The stop loss rules in s. 100(4) or 93(2.2) apply at the time of the actual disposition of the property to determine the amount of the taxpayer's capital loss. It is that adjusted amount of the loss to which s. 40(3.4) may apply if, for example, there was a disposition to an affiliate.
The position of the taxpayer that where s. 40(3.4) applies to the disposition of a limited partnership interest, s. 100(4) would not apply until the deemed disposition date set for in s. 40(3.4)(b) "could result in a different loss being calculated, and, in fact, could result in the circumvention of ss.100(4) or 93(2.2) entirely, depending on the circumstances".