RSM324H1 Chapter 8: CHAPTER 8-4
15 Feb 2017
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Chapter 8 gains and losses on the disposition of capital property capital gains. Identical properties: several properties of an identical nature are acquired over a period of time and at different costs. Instead, the acb of the old security becomes the cost base of the new security, and a gain or loss is recognized when the new security is eventually sold. If, at a subsequent time, the payer exercises the option and purchases the property, the cost of the option is added to the acb of the property acquired. Commodities and futures transactions: commodities and commodity futures cannot be classified as capital property because no long-term or enduring benefit can result from their acquisition. This option is not permitted for taxpayers who are associated with the commodity business or who are taking commodity positions as part of their normal business or trade. E. g. , farmers who grow wheat must treat commodity transactions in wheat as part of their business income.
