Income Tax Regulations

8102 (1) In this section, excluded property, of a taxpayer, means a mark-to-market property used in a business of the taxpayer in its taxation year that includes October 31, 1994 where it is reasonable to expect that the property would have been valued at its fair market value for the purpose of computing the taxpayer’s income from the business for the year if

• (a) the Act were read without reference to subsection 142.5(2); and

• (b) the property were held at the end of the year.

(2) For the purpose of subsection 142.5(4) of the Act, the prescribed amount for a taxpayer’s taxation year that includes October 31, 1994 is the amount, if any, by which

• (a) the total of all amounts each of which is the taxpayer’s profit from the disposition in the year, because of subsection 142.5(2) of the Act, of a property other than a capital property or an excluded property

exceeds the total of

• (b) the total of all amounts each of which is the taxpayer’s loss from the disposition in the year, because of subsection 142.5(2) of the Act, of a property other than a capital property or an excluded property, and

• (c) the amount, if any, by which

  • (i) the total of all amounts each of which is the taxpayer’s loss from the disposition in the year of a mark-to-market property (other than a capital property, an excluded property or a property disposed of because of subsection 142.5(2) of the Act)

  exceeds

  • (ii) the total of all amounts each of which is the taxpayer’s profit from the disposition in the year of a mark-to-market property (other than a capital property, an excluded property or a property disposed of because of subsection 142.5(2) of the Act).