Principal Issues: The taxpayer is a XXXXXXXXXX licenced in the province of British Columbia and has a professional corporation Dr. A. Inc. He is the sole shareholder of XXXXXXXXXX which owns and operates a farming business. XXXXXXXXXX
Will the shares of XXXXXXXXXX qualify as qualified small business corporation shares and will the taxpayer be eligible to claim the $500,000 capital gains exemption on the capital gains realized on the disposition of the shares? Can the taxpayer claim all of the capital gains exemption resulting from the shares of XXXXXXXXXX for the XXXXXXXXXX taxation year even though he will be receiving payments for the sale of the shares over XXXXXXXXXX years. If after the sale of shares of XXXXXXXXXX , the loans to XXXXXXXXXX are declared to be defunct by the investor, can the taxpayer and Dr. A Inc. claim allowable business investment losses?
Position: Question of fact. General comments given.
Reasons: See 9805845, 9521185, 9613885, 9513305, 9510015, 9225255, 9004363, 9819816, 9502255, 9522580, 9809947, 9640437, 9802347, 9529667, 9726496, 9317905,