BU357 Chapter Notes - Chapter 7: Capital Cost Allowance, Capital Asset, Dividend
Document Summary
Truck owner/ driver: a semi-trailer purchased by a truck driver for the purpose of earning delivery income would be considered a capital asset: any gain on the sale of the semi-trailer would be considered capital in nature. Truck distributor: same semi-trailer purchased by a retail company for the purpose of resale would be considered inventory: profit from the sale of the semi-trailer, by the retail company, would not be considered a capital asset. The profit on the sale would be considered on account of income. Personal use property: not deductible as it is not for generating income. Listed personal property: loss up to the realized gains on of the property, use against listed personal property gains. Other capital property: can have a capital loss. Deemed disposition: death, change did not sell it but you got rid of it, cease to be a resident then you have disposed all of your assets at fmv.
