See Also
Graphic Packaging Canada Corp. v. The Queen, 2001 DTC 861 (TCC), aff'd 2003 DTC 5007 (FCA)
In applying the version of the definition of superficial loss that applied to 1988 transactions, Archambault T.C.J. rejected the argument on...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | 126 |
IRC v. Beveridge, [1979] T.R. 305
Shares transferable at will which were acquired in place of shares which had been subject to restrictions on the right to transfer, were not of...
Administrative Policy
7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 4, 2022-0940941C6 - Stop-loss Rules
On March 15, 2022, an individual disposes of all of his shares (being 2,000) of Pubco, and realized a capital loss of $10,000. On March 16, 2022,...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(f) | superficial loss allocated on a pooled basis to shares held at the end of the 61-day period by affiliated persons | 241 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.3) | suspended loss rules engaged by shareholder, and shareholder’s RRSP acquiring and then holding identical shares during the 61-day period | 107 |
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 3, 2021-0896031C6 F - Règles sur les pertes apparentes
Mr. A sold 1,000 shares of a listed company in a non-registered account on September 1, 2021 at a capital loss of $20,000. The RRSP of his spouse,...
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| Tax Topics - Statutory Interpretation - Interpretation Act - Section 27 - Subsection 27(5) | counting 30 day period starting with disposition | 150 |
7 July 2014 External T.I. 2014-0518561E5 F - Superficial loss
Brothers A and B, who each hold 50% of the shares of Opco, dispose of those shares for their FMV to Holdco, another taxable Canadian corporation...
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| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) | transferred corporation wound-up but not dissolved within 30 days | 149 |
12 September 2005 External T.I. 2005-0134631E5 F - Superficial Loss - Realization of Latent Loss
Four unrelated individuals each holding 25% of the common shares of a small business corporation, transfer their shares to a corporation...
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| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | 4 unrelated individuals transferring their equal shareholdings of Opco to Newco could be a NAL transaction | 179 |
22 September 2004 External T.I. 2004-0073011E5 - Superficial Loss
A taxpayer owning 60 shares disposes of 50 shares at a loss, with 10 of the 60 shares owned prior to the disposition having been acquired during...
7 May 2003 External T.I. 2003-0182755 F - Superficial Loss on Shares
Situation 1
The taxpayer’s spouse transferred her shares, with an ACB of $12,721 to the taxpayer at FMV for $2,300 in cash and realized a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(iv) - Clause 40(2)(g)(iv)(B) | sale by individual to her husband followed by immediate sale by him to her RRSP, circumvented s. 40(2)(g)(iv)(B) | 124 |
4 April 2003 External T.I. 2002-0171635 F - PERTE APPARENTE
The superficial loss rules did not apply where an individual sold his shares of a public corporation at a loss and, within 30 days of that sale,...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.3) | purchase within 30 days by daughter of share vendor’s controlling shareholder did not engage the superficial loss rules | 59 |
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(a) | father and daughter not affiliated | 46 |
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(b) | corporation and daughter of its controlling shareholder not affiliated | 59 |
15 January 2003 External T.I. 2002-0178505 - SUPERFICIAL LOSS
A definition of superficial loss would apply where Mr. A acquired 200 shares of ACO for $100 per share on January 15, 2002, disposed of shares of...
19 July 2002 External T.I. 2002-0133535 F - PERTE APPARENTE CALCUL DU PBR
CCRA provided a numerical illustration of the application of the superficial loss rule and the application of the ACB increase under s. 53(1)(f)...
30 October 1996 External T.I. 9632485 - SUPERFICIAL LOSSES AND NON-TAXABLE ENTITIES
As the cost amount of property is relevant for Part XI purposes, a pension fund that is exempt from tax under s. 149(1)(o) nonetheless is required...
IT387R2 "Meaning of Identical Properties" 14 July 1989
1. "Identical properties"...are properties which are the same in all material respects, so that a prospective buyer would not have a preference...
17 March 1992 T.I. 920379
Discussion of RC formula for determining quantum of superficial loss where identical items are both disposed of and bought during the 60-day period.
89 C.R. - Q.41
s. 245 will not be applied where a taxpayer sells property to sustain a loss and then repurchases the property 31 days later. "Since this...
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| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | 54 |
IT-387R2 "Meaning of 'Identical Properties'"
Identical properties are the same in all material respects, so that a perspective buyer would not have a preference for one as opposed to another.
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| Tax Topics - Income Tax Act - Section 47 - Subsection 47(1) | 0 |
Paragraph (i)
Administrative Policy
4 April 2002 External T.I. 2001-0103525 F - Identical Property
An individual holding Class B shares of Pubco with attributes identical to the Class A shares except that the Class A shares carry multiple...