TRU/ F ! TRANSF]R$
      PROP]TY 74#A1EJJ71
    ;,B IS ! 9COME (! DESIGNAT$ P]SON F
      ! TRU/ 74#HJJ71 &
    ;,C IS ! 9COME ( ALL ! DESIGNAT$
      P]SONS F ! TRU/ 74#A1FJJ74
    4#A1EJJ MULTIPLI$ 04#HJJ DIVID$
      04#A1FJJ EQUALS 4#GEJ
  ,9COME ( 4#GEJ IS ATTRIBUT$ 6!
  9DIVIDUAL F ! SP\SE4

  ,! TAXA# CAPITAL GA9 F ! TRANSF]R$
  PROP]TY =! SP\SE IS ! LESS] (3
  --! AM.T DESIGNAT$ "U SUBSEC;N
    #AJD7#BA7 =! SP\SE 74#AJJ71 &
  
                                     #AG
              ,,IT-#EAA;,R           B#G
  --! NET TAXA# CAPITAL GA9 R1LIZ$ ON !
    4POSI;N (! TRANSF]R$ BONDS 74#AHJ74
  ,A TAXA# CAPITAL GA9 ( 4#AJJ IS
  ATTRIBUT$ 6! 9DIVIDUAL F ! SP\SE4
#AE4 ,! FOLL[+ >E EXAMPLES ( SITU,NS ":
  AN 9DIVIDUAL IS B5EFICI,Y 9T]E/$ 9 A
  TRU/3
  7A7 TRU/ 9COME IS PAYA# 6! 9DIVIDUAL2
  7B7 9COME IS HELD 9 TRU/ & W 2 PD ^U !
    9DIVIDUAL'S ATTA9;T (A C]TA9 AGE2
  7C7 ! 9DIVIDUAL IS "O = :OM A PREF]R$
    B5EFICI>Y ELEC;N MAY 2 MADE2
  7D7 ! 9DIVIDUAL IS "O (A CLASS :O HAS
    A REMA9D] 9T]E/ "U ! TRU/4
  ,! 9DIVIDUAL IS B5EFICI,Y 9T]E/$ 9 !
  TRU/ 9 7B7 EV5 IF ! 9DIVIDUAL'S "R
  6RCV 9COME C1SES IF ! 9DIVIDUAL %D DIE
  2F ATTA9+ ! SPECIFI$ AGE4 ,SIMIL>LY1 !
  9DIVIDUAL IS B5EFICI,Y 9T]E/$ 9 ! TRU/
  9 7C7 EV5 IF ! TRU/EES H FULL 4CRE;N>Y
  P[]S


                                     #AH
              ,,IT-#EAA;,R            #H
  3C]N+ ! 4TRIBU;N (! CAPITAL OR 9COME
  (! TRU/ S T ! 9DIVIDUAL MAY 9 FACT RCV
  NO?+ F ! TRU/4
#AF4 ,IF DEPRECIA# PROP]TY (A PRESCRIB$
  CLASS IS TRANSF]R$ 6A SP\SE & IMMLY 2F
  T "T ! SP\SE _H NO PROP]TY ( T CLASS1
  ! 9COME OR LOSS F ! PROP]TY ATTRIBUT$
  6! TRANSF]OR M/ REFLECT ANY AM.T (
  CAPITAL CO/ ALL[.E1 T]M9AL LOSS OR
  RECAPTURE ( CAPITAL CO/ ALL[.E =!
  CLASS : WD O!RWISE 2 TAK5 96A3.T 9
  -PUT+ ! 9COME (! SP\SE4

