COMM 319 Lecture Notes - Lecture 15: Property Income, Federal Charter Of 1291, Inter Vivos
Document Summary
When an individual leaves canada he is deemed to have disposed of all his property at fmv 128. 1(4)(b: real property - building and land situated in canada, capital property used in a business in canada, including ecp. Exceptions to 128. 1(4)(b: rrsp"s, rpp"s, dpsp"s & rhosp"s. Inventory of a business carried on in canada. ********** 1 to 3 is taxed only when actually sold ************ S 69(1)(a): where a t/p acquires anything from a non-arm"s length person for more than fmv, he is deemed to have acquired it at fmv. S 69(1)(b): where a t/p has disposed of anything: 1) to a non-arm"s length person for pod < than fmv. 2) by way of gift, inter vivos to any person (arm"s length or not). The t/p will be deemed to have received pod = to fmv. The purchaser in situation 1) will have an acb = to the amount paid, and acb = to fmv in situation 2).