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Flag Canada Revenue
Agency		 Agence du revenu
du Canada		 Protected B when completed
 
Election on Disposition of Property by a Taxpayer to a Canadian Partnership
 
• This form is used by a taxpayer and a Canadian partnership (of which the taxpayer is a member immediately after
the transfer) to jointly elect under subsection 97(2).		 Do not use this area
   
• A Canadian partnership is a partnership where all of its members are resident in Canada.  
   
• In order to file this election you must have a valid CRA account number. For information on how to obtain one, go
to canada.ca.		  
   
• Unless otherwise stated, all legislative references are to the federal Income Tax Act.  
   
• To file this form electronically, go to canada.ca/cra-special-elections-and-returns.
Or mail one copy of this election and related documents (if any), completed by the transferor, as follows:		  
   
–  to the tax centre of the transferor  
   
–  on or before the earliest date on which any party to the election has to file an income tax return for the tax year
in which the transaction occurred (due date). This due date must consider any election under subsection 25(1)
or 99(2), and		  
–  separately from any other return
   
• When many transferors elect to transfer the same property (co-ownership) or many members of the same partnership elect to transfer their partnership
interests, the elections will be processed together and should be filed:
–  to the tax centre of the transferee;
–  on or before the due date;
–  by a designated transferor to file all of the completed forms for each transferor, together with a list of all of the electing transferors. This list should contain
the name, address and social insurance, trust account or business number of each transferor and of each member of the transferee, and
–  separately from any other return.
• To find the address of the transferor's and transferee's tax centre, go to canada.ca/tax-centres.
 
Amended election  010 Yes
 
 
Part 1 – Identification
  
 
 Is the transferor a non-resident of Canada? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 004 Yes No
 
  If yes, enter the transferor's taxpayer identification number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 020  
 
002  Name of individual, corporation, trust or partnership (transferor) 001  Social insurance, business or trust account
     number
 
 Address  City
 
 Province or State  Postal or ZIP code  Country
 
 Tax year of the taxpayer 011   Year Month Day 012   Year Month Day
     Start:  End:
 If the taxpayer is an individual, or a member(s) of the partnership (transferor or transferee) is an individual, are all of the
 individuals or their spouse self-employed for the year of the election? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 025 Yes
 
 
019  Name of contact person 024  Name of firm 022  Telephone number 023  Extension
 
 
015  Name of the partnership (transferee) 016  Partnership account number
 
 Address  City  Province  Postal code
 
 Tax year of partnership 017   Year Month Day 018   Year Month Day
     Start:  End:
 
T2059 E (22) (Ce formulaire est disponible en français.) Page 1 of 7 Canada Logo
Protected B when completed
 
Part 2 – Penalty for late-filed and amended elections
  
 
  An election that is filed after its due date will be subject to a late-filing penalty. Form T2059 can be filed within three years after its due date if an estimate of
the penalty is paid at the time of filing. Form T2059 can also be amended or filed after the 3-year period at the minister's discretion, but a written explanation
of the reason the election is amended or late-filed must be attached for consideration by the minister and an estimate of the applicable penalty must be paid
at the time of filing.
  Calculation of late-filing penalty:
 
  Total fair market values (FMV) of the disposed properties from Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
 
  Total agreed amounts of the disposed properties from Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
 
  Subtotal (total FMV minus total agreed amounts)  2A
     
  Amount 2A  x ¼ x 1% x Number of months *  = 2B
     
  $100 x Number of months *  = 2C
     
  Amount 2C cannot exceed $8,000 
  Late-filing penalty (amount 2B or amount 2C, whichever is less) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320  
     
  Amount enclosed  400  
     
  If paying by cheque or money order, make payable to the Receiver General. Write "T2059", the transferor's name, their social insurance, trust account or
business number on the back of the cheque or money order. **
 
  * Number of months is the sum of each month or each part of a month in the period from the filing due date to the actual date filed.
 
  ** Daily compound interest at the prescribed rate applies to unpaid amounts, including late-filing penalties.
 
 
Part 3 – Information required
  
 
  On the attached Schedule A, list, describe, and state the fair market value (FMV) of the transferred properties. The description and FMV of the consideration
received must be shown opposite of the related property transferred. In the case of depreciable property, the Minister can determine the order in which such
properties are disposed of unless you have designated the order of disposition of each depreciable property before the filing due date for this election. It may
be necessary for you to prepare the following material to complete the form: the calculation of the adjusted cost base of all transferred properties, a summary
of the method of evaluating the FMV of each property transferred; schedules supporting this election; a designation concerning the order of disposition of
depreciable property; and documentation relating to the responses to the questions below. If there is not enough space on the form, complete extra
schedules giving similar details. This material does not need to be filed with the election, but, must be kept in case we ask to see it at a later date.
 