  ,IF DEPRECIA# PROP]TY (A PRESCRIB$
  CLASS IS TRANSF]R$ 6A SP\SE & IMMLY 2F
  T "T ! SP\SE _H O!R PROP]TY ( T CLASS1
  7A7 A R1SONA# POR;N (! CAPITAL CO/
    ALL[.E CLAIM$ 0! SP\SE =! CLASS 7:
    MAY N EXCE$ ! MAXIMUM CAPITAL CO/
    ALL[.E T WD 2 DEDUCTI# =! TRANSF]R$
    PROP]TY IF ! PROP]TY 7 9 A SEP>ATE
    CLASS7 MAY 2 DEDUCT$ 9 -PUT+ ! 9COME
    OR LOSS F ! PROP]TY ATTRIBUTA# 6!
    TRANSF]OR1 &                     #AI
              ,,IT-#EAA;,R           A#H
  7B7 AL 9 T -PUT,N1 A T]M9AL LOSS OR
    RECAPTURE ( CAPITAL CO/ ALL[.E T WD
    O!RWISE 2 9CLUD$ 9 -PUT+ ! 9COME (!
    SP\SE =! CLASS ( DEPRECIA# PROP]TY
    M/ 2 TAK5 96A3.T 6! EXT5T T S* AM.T
    C R1SONABLY 2 3SID]$ 6RELATE 6!
    TRANSF]R$ PROP]TY4
  ,AF ! YE> ( 4POSI;N (! TRANSF]R$
  PROP]TY & PROVID$ A SUB/ITUT$
  DEPRECIA# PROP]TY IS N ACQUIR$ 0!
  SP\SE1 "! IS NO ATTRIBU;N ( 9COME OR
  LOSS 9 RESPECT ( ANY CAPITAL CO/
  ALL[.E1 T]M9AL LOSS OR RECAPTURE (
  CAPITAL CO/ ALL[.E T >ISES =! CLASS4
#AG4 ,": 9COME >ISES F DEPRECIA# PROP]TY
  TRANSF]R$ 6A TRU/ ! AM.T ATTRIBUT$ 6!
  TRANSF]OR IS DET]M9$ Z DESCRIB$ 9 #AB
  ABV1 EV5 ?\< ! TRU/'S 9COME CALCUL,N
  9CLUDES AM.TS = CAPITAL CO/ ALL[.E1
  T]M9AL LOSS OR RECAPTURE ( CAPITAL CO/
  ALL[.E =! CLASS4


                                     #BJ
               ,EXCLU.NS             B#H
    
#AH4 ,SUBSEC;NS #GD.A7#A7 & #GD.B7#A7 D
  N APPLY 6ATTRIBUTE ANY 9COME OR LOSS
  OR ANY TAXA# CAPITAL GA9S OR ALL[A#
  CAPITAL LOSSES 6! TRANSF]OR T RELATES
  6A P]IOD
  7A7 FOLL[+ ! D1? (! TRANSF]OR OR
    TRANSF]EE1
--------------------------------------#I
  7B7 "?\T : ! TRANSF]OR IS N RESID5T 9
    ,CANADA1 OR
  7C7 AF ! TRANSF]EE C1SES 6BE !
    TRANSF]OR'S SP\SE1
  7E4G41 :5 A DIVORCE 2COMES F9AL74
#AI4 ,0VIRTUE ( P>AGRAPH #GD.E7#C77A71 !
  ATTRIBU;N RULES = 9COME "U SUBSEC;N
  #GD.A7#A7 D N APPLY =! P]IOD :5 SP\SES
  >E LIV+ SEP>ATE & A"P 0R1SON (A
  BR1KD[N ( _! M>RIAGE4
#BJ4 ,0VIRTUE ( P>AGRAPH #GD.E7#C77B71 !
  ATTRIBU;N RULES = CAPITAL GA9S "U
  SUBSEC;N #GD.B7#A7 D N APPLY 64POSI;NS
  ( PROP]TY O3URR+ AT ANY "T :ILE !
  SP\SES >E LIV+ SEP>ATE & A"P 2C    #BA
              ,,IT-#EAA;,R           A#I
  (A BR1KD[N ( _! M>RIAGE IF ! SP\SES
  JO9TLY ELECT N 6H SEC;N #GD.B APPLY4
  ,SEC;N #GD.B W C1SE 6APPLY =! YE> !
  JO9T ELEC;N IS FIL$ & "!AF4 ,! ELEC;N1
  : MAY 2 FIL$ = ANY TAX,N YE> 5D+ AF !
  SEP>,N1 %D 2 FIL$ )! TRANSF]OR'S 9COME
  TAX RETURN4
#BA4 ,PURSUANT 6SUBSEC;N #GD.E7#A71
  9COME OR LOSS F TRANSF]R$ PROP]TY OR
  ANY TAXA# CAPITAL GA9S OR ALL[A#
  CAPITAL LOSSES ON ! 4POSI;N (!
  TRANSF]R$ PROP]TY DOES N ATTRIBUTE 6!
  TRANSF]OR 9 A "PICUL> YE> ":
  7A7 ! SALE OR O!R TRANSF] IS MADE 6!
    TRANSF]OR'S SP\SE = 3SID],N EQUAL
    6FAIR M>KET VALUE (! TRANSF]R$
    PROP]TY1
  7B7 ! SALE PRICE OR O!R 3SID],N =!
    TRANSF] IS
    7;I7 FULLY PD 0! TRANSF]EE 9 CA% OR
      K9D 7& N F PROP]TY FURNI%$ 0!
      TRANSF]OR71 OR
    
