CRA indicates that it would not reassess a prior return to apply the cost recovery method to a share sale earnout

A taxpayer sold shares under an earnout. Although he could have used the cost recovery method, he instead reported a gain based on his best estimate of the future proceeds.  He now considers this estimate to be faulty and wants to amend his return to use the cost recovery method.

CRA indicated that it would not reassess the return as a change in estimate is not an error.

Neal Armstrong. Summary of 27 August 2014 T.I. 2014-0529221E5 F under s. 12(1)(g).