Does the new TCP Definition apply to property acquired before the Budget date?
Yes. The new TCP Definition applies to all dispositions that occur after March 4, 2010, regardless of when the property was acquired. However, it should be noted that certain shares acquired prior to March 4, 2010 may be deemed to constitute TCP, regardless of whether the shares ever derived any part of their value from Canadian real property or resource property. For example, under the prior definition of TCP, shares that were acquired pursuant to certain tax-deferred transactions (such as amalgamations, conversions and certain share-for-share exchanges), were generally deemed to be TCP indefinitely. Under the new rules, this deemed status will continue to apply for a five year period following the particular tax-deferred transaction, regardless of whether the shares derived any of their value from Canadian real property or resource property at the time of the transaction or at any other time. As a result, shares of a corporation acquired prior to March 4, 2010 may still constitute TC