1. Is there a written agreement relating to this transfer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Yes No N/A
 
2. Is there a valuation report for the transferred properties? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Yes No N/A
 
  (A valuation report is an independent assessment of the fair market value of the transferred property)
3. Does a price adjustment clause apply to any of the properties? (See Income Tax Folio S4-F3-C1 for details) . . . 202 Yes No N/A
 
4. If the transferor is a non-resident, are any taxable Canadian properties transferred? . . . . . . . . . . . . . . . . . . . 203 Yes No N/A
 
 Where shares of the capital stock of a private corporation are included in the property disposed of, provide the following:
 
  Name of corporation Business number Total paid-up
capital (under the
federal Income
Tax Act)
  216 217 218
       
1.
2.
3.
4.
5.
 
 
Notes
  
• The rules for subsection 97(2) elections are complex. Essential information is contained in Information Circular IC76-19, Interpretation Bulletins IT-291,
IT-413 and IT-471 and Income Tax Folio S4-F3-C1.
• Complete all the information areas and answer all questions. If this form is incomplete, we may consider the election invalid and a late-filing penalty may be
applied to future submissions.
• Taxable Canadian property is defined under subsection 248(1).
 
T2059 E (22)     Page 2 of 7  
Protected B when completed
 
 
Part 4 – Election and certification
  
 
  The taxpayer (transferor) and all members of the partnership (transferee) hereby jointly elect under subsection 97(2) in respect of the property specified, and
certify that the information given in this election, and in any documents attached, is true, correct and complete to the best of their knowledge.
 
  Section A - Transferor
 
  (i) Transferor (individual, corporation or trust information)
 
  300   302    
  Print name of transferor or authorized signing officer   Position or office  
 
  303   304   Date  
  Signature of transferor or authorized signing officer   Year Month Day  
 
  (ii) Transferor (partnership information)
 
  Provide information for all members of the partnership
 Is there an authorizing agreement? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 Yes No
  If yes, then you may submit the agreement with the election or make it available upon request.
 
  306   307    
  Print name of authorized person   Position or office  
 
  308   309   Date  
  Signature of authorized person   Year Month Day  
 
  List below all members of the partnership. If there is no authorizing agreement attached, each member must sign and date on the applicable line with their
details.
  If space is insufficient, attach another "Part 4 – Election and certification, Section A" as required to complete the list.
  If a member of the partnership is itself a partnership, attach a separate list showing the name, social insurance number, trust account number, or business
number of each member of that partnership.
 
  Social insurance,
business or
trust account number
 Print name Taxation year-end
(YYYY/MM/DD)		 Signature Date
(YYYY/MM/DD)
  330 335 340 345 350
           
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
 
T2059 E (22) Page 3 of 7
Protected B when completed
 
 
Part 4 – Election and certification (continued)
  
 
  Section B – Transferee (partnership information)
 
  Provide information for all members of the partnership.
 Is there an authorizing agreement? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Yes No
  If yes, then you may submit the agreement with the election or make it available upon request.
 
  362   363    
  Print name of authorized person   Position or office  
 
  364   365   Date  
  Signature of authorized person   Year Month Day  
 
  List below all the members of the partnership. If there is no authorizing agreement attached, each member must sign and date on the applicable line with their
details.
  If space is insufficient, attach another "Part 4 – Election and certification, Section B" as required to complete the list.
  If a member of the partnership is itself a partnership, attach a list showing the name, social insurance number, trust account number, or business number of
each member of that partnership.
 
