Excluded amount

Amount that is the individual's income for the year from a property or the individual's taxable capital gain or profit for the year from the disposition of a property. The amount must meet the following conditions:

• If the individual has not reached age 24 before the year, the amount is income from a property that the individual inherited from a parent. If the individual inherited the property from another person, the individual must be a full-time student, or be eligible for the disability tax credit, in the year in which the income must be reported.
• The amount is income from a property that was transferred to the individual by their spouse or de facto spouse pursuant to a decree, order or judgment of a competent tribunal or pursuant to a written separation agreement if, at that time, the individual and the spouse or de facto spouse were separated and living apart as a result of the breakdown of their marriage or de facto union.
• The amount is a taxable capital gain resulting from the deemed disposition of the individual's capital property immediately before the individual's death.
• The amount is a taxable capital gain (except a capital gain deemed to be a dividend) resulting from the disposition by the individual of property that is, at the time of the disposition, qualified farm or fishing property or qualified small business corporation shares.
• If the individual reached age 17 before the year, the amount is not derived, directly or indirectly, from a related business of the individual or it is derived, directly or indirectly, from an excluded business of the individual.
• If the individual reached age 17 but not age 24 before the year, the amount is either:
  • a safe harbour capital return of the individual; or
  • a reasonable return of the individual, taking into account only the individual's contributions of arm's-length capital.
• If the individual reached age 24 before the year, the income is:
  • income from excluded shares of the individual;
  • a taxable capital gain from the disposition of excluded shares of the individual; or
  • a reasonable return in respect of the individual.