BU557 Lecture Notes - Lecture 1: Treasury Stock, Gain Capital
Document Summary
It will get rid of these accounts when a public company buys a ccpc: defer taxation, involuntary disposition vs. Voluntary disposition: the capital gains can be sheltered, both can be deferred; an example is you can defer the entire recapture and capital gain you might be little or no tax if you spend more or equal. Your factory to small so you sell your factory to buy a bigger one. Redeems shares: puc is tax free; the rest is proceeds of redemption puc will give you deemed dividend, deemed dividend is not always taxable, capital tax free, taxable - taxable dividend, puc acb = cg. Common shares: pretty much the same analysis of the land, calculate the fmv and acb and determine the cg, apply that and see what will go to cda and tcg. Debentures: there is a loss; discuss how you can use the capital loss, apply it to any capital gains.
