Search - consideration

At the direction of X, Xco sells a piece of land for consideration that is less than fair market value in favour of Y, the child of X. ... Finally, the adjusted cost base of the piece of land to Y would, technically, be equal to the consideration he or she paid to Xco. See the current version of IT-405, Inadequate Considerations – Acquisitions and Dispositions, for additional discussions on the application of subsection 69(1). ...

For example, when a corporation, for no consideration, grants on only some of its common shareholders, rights to purchase any additional shares of the corporation's capital stock, subsection 15(1) applies to those shareholders. ... Subsection 49(2) does not, however, apply in the case of an option to acquire shares of a corporation's capital stock in consideration for the option holder incurring expenses pursuant to an agreement described in: paragraph (e) of the definition of "Canadian exploration and development expenses" in subsection 66(15); paragraph (i) of the definition "Canadian exploration expense" in subsection 66.1(6); paragraph (g) of the definition "Canadian development expense" in subsection 66.2(5); or paragraph (c) of the definition "Canadian oil and gas property expense" in subsection 66.4(5). ... The cost of an option to a holder is the consideration that the holder pays to the grantor for the option, plus applicable expenses. ...

For example, when a corporation, for no consideration, grants on only some of its common shareholders, rights to purchase any additional shares of the corporation's capital stock, subsection 15(1) applies to those shareholders. ... Subsection 49(2) does not, however, apply in the case of an option to acquire shares of a corporation's capital stock in consideration for the option holder incurring expenses pursuant to an agreement described in: paragraph (e) of the definition of "Canadian exploration and development expenses" in subsection 66(15); paragraph (i) of the definition "Canadian exploration expense" in subsection 66.1(6); paragraph (g) of the definition "Canadian development expense" in subsection 66.2(5); or paragraph (c) of the definition "Canadian oil and gas property expense" in subsection 66.4(5). ... The cost of an option to a holder is the consideration that the holder pays to the grantor for the option, plus applicable expenses. ...

For example, when a corporation, for no consideration, grants on only some of its common shareholders, rights to purchase any additional shares of the corporation's capital stock, subsection 15(1) applies to those shareholders. ... Subsection 49(2) does not, however, apply in the case of an option to acquire shares of a corporation's capital stock in consideration for the option holder incurring expenses pursuant to an agreement described in: paragraph (e) of the definition of "Canadian exploration and development expenses" in subsection 66(15); paragraph (i) of the definition "Canadian exploration expense" in subsection 66.1(6); paragraph (g) of the definition "Canadian development expense" in subsection 66.2(5); or paragraph (c) of the definition "Canadian oil and gas property expense" in subsection 66.4(5). ... The cost of an option to a holder is the consideration that the holder pays to the grantor for the option, plus applicable expenses. ...

A person that is a specified member of a "qualifying group" may jointly elect with another specified member of the group to treat certain taxable supplies made between them, while the election is in effect, as having been made for no consideration. ... Parties to an existing election with an effective date before January 1, 2015 that is still in effect on January 1, 2015, will also be required to file Form RC4616 to treat certain supplies made between them after 2014 as having been deemed to be made for nil consideration. ... Example 1: Corporation X and Corporation Y are specified members of the same qualifying group and they make an election under subsection 156(2) to deem certain taxable supplies made between them as having been made for no consideration effective January 1, 2015. ...

Subsection 50(1) deems a taxpayer to have disposed of a debt or a share of a corporation at the end of a taxation year for nil proceeds and to have reacquired it immediately thereafter at a cost of nil if: in the case of a debt (other than a debt from the sale of personal use property), the debt is owing to the taxpayer at the end of the taxation year and it is established by the taxpayer to have become a bad debt in the year; and in the case of a share (other than a share received as consideration from the sale of personal use property), the taxpayer owns the share of the corporation at the end of the taxation year and the corporation: has become a bankrupt (as defined by the Bankruptcy and Insolvency Act) in the year; is a corporation referred to in section 6 of the Winding-up Act that was insolvent (within the meaning of that Act) and for which a winding-up order under that Act was made in the year; or at the end of the year, is insolvent, and neither the corporation, nor a corporation it controls, carries on business. ... A taxpayer may also be entitled to claim a capital loss if the taxpayer suffers a loss as a result of honouring a guarantee of the debts of certain corporations or from loaning money in the circumstances outlined in paragraph 6 of IT-239R2, Deductibility of Capital Losses From Guaranteeing Loans for Inadequate Consideration and From Loaning Funds at Less Than a Reasonable Rate of Interest in Non-Arm's Length Circumstances. ...

Split-receipting definitions 1 Amount of advantage- The total of the fair market value of all consideration (right, privilege, material advantage) provided for the property transferred. ... If a donor is provided with an article (advantage) in consideration for a pledge to make donations over a number of years, how would one calculate the eligible amount? ...

December 31, 1985 $ 500,000 Less: reduction re 1986 sales $ 600,000 Recaptured capital cost allowance to be included in income under subsection 13(1) ($ 100,000) Note (2): Although not shown in this example, the land relative to the building will, except that it is non-depreciable, be subject to the same considerations with respect to the determination of a notional capital gain, income gain, and the reporting thereof in the year of sale. ... The same considerations will apply with respect to real estate, other than vacant land, that was purchased for the purpose of resale. 22. ...

December 31, 1985 $ 500,000 Less: reduction re 1986 sales $ 600,000 Recaptured capital cost allowance to be included in income under subsection 13(1) ($ 100,000) Note (2): Although not shown in this example, the land relative to the building will, except that it is non-depreciable, be subject to the same considerations with respect to the determination of a notional capital gain, income gain, and the reporting thereof in the year of sale. ... The same considerations will apply with respect to real estate, other than vacant land, that was purchased for the purpose of resale. 22. ...

Split-receipting definitions 1 Amount of advantage- The total of the fair market value of all consideration (right, privilege, material advantage) provided for the property transferred. ... If a donor is provided with an article (advantage) in consideration for a pledge to make donations over a number of years, how would one calculate the eligible amount? ...