Capital_Gains_and_Losses_(Part_II)

Capital_Gains_and_Losses_(Part_II) - Identical Properties...

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1 Identical Properties Identical Properties Properties of an identical nature acquired over a period of time and at different costs. The ACB of each identical property acquired is the weighted average cost of all the identical properties acquired up to the point of sale [s.47]
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2 ACB – Identical Properties ACB – Identical Properties Acquire shares as follows: Year # of Shares Cost per share Total 20X0 100 $6 $ 600 20X1 200 8 1,600 20X2 80 10 800 380 3,000 ACB per share ($3,000/380) = $7.89 Sale Proceeds (150 x $9) $1,350 ACB (150 x 7.89) ( 1,183) Capital Gain $ 167
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3 Principle Residence [s.54] Principle Residence [s.54] Definition: Any housing unit + up to 1/2 hectare of adjacent land (just over 1 acre), Owned alone or jointly, Ordinarily inhabited by taxpayer, spouse, former spouse, dependent children, At any time in the year .
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4 Principle Residence Principle Residence Must designate as such in year of disposal. If surrounding land greater than 1/2 hectare, additional land must be shown to be necessary Only one property can be designated for a particular year after 1981 by the family unit (taxpayer, spouse & minor children).
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5 Principal Residence Principal Residence Reduction Formula [ITA 40(2)(b)] : 1 + # Yrs. Designated Principal Residence X Gain Number of Years Owned
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6 Change in Use
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This note was uploaded on 04/23/2011 for the course RSM 324 taught by Professor Kitunen during the Spring '08 term at University of Toronto- Toronto.

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Capital_Gains_and_Losses_(Part_II) - Identical Properties...

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