                                     #BB
              ,,IT-#EAA;,R           B#I
    7;II7 SATISFI$ 9 :OLE OR 9 "P
      09DEBT$;S ON : 9T]E/ IS *>G$ AT A
      RATE N LESS ?AN ! LESS] (
      7,A7 ! PRESCRIB$ RATE &
      7,B7 ! RATE T WD 2 AGRE$ ^U 2T
        >M'S L5G? "PIES "U SIMIL>
        CIRCUM/.ES
      AT ! "T ! 9DEBT$;S IS 9CURR$1 IF
      ALL S* 9T]E/ IS PD NO LAT] ?AN #CJ
      "DS AF ! 5D ( EA* CAL5D> YE> 9 : X
      2COMES PAYA#1 &
  7C7 ! TRANSF]OR ELECTS N 6H ! PROVI.NS
    ( SUBSEC;N #GC7#A7 APPLY 7I4E41 ANY
    GA9 OR LOSS IS R1LIZ$ AT ! "T (
    TRANSF]74
-------------------------------------#AJ
  ,IF ! 9T]E/ 9 7B77;II7 IS N PD )9 !
  DESCRIB$ "T !N ! 9DEBT$;S W N MEET !
  REQUIRE;TS = EXEMP;N F ! ATTRIBU;N
  RULES "U SUBSEC;N #GD.E7#A7 9 !
  "PICUL> YE> OR 9 ANY LAT] YE>4

  ,SEE ! CURR5T V].N ( ,,IT-#CBE1
  ,PROP]TY ,TRANSF]S ,AF ,SEP>,N1    #BC
              ,,IT-#EAA;,R          A#AJ
  ,DIVORCE & ,ANNUL;T1 = -;TS ON
  SUBSEC;N #GC7#A74
#BB4 ,PURSUANT 6SUBSEC;N #GD.E7#B71
  SUBSEC;NS #GD.A7#A7 & #GD.B7#A7 D N
  APPLY 9 A "PICUL> YE> 6LOANS ": 9T]E/
  IS *>G$ ON ! 9DEBT$;S AT A RATE N LESS
  ?AN ! LESS] (
  7A7 ! PRESCRIB$ RATE &
  7B7 ! RATE T WD 2 AGRE$ ^U 2T >M'S
    L5G? "PIES "U SIMIL> CIRCUM/.ES
  AT ! "T ! 9DEBT$;S IS 9CURR$1 IF ALL
  S* 9T]E/ IS PD NO LAT] ?AN #CJ "DS AF
  ! 5D ( EA* CAL5D> YE> 9 : X 2COMES
  PAYA#4

  ,IF ! 9T]E/ IS N PD )9 ! DESCRIB$ "T
  !N ! 9DEBT$;S W N MEET ! REQUIRE;TS =
  EXEMP;N F ! ATTRIBU;N RULES "U
  SUBSEC;N #GD.E7#B7 9 ! "PICUL> YE> OR
  9 ANY LAT] YE>4

  ,IF PROP]TY HAS BE5 ACQUIR$ )A LOAN T
  SATISFI$ ! REQUIRE;TS ( SUBSEC;N
  #GD.E7#B7 &! LOAN IS REPD1 NEI     #BD
              ,,IT-#EAA;,R          B#AJ
  SUBSEC;N #GD.A7#A7 NOR #GD.B7#A7 W
  APPLY AF ! REPAY;T 69COME E>N$ ON !
  PROP]TY OR CAPITAL GA9S >IS+ ON !
  4POSI;N (! PROP]TY4

