Search - consideration

The minimum amount of consideration should in no case be less than the "cost amount", as defined in subsection 248(1) of the Act, of the transferred property. ... The appropriate minimum amount of consideration can only be determined after a review of all the relevant facts. ... Therefore, it would be prudent for taxpayers to apply for an advance income tax ruling where a transfer for consideration in an amount less than the fair market value of the property to be transferred is contemplated. ...

Reasons: Paragraph 85(1)(f) refers to the consideration received other than shares of a transferee corporation or interest in a transferee partnership. ... With respect to the ACB of the consideration (other than a partnership interest) received, the elected amount is allocated first to any such property. In the scenario presented above, since only one property (the Note) was received as consideration, paragraph 85(1)(f) of the Act provides that the cost to the transferor of the note received as consideration is deemed to be the lesser of: (i) the FMV of the note, and (ii) the FMV of the property disposed of to the partnership. ...

Where property is transferred from one corporation (the "transferor") to another corporation (the "purchaser") the consideration that should normally be received by the transferor is the fair market value of the property transferred. ... The Department will not accept a situation where the consideration received by the transferor is less than the cost amount of the assets transferred and may, in certain situations, insist on consideration in excess of the cost amount of the assets transferred. The minimum amount of consideration that would be acceptable to the Department in a particular situation cannot be determined without having all the relevant facts. ...

The transfer was done for fair market value consideration subject to a standard price adjustment clause. 3. ... The consideration received on the transfer consisted of XXX common shares of XXX Ltd. ... In our view, from the information provided to us, the only consideration received by Mr. ...

You questioned whether on page 2 of the form, share consideration received by the vendor should be detailed under the heading "Consideration Received". It is our understanding that share consideration should be detailed on both page 1 in the area entitled "Description of Shares Received" and on page 2 under the title "Consideration Received". ...

Principal Issues: Whether or not certain dispositions of property to a registered charity for some consideration can result in a gift. ... As previously determined, the assumption of a mortgage by the recipient of the property is consideration Mr. ... The proceeds from the sale of shares for an amount equal to the shares' adjusted cost base in your first situation would constitute valuable consideration. ...

Bonus consideration payments are a disposition of a Canadian Resource Property. ... Income Tax Convention, a bonus consideration payment will be considered to be an exempt gain on disposition of a capital asset. ... Payments of the consideration for a petroleum and natural gas lease, as described in points 3 and 4 of your memorandum, should be treated in the same way as payments of bonus consideration as described in 1 above. 5. ...

There must be an acquisition of shares to which 84(2) or 84(3) was not applicable, 2. consideration must exceed PUC, and 3. one of the main purposes was to enable individual shareholders to realize a distribution of corporate surplus as proceeds of disposition. ... XXX In our view most internal reorganizations which eliminate the "incestuous" shares will clearly result in the consideration being provided by the acquiring corporation. ... As there was never an intention to liquidate, there was never an intention to provide the consideration, and therefore the purpose was not to enable shareholders to realize a distribution of corporate surplus as proceeds of disposition. ...

If the transfer property was acquired before January 1, 1972, the consideration should equal the V-Day value of the transfer property. ... Is the assumption of a liability on purchase of livestock inventory included in non-share consideration? ... A taxpayer has a prior year restricted farm loss carry-forward and, using a subsection 85(1) election, he takes back a promissory note as non-share consideration equal to the losses. ...

Bonus consideration payments are a disposition of a Canadian Resource Property. ... Income Tax Convention, a bonus consideration payment will be considered to be an exempt gain on disposition of a capital asset. ... Payments of the consideration for a petroleum and natural gas lease, as described in points 3 and 4 of your memorandum, should be treated in the same way as payments of bonus consideration as described in 1 above. 5. ...