Search - "Contribution of Property"

[Footnotes omitted.] [34]          In paragraph 14 of her factum, counsel for the respondent suggests the following: [TRANSLATION] In the absence of any entry in the share ledger or of valid share certificates, the respondent submits that the appellant and Gaston Dionne are the only true shareholders and that they each hold 50 percent of the payer's shares, which were issued in consideration of their contribution of property resulting from the rollover of the partnership's assets into the company. [35]          I cannot see under which legal rule the respondent can infer that the appellant and Mr. ... The contribution of property to the payer by a shareholder or future shareholder does not automatically determine the percentage of shares. ...

Deputy Attorney General of Canada                                                           Ottawa, Canada [1] The Partnership reported nominal net income of $233.00 for the fiscal period ending May 31, 1997, which did not factor into the calculation of the ACB of the Appellant’s partnership interest. [1] Subsection 97(1) reads: 97. (1) Contribution of property to partnership-- Where at any time after 1971 a partnership has acquired property from a taxpayer who was, immediately after that time, a member of the partnership, the partnership shall be deemed to have acquired the property at an amount equal to its fair market value at that time and the taxpayer shall be deemed to have disposed of the property for proceeds equal to that fair market value. [2] Eddy, L.A. ...

Because the Trust received a contribution of property from a Canadian resident (Mrs. ...

SCHEDULE A 97. (1) Contribution of property to partnership- Where at any time after 1971 a partnership has acquired property from a taxpayer who was, immediately after that time, a member of the partnership, the partnership shall be deemed to have acquired the property at an amount equal to its fair market value at that time and the taxpayer shall be deemed to have disposed of the property for proceeds equal to that fair market value. (2) Rules where election by partners- Notwithstanding any other provision of this Act, other than subsection 85(5.1), where at any time after November 12, 1981 a taxpayer has disposed of any capital property, a Canadian resource property, a foreign resource property, an eligible capital property or an inventory to a partnership that immediately after that time was a Canadian partnership of which the taxpayer was a member, if the taxpayer and all the other members of the partnership have jointly so elected in prescribed form and within the time referred to in subsection 96(4), the following rules apply: (a) the provisions of paragraphs 85(1)(a) to (f) apply to the disposition as if (i) the reference therein to "corporation's cost" were read as a reference to "partnership's cost", (ii) the references therein to "other than any shares of the capital stock of the corporation or a right to receive any such shares" and to "other than shares of the capital stock of the corporation or a right to receive any such shares" were read as references to "other than an interest in the partnership", (iii) the references therein to "shareholder of the corporation" were read as references to "member of the partnership", (iv) the references therein to "the corporation" were read as references to "all the other members of the partnership", and (v) the references therein to "to the corporation" were read as references to "to the partnership"; (b) in computing, at any time after the disposition, the adjusted cost base to the taxpayer of the taxpayer's interest in the partnership immediately after the disposition, (i) there shall be added the amount, if any, by which the taxpayer's proceeds of disposition of the property exceed the fair market value, at the time of the disposition, of the consideration (other than an interest in the partnership) received by the taxpayer for the property, and (ii) there shall be deducted the amount, if any, by which the fair market value, at the time of the disposition, of the consideration (other than an interest in the partnership) received by the taxpayer for the property so disposed of by the taxpayer exceeds the fair market value of the property at the time of the disposition; and (c) where the property so disposed of by the taxpayer to the partnership is taxable Canadian property of the taxpayer, the interest in the partnership received by the taxpayer as consideration therefor shall be deemed to be taxable Canadian property of the taxpayer. (3) Where property acquired from majority interest partner- Where, at any time after November 12, 1981, a taxpayer has disposed of any capital property to a partnership and, immediately after the disposition, the taxpayer was a majority interest partner of the partnership and, but for this subsection, the taxpayer would have had a capital loss therefrom, the following rules apply: (a) notwithstanding any other provision of this Act, the taxpayer's capital loss therefrom shall be deemed to be nil; and (b) except where the property so disposed of was, immediately after the disposition, an obligation that was payable to the partnership by a corporation that is related to the taxpayer or by a corporation or partnership that would be related to the taxpayer if paragraph 80(2)(j) applied for the purposes of this paragraph, in computing at any time after the disposition the adjusted cost base to the taxpayer of the taxpayer's interest in the partnership immediately after the disposition, there shall be added the amount, if any, by which (i) the cost amount to the taxpayer, immediately before the disposition, of the property exceeds (ii) the taxpayer's proceeds of disposition of the property. (3.1) Deemed majority interest partner- For the purposes of subsection (3), a taxpayer shall be deemed to be a majority interest partner of a partnership at any time if (a) the total of the taxpayer's share, the share of the taxpayer's spouse and the share of a person or group of persons that, directly or indirectly in any manner whatever, controlled or was controlled by the taxpayer, of the income of the partnership from any source for the fiscal period of the partnership that includes that time exceeds ½ of the income of the partnership from the source for that period; or (b) the total of the taxpayer's share, the share of the taxpayer's spouse and the share of a person or group of persons that, directly or indirectly in any manner whatever, controlled or was controlled by the taxpayer, of the total amount that would be paid to all members of the partnership (otherwise than as the share of any income of the partnership) if it were wound up at that time exceeds ½ of that amount. (4) Where capital cost to partner exceeds proceeds of disposition- Where subsection (2) has been applicable in respect of the acquisition of any depreciable property by a partnership from a taxpayer who was, immediately after the taxpayer disposed of the property, a member of the partnership and the capital cost to the taxpayer of the property exceeds the taxpayer's proceeds of the disposition, for the purposes of sections 13 and 20 and any regulations made under paragraph 20(1)(a) (a) the capital cost to the partnership of the property shall be deemed to be the amount that was the capital cost thereof to the taxpayer; and (b) the excess shall be deemed to have been allowed to the partnership in respect of the property under regulations made under paragraph 20(1)(a) in computing income for taxation years before the acquisition by the partnership of the property. ...