  ,:5 A LOAN T SATISFI$ ! REQUIRE;TS (
  SUBSEC;N #GD.E7#B7 IS =GIV5 ! EXEMP;N
  9 SUBSEC;N #GD.E7#B7 C1SES 6APPLY &
  SEC;N #HJ 2COMES APPLICA#4
#BC4 ,P>AGRAPH #GD.E7#AB77A7 PROVIDES T
  NEI SUBSEC;N #GD.A7#A7 NOR #GD.B7#A7
  IS APPLICA# 6ATTRIBUTE AM.TS >IS+ F
  PREMIUMS PD "U A REGI/]$ RETIRE;T
  SAV+S PLAN ": ! TRANSF]OR'S SP\SE IS !
  ANNUITANT 6! EXT5T ! PREMIUM IS
  DEDUCTI# "U SUBSEC;N #ADF7#E.A7 OR
  P>AGRAPH #FJ7J4#B74
#BD4 ,P>AGRAPH #GD.E7#AB77A4#A7 PROVIDES
  T NEI SUBSEC;N #GD.A7#A7 NOR #GD.B7#A7
  IS APPLICA# 6ATTRIBUTE AM.TS 3TRIBUT$1
  Z P]MITT$ 0P>AGRAPH #FJ7;V71 6A
  PRESCRIB$ PROV9CIAL P5.N PLAN "U : !
  9DIVIDUAL'S SP\SE IS ! ANNUITANT OR !
  [N] (! A3.T "U ! PLAN1 PROVID$ !   #BE
              ,,IT-#EAA;,R          C#AJ
  3TRIBU;NS 6! PLAN D N EXCE$ ! AM.T
  PROVID$ = 0P>AGRAPH #GD.E7#AB77A4#A74
  ,"P ,,LXXVIII (! ,REGUL,NS ID5TIFIES !
  PRESCRIB$ PROV9CIAL P5.N PLANS4
-------------------------------------#AA
#BE4 ,P>AGRAPH #GD.E7#AB77B7 PROVIDES T
  ! ATTRIBU;N RULES DESCRIB$ 9 SUBSEC;N
  #GD.A7#A7 & SUBSEC;N #GD.B7#A7 D N
  APPLY 6AN 9T]SP\SAL TRANSF] ( PROP]TY
  :5 TRANSF]R$ Z OR ON A3.T ( AN AM.T PD
  T IS
  7A7 DEDUCTI# 9 DET]M9+ ! PAY]'S 9COME
    =! YE>1 &
  7B7 REQUIR$ 6BE 9CLUD$ 9 ! PAYEE'S
    9COME4
  ,= EXAMPLE1 ! PAY;T ( M"OY 6! PAY]'S
  SP\SE Z REMUN],N = S]VICES PROVID$ 9 A
  BUSI;S 3DUCT$ 0! PAY] IS A TRANSF] (
  PROP]TY1 B1 ": 3DI;NS 7A7 & 7B7 >E
  SATISFI$1 N A TRANSF] 6: ATTRIBU;N
  APPLIES4 ,9 S* CASES1 ANY 9COME OR
  LOSS OR TAXA# CAPITAL GA9 OR ALL[A#
  CAPITAL LOSS >IS+ F ANY SUBSEQU5T
                                     #BF
              ,,IT-#EAA;,R          A#AA
  9VE/;T (! REMUN],N 0! SP\SE IS N
  ATTRIBUTA# 6! PAY]4
#BF4 ,SUBSEC;N #GD.A7#A7 PROVIDES AN
  EXEMP;N = ANY POR;N (A RETIRE;T P5.N T
  IS ASSIGN$ F "O SP\SE 6ANO!R PURSUANT
  6SEC;N #FD.A (! ,CANADA ,P5.N ,PLAN OR
  PURSUANT 6A -P>A# PROVI.N (! ,QUEBEC
  ,P5.N ,PLAN OR A PRESCRIB$ PROV9CIAL
  P5.N PLAN4

