Search - consideration

Conveyance of interest in property for specified period usually in consideration of rent, a "lessee" as one who rents property from another. ... One who has use and occupation of real property of a landlord... the terms of this tenancy being fixed by a "lease", and "rent" as consideration paid for use or occupation of any property, land, buildings, equipment, etc. ... On the basis of the above dictionary definitions a lease arrangement, for the purposes of the definition of "approved project property", could be considered, in our view, to include an arrangement between a landlord and a tenant which results in the use of real property for a specified period of time for consideration that is rent. 3. ...

Furthermore, even if the debt had been disposed of, subparagraph 40(2)(g)(ii) would deem the capital loss to be nil because the debt was not laid out for the purpose of earning income from business or property nor was it part of the consideration in the disposition of property. ... In our view, the Department would not be justified in determining the capital gains on this disposition without consideration to the repayment of the debt by the Taxpayers. ... Based on the above, in our opinion, the repayment of the loans should be taken into consideration in the calculation of the capital gain on the Taxpayers' disposition of the shares. ...

The vendor's representative, XXX if of the view that the proceeds of disposition on the sale of the property for the purposes of section 116 of the Act include the consideration represented by the purchaser's assumption of the take-or-pay obligation, and that the deduction available to the vendor pursuant to subsection 20(24) of the Act may be deducted in the computation of the proceeds of disposition of the property in determining the taxes payable as described in paragraph 116(5.2)(a) of the Act. ... In both cases, the cash consideration would be $175, although, in both cases, the total paid for the property would be $200. ... So far, our views coincide with XXX as, incidentally, both do with David Ross, a tax lawyer specializing in oil and gas matters, on page 7 of his article "Tax Considerations Relevant to the Purchase of Assets and the Purchase of Shares" in the Canadian Petroleum Tax Journal, Vol. 1, No. 1. ...

As consideration, the individual will receive preferred shares of the corporation having a stated capital and aggregate redemption amount of $10 and the balance of the consideration will be in the form of a promissory note having a principal amount equal to the difference between the fair market value of the eligible capital property and the redemption amount of the preferred shares. ... In a situation where a taxpayer elects to transfer an eligible capital property to a corporation at its fair market value pursuant to the provisions of subsection 85(1) of the Act in exchange for shares and debt consideration having a principal amount and a fair market value equal to the amount by which the cost of such property to the corporation (i.e. its fair market value) exceeds the paid-up capital of the shares of the corporation issued as a result of the transfer, we are of the view that the provisions of subsection 85(2.1) of the Act would not apply to reduce the paid-up capital of the shares. ...

A transfers his beneficial interest in the real estate he owns to A Corp and as sole consideration therefor receives redeemable and retractable special shares having an aggregate fair market value and redemption amount of $100. ... B transfers his beneficial interest in the real estate he owns to B Corp and as sole consideration therefor receives redeemable and retractable special shares having an aggregate fair market value and redemption amount of $100. ... It is your view that paragraph 85(1)(e.2), as amended under the Draft Amendments to the Income Tax Act and Related Statues issued by the Minister of Finance on July 13, 1990, would not apply to the transfers of the real estate by the individuals to their respective corporation even though the respective consideration that is received by them has an aggregate fair market value less than the fair market value of the transferred property. ...

A transfers his beneficial interest in the real estate he owns to A Corp and as sole consideration therefor receives redeemable and retractable special shares having an aggregate fair market value and redemption amount of $100. ... B transfers his beneficial interest in the real estate he owns to B Corp and as sole consideration therefor receives redeemable and retractable special shares having an aggregate fair market value and redemption amount of $100. ... It is your view that paragraph 85(1)(e.2), as amended under the Draft Amendments to the Income Tax Act and Related Statues issued by the Minister of Finance on July 13, 1990, would not apply to the transfers of the real estate by the individuals to their respective corporation even though the respective consideration that is received by them has an aggregate fair market value less than the fair market value of the transferred property. ...

Quoiqu'elle soit un facteur important, la superficie d'un élément d'actif utilisé directement dans une entreprise active n'est pas le seul critère devant être pris en considération.  Par exemple, la juste valeur marchande de la partie de l'élément d'actif qui est utilisée dans l'entreprise exploitée activement pourrait également être prise en considération. Dans une situation comme celle que vous nous avez présentée où nous sommes en présence d'un bien détenu en copropriété indivise, nous sommes d'avis qu'il faille prendre en considération le fait que chaque copropriétaire détient une part indivise dans chaque partie de l'immeuble.  ...

In other words, the amount or value of the benefit conferred where corporate owned property is made available to a shareholder would generally be considered to be equal to the fair market rental of that property less any consideration paid by that shareholder with regard to the property. As noted in that response, however, where this approach is not appropriate for measuring the value of the benefit, e.g., if it does not provide a reasonable return on the cost or value of the property, the benefit would generally be determined with reference to a normal rate of return on the greater of the cost or fair market value of the property, plus the related operating costs but reduced, as above, by any consideration paid by that shareholder with regard to the property. ... This response was given in the specific context of residential real property located in the U.S. which is held by a Canadian corporation for the occupancy of its shareholder and indicated that a benefit otherwise arising (where the fair market rental of the property exceeded the consideration paid by the shareholder) would not normally be assessed provided all the conditions given therein were satisfied. ...

In any event, we can again assure you that the practice of the Rulings Directorate has been consistent with respect to the application of subsection 55(2) to those transactions on which a corporation transfers property to an arm's length party in consideration for shares which are subsequently redeemed. ... The proposed subsection provided that a corporation which received a taxable dividend in respect of a share which was received as consideration for property transferred under section 85 was required to treat the entire dividend as a gain from the disposition of a capital property. ... Since the subsection referred to a reduction in a capital gain that would have been realized on the disposition of any share, it included a capital gain inherent in a share issued as consideration for an asset acquired in an arm's length transaction which was subject to a section 85 transaction. ...

" IT-113R2, paragraph 2 states that, "Section 7 applies where an employing corporation agrees to sell or issue to an employee its own shares or to sell or have issued those of a corporation with which it does not deal at arm's length, at less than fair market value or for no monetary consideration. In this case the bonus was shares of the parent given to the employees for no consideration. ... In this regard a number of points were covered which are briefly set out here for your consideration. 1. ...