*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. *** Canada Revenue Agency T2017 E (11) (Front) SUMMARY OF RESERVES ON DISPOSITIONS OF CAPITAL PROPERTY Complete this form if you are an individual (other than a trust) who is reporting a reserve claimed on your 2010 income tax and benefit return or claiming a reserve on dispositions of capital property (including gifts of certain securities) in 2011. To determine if you are eligible to claim a reserve in 2011, see "Claiming a reserve" in Guide T4037, Capital Gains. The information on the back of this form explains how to calculate a capital gains reserve. Attach one completed copy of this form to your 2011 income tax and benefit return. Part 1 – Dispositions of capital property after November 12, 1981 A. Dispositions of qualified farm property (QFP) and qualified fishing property (QXP) Line 6680: Amount of 2010 reserve for dispositions of QFP to your child after 2001 and before March 19, 2007, dispositions of QXP to your child after May 1, 2006, and before March 19, 2007, and all other dispositions of QFP and QXP after 2006, and before March 19, 2007 (from line 6681 of Form T2017 for 2010) ^ Line 6681: Amount of 2011 reserve for dispositions of QFP to your child after 2002 and before March 19, 2007, and all dispositions of QXP to your child after May 1, 2006, and before March 19, 2007 ^ Line A: Subtotal: line 6680 minus line 6681 (if negative, enter "0") = ^ Line 6708: Amount of 2010 reserve for all dispositions of QFP and QXP (including those to your child) after March 18, 2007 (from line 6684 of Form T2017 for 2010) ^ Line 6684: Amount of 2011 reserve for dispositions of QFP and QXP to your child after March 18, 2007, and all other dispositions of QFP and QXP after 2007 ^ Line B: Subtotal: line 6708 minus line 6684 (if negative, show in brackets) = ^ Line 6683: Subtotal: line A plus line B (if negative, show in brackets) = ^ Dispositions of qualified small business corporation shares (QSBCS) Line 6687: Amount of 2010 reserve for dispositions of QSBCS to your child after 2001 and before March 19, 2007, and all other dispositions of QSBCS after 2006 and before March 19, 2007 (from line 6688 of Form T2017 for 2010) ^ Line 6688: Amount of 2011 reserve for dispositions of QSBCS to your child after 2002 and before March 19, 2007 ^ Line C: Subtotal: line 6687 minus line 6688 (if negative, enter "0") = ^ Line 6709: Amount of 2010 reserve for all dispositions of QSBCS (including those to your child) after March 18, 2007 (from line 6685 of Form T2017 for 2010) ^ Line 6685: Amount of 2011 reserve for dispositions of QSBCS to your child after March 18, 2007, and all other dispositions of QSBCS after 2007 ^ Line D: Subtotal: line 6709 minus line 6685 (if negative, show in brackets) = ^ Line 6690: Subtotal: line C plus line D (if negative, show in brackets) = ^ C. Dispositions of property (other than QFP, QXP, and QSBCS) to your child Line 6691: Amount of 2010 reserve for dispositions to your child: - after 2001, of family farm property other than QFP and of shares of capital stock of a small business corporation other than QSBCS; or - after May 1, 2006, of family fishing property other than QXP (from line 6692 of Form T2017 for 2010). Line 6691 ^ Line 6692: Amount of 2011 reserve for dispositions to your child: - after 2002, of family farm property other than QFP and of shares of capital stock of a small business corporation other than QSBCS; or - after May 1, 2006, of family fishing property other than QXP. Line 6692: ^ Line 6694: Subtotal: line 6691 minus line 6692 (if negative, show in brackets) = ^ D. Dispositions of property other than dispositions described in A, B, and C above Line 6696: Amount of 2010 reserve for dispositions of property after 2006, other than dispositions listed on lines 6680, 6708, 6687, 6709, and 6691 (from line 6699 of Form T2017 for 2010) ^ Line 6699: Amount of 2011 reserve for dispositions of property after 2007, other than dispositions listed on lines 6681, 6684, 6688, 6685, and 6692 ^ Line 6701: Subtotal: line 6696 minus line 6699 (if negative, show in brackets) = ^ Line 6702: Total of lines 6683, 6690, 6694, and 6701 (if negative, show in brackets) = ^ continued on back T2017 E (11) (Back) Part 2 – Dispositions of capital property before November 13, 1981 Line 6702: Enter the amount from line 6702 on the other side ^ Line 6703: Amount of 2010 reserve for dispositions before November 13, 1981 (from line 6704 of Form T2017 for 2010) ^ Line 6704: Amount of 2011 reserve for dispositions before November 13, 1981 ^ Line 6705: Subtotal: line 6703 minus line 6704 (if negative, show in brackets) = ^ Line 6706: Total of lines 6702 and 6705. Enter this amount on line 192 of Schedule 3 (if negative, show in brackets) = ^ Definitions Eligible amount of gift, excepted gift, family farm property, family fishing property, non-qualifying securities, qualified farm property, qualified fishing property, qualified small business corporation shares, small business corporation, spouse or common-law partner, child – for the definitions of these terms, see "Definitions" in Guide T4037, Capital Gains. How do you calculate a reserve? The reserve you can claim in a tax year depends on when you disposed of the property, and the type of property you disposed of. You do not have to claim the maximum reserve in a tax year (Year A). However, the amount you claim in a later year (Year B) cannot be more than the amount you claimed for that property in the previous year (Year A). To determine your maximum reserve for 2011, use the calculation below that applies to you. Dispositions of capital property after November 12, 1981 If you disposed of property after November 12, 1981, the calculation you use will depend on the type of property and disposition. - All property (other than family farm property, family fishing property, and small business corporation shares sold to your child, as well as donated non- qualifying securities). You can claim a reserve up to a maximum of four years. Your reserve in each year cannot be more than the lesser of the following: (A) Year of sale 80% (B) Year after the sale First year: 60% Second year: 40% Third year: 20% Fourth year: zero (i) Capital gain multiplied by Amount payable after the end of the year divided by Proceeds of disposition (ii) Capital gain multiplied by (%) ^ (Enter the applicable percentage from (A) or (B)) ^ - Family farm property, family fishing property after May 1, 2006, and small business corporation shares sold to your child You can claim a reserve up to a maximum of nine years. Your reserve in each year cannot be more than the lesser of the following: (A) Year of sale 90% (B) Year after the sale First year: 80% Second year: 70% Third year: 60% Fourth year: 50% Fifth year: 40% Sixth year: 30% Seventh year: 20% Eight year: 10% Ninth year: zero (i) Capital gain multiplied by Amount payable after the end of the year divided by Proceeds of disposition (ii) Capital gain multiplied by (%) ^ (Enter the applicable percentage from (A) or (B)) - Gift of non-qualifying security (other than an excepted gift) to a qualified donee You can claim a reserve for any tax year ending within 60 months after the time you made the gift. However, you cannot claim a reserve for a gift of non- qualifying securities for the year in which the donee disposes of the securities, or the security ceases to be a non-qualifying security, or for any following year. Your reserve in each year cannot be more than the amount of the capital gain you realized from the making of the gift. For gifts of non-qualifying securities made after December 20, 2002, the reserve you can claim cannot be greater than the eligible amount of the gift. Dispositions of capital property before November 13, 1981 If you sold property before November 13, 1981, use the calculation below to determine your reserve. You should also use the calculation for property that you sold, or are considered to have sold, after November 12, 1981, if the disposition occurred: - under the terms of an offer or a written agreement made or entered into before November 13, 1981; or - as a result of the property having been stolen, destroyed, or expropriated before November 13, 1981. Capital gain multiplied by Amount payable after the end of the year divided by Proceeds of disposition Privacy Act, Personal Information Bank number CRA PPU 005