RSM324H1 Lecture 8: Chapter 08
Document Summary
Gains and losses on the disposition of capital property capital gains. Determining capital gains and losses general rules. Four factors in establishing the ta(cid:454)pa(cid:455)er"s origi(cid:374)al i(cid:374)te(cid:374)tio(cid:374): period of ownership, nature of the transaction, number and frequency of the transactions, relatio(cid:374) of tra(cid:374)sa(cid:272)tio(cid:374) to ta(cid:454)pa(cid:455)er"s (cid:271)usi(cid:374)ess, period of ownership, nature of the transaction. Business income treatment: difficult to establish that the ownership of such property was of a capital nature, 1. Acquired and used to provide a long-term benefit now converted into inventory and held for the purpose of resale. Acquired as inventory for resale not sold, converted to capital property & used to produce income. Sale is business in nature until converted: 2. The act permits a taxpayer to elect to have all sales of canadian securities treated as capital transactions: 2. Canadian securities: choosing this election ensures capital treatment,
