Search - consideration

The value of the consideration must be calculated before the tax payable can be determined. ... The consideration would be calculated as: Consideration = $325,000 ÷ 1.122 = $289,661.32 Once the consideration is determined the tax payable and the new housing rebate may be calculated. ... The consideration would be calculated as: Consideration = ($460,000 + $28,350) ÷ 1.203 = $405,943.48 Once the consideration is determined the tax payable and the new housing rebate may be calculated. ...

A separate formula is used to calculate the consideration within each of two price ranges. ... The consideration will be calculated as follows: Consideration = $370,000 ÷ 1.132 = $326,855.12 Once the consideration is determined the tax payable and the new housing rebate may be calculated. ... The consideration will be calculated as follows: Consideration = ($500,000 + $28,350) ÷ 1.213 = $435,572.96 Once the consideration is determined the tax payable and the new housing rebate may be calculated. ...

These considerations are discussed in Section 19.3.8, New Housing Rebates and the HST. ... Less than $450,000 (c) total consideration paid to the builder for the unit is less than $450,000, before tax; (For information on items to include or exclude when computing total consideration, see paragraphs 8 to 12.) ... Total consideration Limit paragraph 254(2)(c) 8. For a GST/HST new housing rebate to be paid under section 254, “total consideration” for a qualifying unit must be less than $450,000. ...

These considerations are discussed in Section 19.3.8, New Housing Rebates and the HST. ... Less than $450,000 (c) total consideration paid to the builder for the unit is less than $450,000, before tax; (For information on items to include or exclude when computing total consideration, see paragraphs 8 to 12.) ... Total consideration Limit paragraph 254(2)(c) 8. For a GST/HST new housing rebate to be paid under section 254, “total consideration” for a qualifying unit must be less than $450,000. ...

A separate formula is used to calculate the consideration within two price ranges. ... The consideration is calculated as follows: Consideration = $650,000 ÷ 1.07 = $607,476.64 Once the consideration is determined, the tax payable and the new housing rebate may be calculated. ... The consideration is calculated as follows: Consideration = ($950,000 + $42,500) ÷ 1.12 = $886,160.71 Once the consideration is determined, the tax payable and the new housing rebate may be calculated. ...

It is a general administrative practice of the CRA for another CRA official to review a request and prepare a decision report for the delegated official's consideration, including a recommendation on whether or not granting relief is justified. ... They do not give the minister's delegate the authority to deny a request and exclude it from proper consideration simply because the taxpayer's circumstances do not meet a guideline described in Part II of this information circular. ... During the second review, the taxpayer will have the opportunity to make additional representations for the CRA's consideration. 104. ...

It is a general administrative practice of the CRA for another CRA official to review a request and prepare a decision report for the delegated official's consideration, including a recommendation on whether or not granting relief is justified. ... They do not give the minister's delegate the authority to deny a request and exclude it from proper consideration simply because the taxpayer's circumstances do not meet a guideline described in Part II of this information circular. ... During the second review, the taxpayer will have the opportunity to make additional representations for the CRA's consideration. 104. ...

Total consideration Items to include or exclude from total consideration 6. ... Items to include or exclude from total consideration are discussed in Section 19.3.1, Rebate For Builder-Built Unit (Land Purchased). ... Rebate s 254.1 Calculating the Rebate (Building Purchased/Land Leased) where the rebate does not form part of value of consideration for the building: Fair market value of land, building, and related structures: $374,500 or less Rebate Calculation: 2.34% of the total consideration for the building and related structures to a maximum of $8,750 Example Footnote 4 Assume that total consideration for the building and related structures is $90,000. ...

Total consideration Items to include or exclude from total consideration 6. ... Items to include or exclude from total consideration are discussed in Section 19.3.1, Rebate For Builder-Built Unit (Land Purchased). ... Rebate s 254.1 Calculating the Rebate (Building Purchased/Land Leased) where the rebate does not form part of value of consideration for the building: Fair market value of land, building, and related structures: $374,500 or less Rebate Calculation: 2.34% of the total consideration for the building and related structures to a maximum of $8,750 Example Footnote 4 Assume that total consideration for the building and related structures is $90,000. ...