          ,SUB/ITUT$ ,PROP]TY
    
#BG4 ,": A TAXPAY] TRANSF]S CAPITAL
  PROP]TY 6! TAXPAY]'S SP\SE &! SP\SE
  SUBSEQU5TLY 4POSES ( T PROP]TY &
  ACQUIRES NEW PROP]TY 9 EX*ANGE = X1
  9COME OR LOSSES >IS+ F ! SP\SE'S
  [N]%IP (! NEW PROP]TY & ANY TAXA#
  CAPITAL GA9S OR ALL[A# CAPITAL LOSSES
  ON XS 4POSI;N >E ATTRIBUT$ 6! TAXPAY]4
  ,S9CE ! =EGO+ REPRES5TS A *ANGE 9 !
  ,DE"P;T'S POSI;N Z SET \ 9
  ,,IT-#BEH;,R#B "U ! CAP;N 8,SUB/ITUT$
  ,PROP]TY ,9COME01 ! CURR5T         #BG
              ,,IT-#EAA;,R          B#AA
  9T]PRET,N W APPLY ONLY = SUB/ITUT$
  PROP]TY ACQUIR$ 0! SP\SE AF ,DECEMB]
  #CJ1 #AIHG4

,EXAMPLE--,ASSUME ! FOLL[+3
  7#A7 9 #AIGE1 ! TAXPAY] TRANSF]R$
    CAPITAL PROP]TY )A FAIR M>KET VALUE
    ( 4#EJ1JJJ 6! TAXPAY]'S SP\SE AT !
    TAXPAY]'S ADJU/$ CO/ BASE (
    4#BJ1JJJ1
  7#B7 9 #AIGI1 ! SP\SE SOLD ! TRANSF]R$
    PROP]TY = 4#HJ1JJJ & ACQUIR$ A
    SUB/ITUT$ PROP]TY )! PROCE$S F !
    SALE1
  7#C7 9 #AIHH1 ! SP\SE 4POS$ (!
    SUB/ITUT$ PROP]TY = 4#ABJ1JJJ &
    ACQUIR$ SUB/ITUT$ PROP]TY )! PROCE$S
    F ! 4POSI;N1 &
  7#D7 9 #AIIJ1 ! SP\SE 4POS$ (!
    SUB/ITUT$ PROP]TY = 4#AEJ1JJJ4
-------------------------------------#AB
  ,! FOLL[+ >E ! 9COME TAX 3SEQU;ES (
  EA* TRANSAC;N3
                                     #BH
              ,,IT-#EAA;,R          A#AB
  7A7 ,S9CE ! TAXPAY] TRANSF]R$ !
    PROP]TY AT XS ADJU/$ CO/ BASE
    PURSUANT 6SUBSEC;N #GC7#A7 7Z X !N
    APPLI$7 "! 7 NO TAX 3SEQU;ES 9
    #AIGE4
  7B7 ,A 4#CJ1JJJ TAXA# CAPITAL GA9 7"O-
    HALF (! 4#FJ1JJJ GA97 0 ATTRIBUTA#
    6! TAXPAY] 9 #AIGI4
  7C7 ,A 4#AF1FFF TAXA# CAPITAL GA9
    7TWO-?IRD ( FIVE-EI<? (! 4#DJ1JJJ
    GA97 0 ATTRIBUTA# 6! TAXPAY] 9 #AIHH
    7SEE ,,IT-#BEH;,R#B74
  7D7 ,A 4#BB1EJJ TAXA# CAPITAL GA9
    7?REE-QU>T]S (! 4#CJ1JJJ GA97 0
    ATTRIBUTA# 6! TAXPAY] 9 #AIIJ4
  
         ,>TIFICIAL ,ATTRIBU;N
    
#BH4 ,SUBSEC;N #GD.E7#AA7 PROVIDES T !
  ATTRIBU;N RULES D N APPLY ": "O (! MA9
  R1SONS =A TRANSF] OR LOAN ( PROP]TY OR
  A S]IES ( ^! IS 6REDUCE ! AM.T ( 9COME
  TAX T WD 2 PAYA# ON ! 9COME OR GA9S4
  ,= EXAMPLE1 IF AN 9DIVIDUAL ) LL   #BI
              ,,IT-#EAA;,R          B#AB
  TAXA# 9COME 7 6BORR[ M"OY F A *>T]$
  BANK 6ACQUIRE BONDS : 7 SUBSEQU5TLY
  SOLD AT LESS ?AN FAIR M>KET VALUE 6!
  9DIVIDUAL'S SP\SE :O HAS SIGNIFICANT
  TAXA# 9COME1 SUBSEC;N #GD.E7#AA7 CD
  APPLY 6PREV5T ! ATTRIBU;N F ! SP\SE 6!
  9DIVIDUAL (! 9COME F ! BONDS4