  Social insurance,
business or
trust account number
 Print name Taxation year end
(YYYY/MM/DD)		 Signature Date
(YYYY/MM/DD)
  370 375 380 385 390
           
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
 
 
Privacy notice
  
  Personal information (including the SIN) is collected to administer or enforce the federal Income Tax Act and related programs and activities including
administering tax, benefits, audit, compliance, and collection. The information collected may be used or disclosed for the purposes of other federal acts that
provide for the imposition and collection of a tax or duty. It may also be disclosed to other federal, provincial, territorial, or foreign government institutions to
the extent authorized by law. Failure to provide this information may result in paying interest or penalties, or in other actions. Under the Privacy Act,
individuals have a right of protection, access to and correction of their personal information, or to file a complaint with the Privacy Commissioner of Canada
regarding the handling of their personal information. Refer to Personal Information Bank CRA PPU 005, PPU 015 and PPU 047 on Information about
Programs and Information Holdings at canada.ca/cra-information-about-programs.
 
 
T2059 E (22) Page 4 of 7
 
Protected B when completed
Schedule A
 
 
Information on the property disposed of and consideration received
  
    Year Month Day  
  Date of sale or transfer of all properties listed on Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500    
  For properties sold or transferred on different dates, use a separate Form T2059.  
 Capital property (other than shares and depreciable property)
  Brief legal
description
of the disposed
property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 513 minus
line 512) 4		 Description of
consideration
received
(non-partnership
interest)		 FMV
of consideration
received
(non-partnership
interest)		 % of
partnership
interest
received		 FMV of
consideration
received
(partnership
interest)		 Total
FMV
of the
consideration
received
(line 516 plus
line 518)
  510 511 512 513 514 515 516 517 518 519
                     
1.
2.
3.
 Capital property – shares only
  Number and class
of shares		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 523 minus
line 522) 4		 Description of
consideration
received
(non-partnership
interest)		 FMV
of consideration
received
(non-partnership
interest)		 % of
partnership
interest
received		 FMV of
consideration
received
(partnership
interest)		 Total
FMV
of the
consideration
received
(line 526 plus
line 528)
  520 521 522 523 524 525 526 527 528 529
                     
1.
2.
3.
 Depreciable property
  Description and
prescribed class
of the disposed
property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1, 3		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 533 minus
line 532) 4		 Description of
consideration
received
(non-partnership
interest)		 FMV
of consideration
received
(non-partnership
interest)		 % of
partnership
interest
received		 FMV of
consideration
received
(partnership
interest)		 Total
FMV
of the
consideration
received
(line 536 plus
line 538)
  530 531 532 533 534 535 536 537 538 539
                     
1.
2.
3.
 
T2059 E (22) Page 5 of 7
 
Protected B when completed
 
Information on the property disposed of and consideration received (continued)
  
 Inventory excluding real property
  Description
(kind of property)		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 543 minus
line 542) 4		 Description of
consideration
received
(non-partnership
interest)		 FMV
of consideration
received
(non-partnership
interest)		 % of
partnership
interest
received		 FMV of
consideration
received
(partnership
interest)		 Total
FMV
of the
consideration
received
(line 546 plus
line 548)
  540 541 542 543 544 545 546 547 548 549
                     
1.
2.
3.
 Inventory – real property
  Brief legal description of
disposed property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 553 minus
line 552) 4		 Description of
consideration
received
(non-partnership
interest)		 FMV
of consideration
received
(non-partnership
interest)		 % of
partnership
interest
received		 FMV of
consideration
received
(partnership
interest)		 Total
FMV
of the
consideration
received
(line 556 plus
line 558)
  550 551 552 553 554 555 556 557 558 559
                     
1.
2.
3.
 Resource property
  Brief legal description of
disposed property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 563 minus
line 562) 4		 Description of
consideration
received
(non-partnership
interest)		 FMV
of consideration
received
(non-partnership
interest)		 % of
partnership
interest
received		 FMV of
consideration
received
(partnership
interest)		 Total
FMV
of the
consideration
received
(line 566 plus
line 568)
  560 561 562 563 564 565 566 567 568 569
                     
1. nil
2. nil
3. nil
 
T2059 E (22) Page 6 of 7
 
Protected B when completed
 
Endnotes
  
  1 For more information on limits, see Interpretation Bulletin IT-291, Transfer of Property to a Corporation Under Subsection 85(1).
  2 Adjusted cost base (subject to adjustment under section 53).
  3 The lesser of the undepreciated capital cost of all property of the class and the cost of the property.
  4 If the amount is greater than 0, it must be reported either as a capital gain or as income, whichever applies. Also, in the case of depreciable property, a portion of the amount may have to be reported as a
capital gain while another portion of the amount may have to be reported as income.
 
 
T2059 E (22) Page 7 of 7