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In cases where the exchanged securities are partnership interests, a special calculation is required to determine the capital gain to be reported. The information in this chapter also applies if, for the 1994 tax year, you filed Form T664, Election to Report a Capital Gain on Property Owned at the End of February 22, 1994, for your shares of, or interest in, a flow-through entity. To qualify for the capital gains deferral for investment in small business, the investment must be in an eligible small business corporation. Who is eligible to claim the capital gains deduction? State that you are reporting the property as being sold to your spouse or common-law partner at its FMV and that you do not want subsection 73(1) of the Income Tax Act to apply.