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1.3 Fair Market Value If Improvement On More Than One Parcel

In This Volume

1.3 (1) If

  • (a) the same improvement is located on more than one parcel,
  • (b) each parcel on which the improvement is located is the subject matter of a taxable transaction,
  • (c) the transferee under each taxable transaction referred to in paragraph (b) is
    • (i) the same person,
    • (ii) a related individual to the other transferees, or
    • (iii) an associated corporation to the other transferees, within the meaning of section 256 of the Income Tax Act (Canada), and
  • (d) all the applications for registration of the taxable transactions referred to in paragraph (b) are filed at a land title office within 6 months of the date of the first application for registration,
  • all the taxable transactions are deemed to be a single taxable transaction and the transferees referred to in paragraph (c) are jointly and severally liable to pay the total tax.
  • (2) The filing date of the application for all the taxable transactions that are deemed to be a single transaction under subsection (1) is deemed to be the date that the first application for registration is filed in the land title office.
  • (3) Subsection (1) applies only for the purpose of determining the fair market value of the parcels of land described in subsection (1).



Improvements on More Than One Parcel

If an improvement straddles more than one parcel of land, the parcels are treated as a single parcel if all of the parcels are the subject of a taxable transaction and if all of the parcels are transferred to the same or a related person or to the same or an associated corporation. The transactions must take place either at the same time or within six months. The fair market value for each parcel is combined and shown on the first tax return. A separate tax return is prepared for each of the other parcels showing a market value of “nil”. For further information, see Bulletin PTT 027, Improvements Straddling More Than One Parcel of Land, March 2016.