         ,"PI;N+ AF ,4SOLU;N (
       ,MATRIMONIAL ,REGIMES 9 !
           ,PROV9CE ( ,QUEBEC
    
#BI4 ,SUBSEC;NS #BDH7#BB7 & 7#BC71 :
  APPLY AF ,JULY #AC1 #AIIJ1 PROVIDE
  RULES 3C]N+ ! [N]%IP ( PROP]TY T IS
  SUBJECT 6"PI;N FOLL[+ ! 4SOLU;N (A
  MATRIMONIAL REGIME1 S* Z A -MUN;Y (
  PROP]TY CR1T$ "U ! LAWS ( ,QUEBEC 7OR
  9 ANO!R CIVIL LAW JURISDIC;N74

  ,PROP]TY [N$ 3T9U\SLY 0"O SP\SE F A "T
  2F T PROP]TY 2CAME SUBJECT 6! REGIME
  IS DEEM$ 0P>AGRAPH #BDH7#BB77A7 6BE
  [N$ EXCLUSIVELY 0T SP\SE4 ,?US     #CJ
              ,,IT-#EAA;,R          C#AB
  ALL 9COME OR LOSS & TAXA# CAPITAL GA9S
  OR ALL[A# CAPITAL LOSSES F ! PROP]TY
  >E ATTRIBUTA# 6! [N] SP\SE ": P>AGRAPH
  #BDH7#BB77A7 APPLIES4 ,": P>AGRAPH
  #BDH7#BB77A7 DOES N APPLY1 P>AGRAPH
  #BDH7#BB77B7 DEEMS ! PROP]TY 6BE [N$
  0! SP\SE :O HAS ADM9I/R,N ( T PROP]TY
  & N 0! O!R SP\SE4 ,": P>AGRAPH
  #BDH7#BB77B7 APPLIES ! 9COME OR LOSS &
  TAXA# CAPITAL GA9S OR ALL[A# CAPITAL
  LOSSES F ! PROP]TY >E ATTRIBUTA# 6!
  SP\SE :O HAS ADM9I/R,N (! PROP]TY4

  ,SUBSEC;N #BDH7#BC7 APPLIES ":1 Z A
  3SEQU;E (! "PI;N ( PROP]TY ^U !
  4SOLU;N (A MATRIMONIAL REGIME1 PROP]TY
  T 0 PROP]TY (
-------------------------------------#AC
  "O SP\SE IMMLY 2F ! 4SOLU;N (! REGIME
  IS ALLOCAT$ 6! O!R SP\SE OR ! E/ATE (
  T O!R SP\SE4 ,": ! ALLOC,N IS 6! O!R
  SP\SE1 ! PROP]TY IS DEEM$ 6H BE5
  TRANSF]R$ 0! =M] SP\SE 6! LATT] IMMLY
  2F ! 4SOLU;N4 ,": ! 4SOLU;N (!     #CA
              ,,IT-#EAA;,R          A#AC
  MATRIMONIAL REGIME RESULTS F ! D1? (
  "O SP\SE ! TRANSF] IS DEEM$ 6H O3URR$
  IMMLY 2F ! DEEM$ 4POSI;N ON D1?4 ,=
  FUR!R -;TS ON SUBSEC;NS #BDH7#BB7 &
  7#BC71 SEE ! CURR5T V].N ( ,,IT-#CBE1
  ,PROP]TY ,TRANSF]S ,AF ,SEP>,N1
  ,DIVORCE & ,ANNUL;T4

  ,! DEF9I;N ( 8SP\SE0 & 8=M] SP\SE0 (A
  "PICUL> 9DIVIDUAL 9 SUBSEC;NS
  #BDH7#BB7 & 7#BC7 IS EXT5D$ 0SUBSEC;N
  #BEB7#C7 69CLUDE ANO!R 9DIVIDUAL (!
  OPPOSITE SEX :O IS A "PY 6A VOIDA# OR
  VOID M>RIAGE )! "PICUL> 9DIVIDUAL4

,EXAMPLE3
  ,! FOLL[+ IS AN EXAMPLE ( H[ ! 4SOLU;N
  (A MATRIMONIAL REGIME MAY A6ECT !
  ATTRIBU;N RULES 9 SUBSEC;NS #GD.A7#A7
  & #GD.B7#A74



