Professional Documents
Culture Documents
Intended Purpose:
Deliveries Sale is
50%
Capital
Resell to Sale is
100%
Truckers Business
Long-period Short-period
Time Time
Speaks of Speaks of
Long-term Short-term
intent intent
Period of ownership by itself does not provide
compelling evidence of intention.
Examine:
Entitys course of conduct over period of ownership,
dwelling on the point of acquisition,
the use of the property during its ownership, and
Reasons for and nature of its disposition.
For
Sale
Dual Purpose
Are:
Share of a resident Canadian corporation,
Obligations issued by a resident of Canada such as,
a unit of a mutual fund,
bond,
debenture,
mortgage, or
other similar obligations
3. Financial property
Includes:
shares, bonds, loans,
land, buildings, equipment,
patents, licences, franchises, and
vehicles.
Less
Adjusted Cost Base XX
Expense of dispositions X XX
Normally:
ACB = original purchase price plus other costs incurred, like:
brokerage fees,
installation costs, and
legal fees
+/-
Copyright 2016 McGraw-Hill Ryerson, Limited. All rights reserved. 23
Adjusted Cost Base (ACB)
CAPITAL LOSS
Taxpayer sold 500 shares in Corp X for $8,000 on Dec. 31, 20X0.
They had an ACB of $10,000. On Jan 5, 20X1 he reacquires 500
shares of Corp X for $7,500.
Shares sold on December 31, 20X0
POD $ 8,000
ACB ( 10,000)
Actual loss ($ 2,000)
Superficial loss deemed to be nil nil
ACB of shares purchased on Jan 5, 20X1
Original POD $ 7,500
Denied loss ITA 53(1)(f) 2,000
New ACB $ 9,500
A principal residence:
Owned and ordinarily inhabited for personal use - ITA 54.
May be subject to capital gain on sale, however:
Can be reduced if deemed principal residence
Designation At Sale
One Principal Residence Per Family Unit