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...
Farn v. The Queen, 95 DTC 5426, [1995] 1 CTC 152, [1995] DTC 5455 (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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 80 | |
| Tax Topics - Other Legislation/Constitution - Federal - Official Languages Act - Section 13 | 32 |
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....
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | 39 |
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...
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...
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...
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...
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...
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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) | 79 | |
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(5) | 79 | |
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(5.1) | 79 |
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...
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. R., 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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(a) | 102 |
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...