Search - "Contribution of Property"

Principal Issues: tax consequences arising from a contribution of property to a joint venture by a venturer who reports income on the cash basis Position: no gain or loss is recognized at the time of contribution unless the joint venture is in fact a partnership Reasons: a joint venture is not recognized as a separate person for tax purposes CICA handbook recommends proportionate consolidation method, with adjustments to account for differences between cost to venturer and the value used for determining the increased interest. ...

Based on our limited understanding of the facts in the above-noted situation, although the cash used to fund Spouse A’s initial share investment in Opco and to make the loan to Opco was stated to be from cash that came from a joint account in the name of Spouse A and Spouse B, the legal form of these transactions strongly suggests that Spouse B has not made any direct or indirect contribution of property to Opco. ...

For the purposes of our reply we will assume that the legal structure established by the above contribution of property is a partnership, although we note that it is a question of fact in each case whether a partnership exists. ...

Contribution of Property to Spinco 139. DC will contribute all of its partnership interests in CanLP 5, CanLP 8 and CanGP 1, and all of its shares of Cansub 1, Cansub 4 and Cansub 5 to Spinco for consideration of Spinco Common Shares, having an aggregate FMV at that time equal to the aggregate FMV at that time of the property transferred by DC to Spinco (the DC Contribution). ... The purpose of the transactions described in Paragraphs 139 to 141 (“Contribution of Property to Spinco”) is to package the Canadian Spin Business into one holding company and is intended to simplify the TC corporate group. 227. ...

The trustee is instructed to invest the contribution in property in which a trustee in Ontario is permitted to invest and to pay the net income from such investment to the donor. ...

Paragraph (b) applies if at any time before the end of the taxation year, a contribution of property to the trust occurs which is not a contribution by an individual on or after that individual’s death and as a consequence thereof. ...

The trustee is instructed to invest the contribution in property in which a trustee in Ontario is permitted to invest and to pay the net income from such investment to the donor.  ...

The trustee is instructed to invest the contribution in property in which a trustee in Ontario is permitted to invest and to pay the net income from such investment to the donor. ...

Note however, that we have previously opined that it is a question of fact as to whether a particular payment would result in a contribution to the trust for purposes of the definition of a testamentary trust in subsection 108(1) of the Act and it is our view that a contribution of property to a trust generally implies that the trust receives the property without any value being given to the contributor. ...

(b) "Share" means a membership interest in LLC 3; (c) "Stockholder" means each person signing the LLC 3 Agreement and any person who subsequently obtains a Share in LLC 3, in each case in its capacity as a Stockholder of LLC 3; (d) "Capital" of Shares is the aggregate of all amounts paid to LLC 3 and the monetary value at the time of contribution of property contributed to LLC 3 (in each case including amounts paid or contributed prior to USco 3's conversion to LLC 3) in consideration for the issuance of Shares together with any amounts added thereto by the Board of Managers or the Stockholders in accordance with the provisions of the LLC 3 Agreement, less the aggregate of all amounts by which such capital has been reduced by the Stockholders or the Board of Managers in accordance with the LLC 3 Agreement. ... (b) "Share" means a limited liability company interest in LLC 2; (c) "Stockholder" means each person signing the LLC 2 Agreement and any person who subsequently obtains Shares in LLC 2, in each case in its capacity as a Stockholder of LLC 2; (d) "Capital" of Shares is the aggregate of all amounts paid to LLC 2 and the monetary value at the time of contribution of property contributed to LLC 2 (in each case including amounts paid or contributed prior to USco 2's conversion to LLC 2) in consideration for the issuance of Shares together with any amounts added thereto by the Board of Managers or the Stockholders in accordance with the provisions of the LLC 2 Agreement, less the aggregate of all amounts by which such capital has been reduced by the Stockholders or the Board of Managers in accordance with the LLC 2 Agreement. ...