16 July 2020 Internal T.I. 2019-0817271I7 F - Indemnités reçues à la suite de la négociation -- summary under Paragraph (e)

A governmental authority will acquire a number of residential, commercial, forestry, agricultural and undeveloped properties for a construction project pursuant to privately-negotiated terms including a sales price and further sums agreed to be paid to the owners to compensate them for various losses suffered. In the course of a general discussion, CRA indicated that compensation received for loss of value to lands retained by the owners could be compensation in respect of injuriously affected property and, therefore, could be “proceeds of disposition” pursuant to para. (e) of the definition (if the remainder were capital property), in which case a reasonable portion of the ACB of the remainder would be required to be allocated to the disposed of portion pursuant to s. 43(1).