Table of contents 1.0 Purpose 2.0 Overview 3.0 Expenditures and recapture – Quick reference 4.0 Legislation – Conditions to apply the recapture rules 4.1 Conditions under which a claimant will report a recapture 4.2 A recapture in respect of a transfer of qualified expenditures under subsection 127(13) 5.0 Definitions 5.1 Cost 5.2 Property 5.3 Corporeal and incorporeal property 5.3.1 Example – Acquisition of intellectual property 5.4 Disposition 5.5 Proceeds of disposition 6.0 No recapture 6.1 No recapture on salaries or overhead 6.1.1 Example – No recapture on salaries or overhead 6.2 De minimis rule 6.2.1 Example – No recapture on scrap sales / de minimis rule 6.3 Non-arm's length disposition of equipment 7.0 Factors affecting the SR&ED investment tax credit recapture 7.1 Purchase of SR&ED components 7.1.1 Example – Purchase of SR&ED components 7.2 Items in inventory 7.2.1 Example – Items in inventory 7.3 All or substantially all equipment for SR&ED purposes 7.4 Conversion to commercial use 7.5 Disposition or conversion to commercial use of "another property that incorporates the property" 7.6 Property acquired through a contract involving SR&ED and other work 8.0 SR&ED investment tax credit recapture rules – Corporations and individuals 8.1 Calculation of a recapture amount – Corporations and individuals 8.2 Effect of recapture – Corporations and individuals 8.3 The SR&ED investment tax credit rate of recapture – Corporations and individuals 9.0 Recapture on transferred qualified expenditures 9.1 Calculation of recapture amount on transferred qualified expenditures 9.2 Timing considerations 9.2.1 Example – Timing considerations 10.0 Partnerships 10.1 Calculation of a recapture amount – Partnerships 10.2 Effect of recapture – Partnerships 11.0 Recycled materials 12.0 Forms 13.0 Examples 13.1 Calculation of a recapture amount for a corporation or individual using the proceeds of disposition amount 13.2 Calculation of a recapture amount for a corporation or individual using the fair market value amount 13.3 Determining the notional UCC to estimate the fair market value of a capital property 13.4 Calculation of recapture on transferred qualified expenditures where only a portion of the qualified expenditures were transferred 13.5 Calculation of recapture on transferred qualified expenditures where all of the qualified expenditures were transferred 13.6 Calculation of recapture on transferred qualified expenditures where only a portion of the qualified expenditures were transferred 13.7 Calculation of a recapture amount for a corporation or individual on conversion to commercial use when the fair market value is less than the qualified expenditure in respect of the property Appendix A – References A.1 Legislative references Appendix B – Revisions B.1 Explanation of changes 1.0 Purpose The purpose of this document is to clarify the position of the Canada Revenue Agency (CRA) regarding the recapture of scientific research and experimental development (SR&ED) investment tax credits (ITCs) when administering the SR&ED legislation under the federal Income Tax Act and the Income Tax Regulations. 2.0 Overview At the outset of an SR&ED project, a performer may not know whether the materials used in the project will be consumed or transformed, or whether the project will result in a product that has some value to the performer or someone else. ... Legislative references Income Tax Act Subsection 127(13) Agreement to transfer qualified expenditures Subsection 127(29) Recapture of investment tax credit of allocating taxpayer 9.2 Timing considerations If the performer and the payer have different tax year-ends, timing problems may arise for the purposes of the ITC recapture rules. ... Legislative references Income Tax Act Subsection 127(13) Agreement to transfer qualified expenditures Subsection 127(29) Recapture of investment tax credit of allocating taxpayer 9.2.1 Example – Timing considerations Corporation A (the payer) enters into a contract with Corporation B (the performer) to do SR&ED on its behalf. ...