Section 79

Cases

Brill v. The Queen, 96 DTC 6572, [1997] 1 CTC 2 (FCA)

In finding that the proceeds of disposition for the sale by the taxpayer, following its default to the mortgagee, of its property pursuant to a...

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Farn v. The Queen, 95 DTC 5426, [1996] 1 CTC 19, [1995] 1 CTC 152 (FCTD)

Pinard J. found that in the pre-1995 version of s. 79(c) there was no limitation that the principal amount of the taxpayer's claim be included...

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Ward v. The Queen, 88 DTC 6212, [1988] 1 CTC 336 (FCTD)

The taxpayers were found to be the effective owners of lands that were foreclosed, notwithstanding that they were not on title as the mortgagors....

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Ownership doctors were property owners notwithstanding holding of title by trustees 49
Tax Topics - Income Tax Act - Section 18 - Subsection 18(2) 51
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business adventure is not the carrying on of a business 46
Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(g) 34

See Also

Waltz v. The Queen, 2001 DTC 462 (TCC)

The proceeds of disposition to the taxpayer (the current debtor) with respect to the foreclosure of a U.S.-dollar mortgage loan were determined by...

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Administrative Policy

8 December 1997 External T.I. 9721155 - JUDICIAL SALE AND FORECLOSURE

"The Department accepts that section 79 of the Act does not apply to either the mortgagor or the mortgagee where the judicial order specifies a...

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14 January 1993 T.I. 922579 (November 1993 Access Letter, p. 500, ¶C76-076)

Where a corporation has retained title to land inventory until the purchaser pays the balance of the purchase price, and the purchaser then gives...

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11 January 1993 T.I. 923216 (November 1993 Access Letter, p. 499, ¶C76-075)

Where an acceleration clause in a debt obligation of a purchaser causes the obligation to become due in the same year as sale, no reserve will be...

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25 November 1992 T.I. 921512 (September 1993 Access Letter, p. 415, ¶C76-073)

S.79(c) deals only with the principal amount of debt. S.80(1) deals separately with accrued simple interest but does not apply to accrued compound...

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18 July 1991 T.I. (Tax Window, No. 7, p. 4, ¶1362)

Where a vendor sells property for proceeds payable in year 2, and following default by the purchaser in year 2 the vendor is granted a final order...

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17 April 1991 T.I. (Tax Window, No. 2, p. 24, ¶1206)

S.79 applies where a mortgagor executes a quit claim and release by virtue of which his interest in a property is transferred to the mortgagee in...

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11 June 1990 T.I. (November 1990 Access Letter, ¶1524)

Where a parent corporation sells depreciable property to a wholly-owned subsidiary under a sales agreement, the depreciable property is...

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88 C.R. - Q.56

The principal amount of a guarantor's claim for purposes of s. 79(c) is the amount owing by that taxpayer under the terms of the guarantee.

ATR-7 (22 Jan. 86)

Where X Ltd. sold the assets of a business to Y Ltd. for consideration which included the sum of $750,000 payable in quarterly instalments of...

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86 C.R. - Q.58

The word "it" in s. 79(c) refers to the principal amount of any debt that has been owing by the other person.

86 C.R. - Q.59

The loss provided for in s. 79(d) will be of the same character as the property disposed of as a consequence of the foreclosure.

84 C.R. - Q.28

S.79(f) does not allow the inclusion of legal fees incurred by the creditor in acquiring the property, in the cost to him of the property.

IT-505 "Mortgage Foreclosures and Conditional Sales Repossessions"

General discussion.

Articles

Laushway, "Section 79: A Hazard Zone", Canadian Current Tax, March 1991, p. C49.

Goodwin, "Tax Consequences of Repossessions, Foreclosures, Forced Sales and Defaults", 1983 Corporate Management Tax Conference, p. 111.

Subsection 79(2) - Surrender of property

Cases

Hallbauer v. The Queen, 98 DTC 6275, [1998] 3 CTC 115 (FCA)

The transfer by the taxpayer to his sister and former wife of his interest in two buildings in consideration for a reduction in the amount he owed...

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Words and Phrases
in consequence of

See Also

Dieni v. The Queen, 2001 DTC 290 (TCC)

The transfer of Quebec real estate by the taxpayer to a lender pursuant to a Deed of Giving In Payment which was executed following an action by...

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Articles

Janette Pantry, Carrie Smit, "Tax Considerations in Restructuring under the Companies’ Creditors Arrangement Act", draft 2020 CTF Annual Conference paper

Description of credit bid (pp. 11-12)

  • Under a credit bid, which allows an existing secured creditor to bid up to the full face amount of their...

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Words and Phrases
in consequence of