                                     #CB
              ,,IT-#EAA;,R          B#AC
  ,ASSUME3
  7#A7 ,ON _! M>RIAGE1 ;,A & ;,B ADOPT$
    -MUN;Y ( PROP]TY Z _! MATRIMONIAL
    REGIME4
  7#B7 ,AT ! "T ( _! M>RIAGE ;,A [N$
    %>ES ( ,OPCO & RETA9$ !M UNTIL ! "T
    DESCRIB$ 9 7#D7 2L4
  7#C7 ,DUR+ _! M>RIAGE1 ;,B ACQUIR$ &
    ADM9I/]$ %>ES ( ,R1LTYCO UNTIL ! "T
    DESCRIB$ 9 7#D7 2L4
  7#D7 ;,A & ;,B DECID$ 6ALT] _!
    MATRIMONIAL REGIME 6T ( SEP>,N (
    PROP]TY & ACLY PREP>$ AN 9V5TORY (
    -MUN;Y PROP]TY4
  ,PURSUANT 6P>AGRAPH #BDH7#BB77A71 ;,A
  IS DEEM$ 6[N ! ,OPCO %>ES & PURSUANT
  6P>AGRAPH #BDH7#BB77B71 ;,B IS DEEM$
  6[N ! ,R1LTYCO %>ES4

  ,IF1 9 "PI;N+ ! PROP]TY1 ,A OBTA9S
  FULL [N]%IP (! ,R1LTYCO %>ES1 PURSUANT
  6SUBSEC;N #BDH7#BC7 "! W H BE5 A
  TRANSF] ( PROP]TY F ;,B TO ;,A IMMLY
  2F ! "PI;N+4 ,? TRANSF] W 2 A      #CC
              ,,IT-#EAA;,R          C#AC
  TRANSF] =! PURPOSES ( SUBSEC;NS
  #GD.A7#A7 & #GD.B7#A74

  ,IF1 9 "PI;N+ ! PROP]TY1 ;,A OBTA9S
  FULL [N]%IP (! ,OPCO %>ES1 SUBSEC;N
  #BDH7#BC7 WD N APPLY )! RESULT T "! WD
  2 NO TRANSF] 6: SUBSEC;NS #GD.A7#A7 &
  #GD.B7#A7 CD APPLY4

,NOTE3
  ,ON ,AUGU/ #CJ1 #AIIC ! ,M9I/] ( ,F9.E
  ISSU$ ,AM5D;TS 6! ,9COME ,TAX ,ACT &
  ,RELAT$ ,/ATUTES4 ,EXPLANATORY NOTES 7
  ISSU$
-------------------------------------#AD
  : ELABORATE ON ! PROPOS$ *ANGES4 ,!
  ,EXPLANATORY NOTES DESCRIBE T
  --SUBSEC;N #BDH7#BC7 W N APPLY
    64POSI;NS >IS+ Z A 3SEQU;E ( D1?S
    O3URR+ AF ,DECEMB] #BA1 #AIIB &
  --SUBSEC;N #BDH7#BC.A7 APPLIES 6C]TA9
    TRANSF]S ( PROP]TY 9 A PROV9CE ": !
    LAWS PROVIDE =! %>+ ( C]TA9 PROP]TY
    [N$ OR ACQUIR$ 0A SP\SE DUR+     #CD
              ,,IT-#EAA;,R          A#AD
    M>RIAGE4 ,! SUBSEC;N APPLIES ON
    TRANSF]S ( PROP]TY AF ! D1? (A
    TAXPAY] O3URR+ AF ,DECEMB] #BA1
    #AIIB & DEEMS ^! TRANSF]S ( PROP]TY
    6H O3URR$ EI Z A 3SEQU;E (! D1? (!
    TAXPAY] 7IN ! CASE ( PROP]TY
    TRANSF]R$ 6! DEC1S$ TAXPAY]'S SP\SE7
    OR IMMLY 2F ! "T T IS IMMLY 2F ! D1?
    (! TAXPAY] 7IN ! CASE ( PROP]TY
    TRANSF]R$ 6! DEC1S$ TAXPAY]'S
    E/ATE74
  
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