COMMERCE 4SB3 Lecture Notes - Lecture 8: Finance Lease, Operating Lease, Dividend Tax
13 Nov 2018
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If you buy and sell within 30-day period; have a superficial loss. First look at capital gain reserves but first look at gains from chapter 4 (21n reserve) 21(1)(n) reserve = (a/r not due/sales) x profit. 20 (8) can only claim that reserve (20in) for 36 months (i. e. 3 years) 40 (1)(a) a capital gain reserve (pg. 422) =lesser of: (proceeds not due/total proceeds) x gain (1/5x gain)- (4 - # of years after disposition); forces you to take capital gain over 5 year period. Max capital gain you can take in the first year is 80% of the gain, in the second year can take 60%, 3rd year, 40%, 4th 20%, 5th year nothing. With leases: capital lease but clie(cid:374)t has (cid:396)e(cid:272)o(cid:396)ded as ope(cid:396)ati(cid:374)g lease. Fo(cid:396) ta(cid:454), it"s al(cid:449)a(cid:455)s a(cid:374) operating lease, never have a capital lease. If you have vacant land, expense all of those for accounting.
