• Marginal note:Apprentice mechanics’ tool costs

  (r) if the taxpayer was an eligible apprentice mechanic at any time after 2001 and before the end of the taxation year, the amount claimed by the taxpayer for the taxation year under this paragraph not exceeding the lesser of

  • (i) the taxpayer’s income for the taxation year computed without reference to this paragraph, and

  • (ii) the amount determined by the formula

    (A - B) + C

    where

    A

    is the total of all amounts each of which is the cost to the taxpayer of an eligible tool acquired in the taxation year by the taxpayer or, if the taxpayer first becomes employed as an eligible apprentice mechanic in the taxation year, the cost to the taxpayer of an eligible tool acquired by the taxpayer in the last three months of the preceding taxation year,

    B

    is the lesser of

    • (A) the value of A for the taxation year in respect of the taxpayer, and

    • (B) the greater of $1,000 and 5% of the total of all amounts, each of which is the taxpayer’s income from employment for the taxation year as an eligible apprentice mechanic, computed without reference to this paragraph, and

    C

    is the amount by which the amount determined under this subparagraph for the preceding taxation year in respect of the taxpayer exceeds the amount deducted under this paragraph for that preceding taxation year by the taxpayer.

• Marginal note:Apprentice mechanics

  (6) For the purpose of paragraph (1)(r),

  • (a) a taxpayer is an eligible apprentice mechanic in a taxation year if, at any time in the taxation year, the taxpayer

    • (i) is registered in a program established in accordance with the laws of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and

    • (ii) is employed as an apprentice mechanic;

  • (b) an eligible tool is a tool (including ancillary equipment) that

    • (i) is acquired by a taxpayer for use in connection with the taxpayer’s employment as an eligible apprentice mechanic,

    • (ii) has not been used for any purpose before it is acquired by the taxpayer, and

    • (iii) is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in, the taxpayer’s employment as an eligible apprentice mechanic; and

  • (c) a taxpayer who, for a taxation year, is not an eligible apprentice mechanic and has an excess amount determined under the description of C in subparagraph (1)(r)(ii) is, for the taxation year, entitled to claim a deduction under that paragraph as if that excess amount were wholly applicable to an employment of the taxpayer.

• Marginal note:Cost of tools of an apprentice mechanic

  (7) Except for the purpose of the description of A in subparagraph (1)(r)(ii), the cost to a taxpayer of an eligible tool the cost of which was included in determining the value of that description in respect of the taxpayer for a taxation year is the amount determined by the formula

  K- (K × L/M)

  where

  K

  is the cost to the taxpayer of the tool determined without reference to this subsection;

  L

  is the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil; and

  M

  is the value of A determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year.

• (a.1) a taxpayer’s taxable capital gain for a taxation year from the disposition of any property is + of the taxpayer’s capital gain for the year from the disposition of the property if

• (m) any part of the cost to the taxpayer of the property that was deductible (otherwise than because of this subdivision or paragraph 8(1)(r)) in computing the taxpayer’s income for any taxation year commencing before that time and ending after 1971;

• Marginal note:Apprentice tools, re proceeds

  (k) all amounts received in the year by a person or partnership (in this paragraph referred to as the “vendor”) as consideration for the disposition by the vendor of a property the cost of which was included in computing an amount under paragraph 8(1)(r) in respect of the vendor or in respect of a person with whom the vendor does not deal at arm’s length, to the extent that the total of those amounts received in respect of the disposition in the year and in preceding taxation years exceeds the total of the cost to the vendor of the property immediately before the disposition and all amounts included in respect of the disposition under this paragraph in computing the vendor’s income for a preceding taxation year, unless the property was acquired by the vendor in circumstances to which subsection 85(5.1) or subsection 97(5) applied;

• Marginal note:Repayment of pension or benefits

  (n) any amount paid by the taxpayer in the year as a repayment (otherwise than because of Part VII of the Unemployment Insurance Act, chapter U-1 of the Revised Statutes of Canada, 1985, or of Part VII of the Employment Insurance Act) of any of the following amounts to the extent that the amount was included in computing the taxpayer’s income, and not deducted in computing the taxpayer’s taxable income, for the year or for a preceding taxation year, namely,

  • (i) a pension described in clause 56(1)(a)(i)(A),

  • (ii) a benefit described in clause 56(1)(a)(i)(B),

  • (iii) an amount described in subparagraph 56(1)(a)(ii),

  • (iv) a benefit described in subparagraph 56(1)(a)(iv),

  • (v) a benefit described in subparagraph 56(1)(a)(vi), and

  • (vi) an amount described in paragraph 56(1)(r);

• (e.1) is an amount that

  • (i) is not paid or payable in respect of entertainment or of a conference, convention, seminar or similar event,

  • (ii) would, if this Act were read without reference to subparagraph 6(6)(a)(i), be required to be included in computing a taxpayer’s income for a taxation year because of the application of section 6 in respect of food or beverages consumed by the taxpayer or by a person with whom the taxpayer does not deal at arm’s length,

  • (iii) is paid or payable in respect of the taxpayer’s duties performed at a site in Canada at which the person carries on a construction activity or at a construction work camp referred to in subparagraph (iv) in respect of the site, and

  • (iv) is paid or payable for food or beverages provided at a construction work camp, at which the taxpayer is lodged, that was constructed or installed at or near the site to provide board and lodging to employees while they are engaged in construction services at the site; or

• Marginal note:Transfer of farm property to child

  (9) If any land in Canada or depreciable property in Canada of a prescribed class of a taxpayer to which subsection (5) would otherwise apply was, before the taxpayer’s death, used principally in a farming business in which the taxpayer, the taxpayer’s spouse or common-law partner or any of the taxpayer’s children was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot), the property is, as a consequence of the death, transferred or distributed to a child of the taxpayer who was resident in Canada immediately before the death and it can be shown, within the period ending 36 months after the death or, if written application that this subsection apply has been made to the Minister by the taxpayer’s legal representative within that period, within any longer period that the Minister considers reasonable in the circumstances, that the property has vested indefeasibly in the child,

• (i) a share in the capital stock of a Canadian corporation that would be a share in the capital stock of a family farm corporation if paragraph (a) of the definition “share of the capital stock of a family farm corporation” in subsection (10) were read without the words “in which the person or a spouse, common-law partner, child or parent of the person was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot)”, or

principally in the course of carrying on a farming business in Canada in which the person or a spouse, common-law partner, child or parent of the person was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot),

principally in the course of carrying on a farming business in Canada in which the person or a spouse, common-law partner, child or parent of the person was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot),