Search - consideration

In such cases, there would be dispositions of the property for proceeds equal to the fair market value of the consideration received. It is necessary to distinguish property "settled" on the trust for nil proceeds from property sold to a trust in return for valuable consideration." ... In your opinion, paragraph 54(c)(v) of the Act can be applicable to a transfer to a trust whether or not there is consideration. ...

Shares transferred to spouse for no consideration. No 74.5(1) election. ... Shares have been disposed of and no consideration received. 2. Depends on fair market value of shares at time of disposition. ... When the property is disposed of for consideration which is less than the fair market value of the property, the excess of the amount of the borrowed money over the fair market value of the property at the time of disposition will be deemed to be used for the purpose of earning income and, consequently, the interest expense on that excess amount will continue to be deductible pursuant to paragraph 20(1)(c) of the Act. ...

Ce même jour, votre client et son épouse ont signé une convention aux termes de laquelle votre client stipule qu'il reconnaît devoir à son épouse la somme de XXXXXXXXXX en considération de la renonciation de cette dernière au partage du patrimoine familial et en guise également de paiement de la prestation compensatoire due, vu la collaboration de l'épouse de votre client à l'exploitation de la ferme. Votre question Vous vous demandez si le Ministère entend appliquer les dispositions du paragraphe 74.1(1) de la Loi de l'impôtsur le revenu (la "Loi") aux paiements faits en acquittement d'une prestation compensatoire ou au paiement fait en considération de la renonciation du conjoint au partage du patrimoine familial. Votre position Vous êtes d'avis qu'un paiement versé en considération de la renonciation au patrimoine familial est sujet aux règles d'attribution et qu'ainsi le revenu découlant d'un tel paiement serait considéré comme un revenu du payeur. ...

As consideration, A receives an interest-bearing demand promissory note (the “Note”). 4. ... The consideration for the transfer is the assumption of the Note by Holdco. ... Also, no consideration has been given to provisions of the Act other than those referred to above. ...

The consideration need not necessarily be in cash. It is not uncommon for the use of automobiles to be provided in exchange for non-cash consideration such as goods, services or certain rights and privileges; in short, what is commonly known as a barter transaction. ... While the precise value of the consideration may be difficult to determine, in an arm's length arrangement it should equal the value provided by the other party. ... Once the reasonable standby charge is established then the provisions of paragraph 6(1)(k) of the Act is a consideration. ...

CRA takes the view that an agreement to sell or issue shares as contemplated under section 7 of the Act, includes an agreement to sell or issue securities where there is no cash consideration payable by the employee in respect to the acquisition of the securities. Accordingly, in our view, the provisions of section 7 apply to an agreement under which an employer agrees, subject to any vesting requirements, to provide a share to an employee for no cash consideration. ... In this respect, paragraph 7(1.4)(b) of the Act provides that the employee cannot receive any consideration other than rights to acquire securities and paragraph 7(1.4)(c) ensures that no economic advantage or net benefit can be acquired through an improvement in the rights received in the new agreement as consideration. ...

A short term preferred share of a corporation under paragraph 248(1)(b) of the definition of short term preferred share (subject to certain exceptions): b) is a share that is convertible or exchangeable at any time within 5 years after the date of its issue, unless (i) it is convertible into or exchangeable for (A) another share of the corporation or a corporation related to the corporation that, if issued, would not be a short-term preferred share, (B) a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the corporation or a corporation related to the corporation that, if issued, would not be a short-term preferred share, or (C) both a share described in clause (A) and a right or warrant described in clause (B), and (ii) all the consideration receivable for the share on the conversion or exchange is the share described in clause (i)(A) or the right or warrant described in clause (i)(B) or both, as the case may be, and for the purposes of this subparagraph, where a taxpayer may become entitled on the conversion or exchange of a share to receive any particular consideration (other than consideration described in any of clauses (i)(A) to (C)) in lieu of a fraction of a share, the particular consideration shall be deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of Part IV.1 or VI.1, (our emphasis added) Subsection 27(5) of the Interpretation Act (Canada) R.S., c. ...

Reasons: (1) The services performed under a contract generally give rise to an inflow of cash, receivables or other consideration in the qualifying period. (2) Unrealized gains/losses arising from mark-to-market valuation adjustment to investments do not give rise to an inflow of cash, receivables or other consideration. ... Moreover, the services performed under the contract by an entity typically give rise to an inflow of cash, receivables or other consideration over the term of the service contract. ... However, in our view, the mark-to-market valuation adjustment to the carrying value of the investment does not give rise to an “inflow of cash, receivables or other consideration”. ...

Should you wish an in-depth consideration of the proposed transactions referred to in your letter, your request should follow the format set out in Information Circular 70-6R2 for requesting advance income tax rulings.  ... For example, a tax deferred basis may involve a situation in which A Co. transfers an asset to B Co. with which it does not deal at arm's length, receiving as consideration preferred shares, and both file elections under subsection 85(1).  ... The comments set out in this letter are of a general nature and do not take into account the numerous additional considerations that might arise in the context of specific fact situations.  ...

3 November 2010 External T.I. 2010-0383481E5- Principal Residence Exemption Unedited CRA Tags 40(2)(b), 248(1) Principal Issues: What are the income tax consequences when a parent transfers for estate planning purposes partial ownership of a principal residence to an adult child for no consideration? ... XXXXXXXXXX James Kerr 2010-038348 November 3, 2010 Dear XXXXXXXXXX: RE: Principal Residence Exemption I am writing in reply to your email dated October 12, 2010 enquiring about the income tax consequences when a parent transfers for estate planning purposes partial ownership of a principal residence to an adult child for no consideration. ... You seemed to be concerned with whether there is a disposition if no consideration were to be paid and where the adult child continues to reside in the principal residence. ...