,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

            ,9=m,n ,circul>
    
,subject3 ,transf] ( prop]ty 6a corpor,n
  "u sec;n #he
,numb]3 #gf-ai;,r#c
,date3 ,june #ag1 #aiif

  ,? ,circul> c.els & replaces ,9=m,n
,circul> #gf-ai;,r#b dat$ ,june #ae1
#aiij4 ,x provides 9=m,n & guid.e 6help
y make elec;ns "u subsec;ns #he7#a7 &
7#b7 (! ,9come ,tax ,act = c]ta9 types (
prop]ty transf]r$ 6a corpor,n4 ,y %d r1d
? circul> 9 3junc;n ) ,=ms ,t#bjeg &
,t#bjeh1 & ,9t]pret,n ,bullet9s
,,it-#afi & ,,it-#bia4 ,any ref];e 6an
,9t]pret,n ,bullet9 or ,9=m,n ,circul> 9
? circul> ref]s 6! curr5t v].n ( t
bullet9 or circul>4
  ,? ,9=m,n ,circul> 9corporates ! #aiia
6#aiid am5d;ts 6! ,9come ,tax ,act &
cl>ifies ! de"p;tal policies4 ,x      #a
              #gf-ai;,r#c            a#a
does n 9clude any -;t on #aiie draft
legisl,n4
  ,": applica#1 ,rev5ue ,canada has
ext5d$ xs posi;n on sec;n #he elec;ns
6elec;ns "u subsec;n #ic7#a71 ,elec;n re
4posi;n ( %>e 9 =eign a6iliate1 subsec;n
#ig7#b71 ,rules ": elec;n 0"pn]s1 &
subsec;n #ih7#c71 ,rules applica# ":
"pn]%ip c1ses 6exi/4 ,y %d use ,=m
,t#bajg1 ,elec;n 9 ,respect (a ,4posi;n
( ,%>es 9 a ,=eign ,a6iliate1 ,=m
,t#bjei1 ,elec;n on ,4posi;n ( ,prop]ty
0a ,taxpay] 6a ,canadian ,"pn]%ip1 & ,=m
,t#bjfj1 ,4posi;n ( ,prop]ty ,^u ,cess,n
( ,"pn]%ip respectively 6make ^!
elec;ns4 ,! ,de"p;t's views on ! m]g] or
amalgam,n ( ,canadian "pn]%ips >e set \
9 ,,it-#dga1 ,m]g] ( ,"pn]%ips

           ,prop]ty transf]r$
    
#a4 ,subsec;n #he7#a7 p]mits a taxpay]1
  & subsec;n #he7#b7 p]mits all memb]s
  (a "pn]%ip 6elect 6def] all or "p   #b
              #gf-ai;,r#c            b#a
  (! 9come : wd o!rwise >ise on !
  transf] ( c]ta9 types ( prop]ty 6a
  taxa# ,canadian corpor,n4 ,? sec;n
  provides t y1 z ! taxpay]1 c make !
  transf] at an agre$ am.t on : ! ,act
  imposes v>i\s limit,ns4 ,y h 6elect a
  doll> am.t1 z oppos$ 6mak+ a
  descriptive elec;n1 9 sett+ ! agre$
  am.t =! purposes ( subsec;n #he7#a74
  ,y may am5d 7see p>agraph #ae7 b y _c
  revoke an elec;n fil$ "u sec;n #he4
#b4 ,! rules 9 sec;n #he apply 6ea*
  prop]ty transf]r$4 ,acly1 if ! "pies
  9t5d$ b fail$ 69clude a "picul>
  prop]ty transf]r$ :5 fil+ an orig9al
  elec;n =m1 we w 3sid] t ! transf]or
  4pos$ (! omitt$ prop]ty = proce$s
  equal 6! fair m>ket value4 ,h["e1 ac
  6subsec;n #he7#g7 or #he7#g.a71 !
  "pies may file an a4i;nal elec;n = t
  prop]ty af ! date ! elec;n 0 o!rwise
  due 7see p>agraph #ae74
#c4 ,al? ,=m ,t#bjeg1 ,elec;n on
  ,4posi;n ( ,prop]ty 0a ,taxpay]     #c
              #gf-ai;,r#c            c#a
  6a ,taxa# ,canadian ,corpor,n1 & ,=m
  ,t#bjeh1 ,elec;n on ,4posi;n (
  ,prop]ty 0a ,"pn]%ip 6a ,taxa#
  ,canadian ,corpor,n1 require a
  specific & adequate descrip;n ( ea*
  prop]ty transf]r$1 ! "pies 6! elec;n c
  ex]cise "s 4cre;n :5 transf]r+ _m
  prop]ties4 ,= example1 if y >e
  transf]r+ all ! deprecia# prop]ties (a
  prescrib$ class1 x is n nec 6li/ ea*
  prop]ty1 or %[ ! 3sid],n = ea* on !
  elec;n =m4 ,9/1d1 y h 69dicate on ! =m
  only ! total fair m>ket value (!
  prop]ties1 ! less] (! undepreciat$
  capital co/ &! co/ (! prop]ties1 !
  fair m>ket value (! 3sid],n rcvd1 &!
  agre$ am.t =! :ole class4 ,h["e1 y m/
  reta9 support+ s*$ules4 ,!y >e
  "picul>ly important 6det]m9e !
  designat$ ord] ( 4posi;n ( ea*
  deprecia# prop]ty1 z describ$ 9
  ,,it-#bia1 ,transf] ( ,prop]ty 6a
  ,corpor,n "u ,subsec;n #he7#a74
                                      #d
              #gf-ai;,r#c            d#a
#d4 ,! ,de"p;t w a3ept elec;ns report+ a
  nom9al am.t z ! agre$ am.t =! transf]
  ( prop]ty1 provid$ t ! am.t is )9 !
  limit,ns impos$ 9 ! relevant p>agraphs
  e4g41 #he7#a77c71 7c4#a71 7c4#b71 7d71
  & 7e74
#e4 ,p>agraph #he7#a77d7 5sures t !
  agre$ am.t = eligi# capital prop]ty =a
  busi;s _c 2 less ?an ! l1/ ( f\r-?irds
  (! cumulative eligi# capital ( t
  busi;s1 ! co/1 &! fair m>ket value4
  ,:5 ! l[e/ ( ^! am.ts is z]o 7e4g41
  e>n$ gdwill = : "! is no co/7 &! "pies
  9t5d$ 6transf] ! prop]ty on a tax-
  def]r$ basis1 ! "pies / h 6li/ !
  prop]ty on ,=m ,t#bjeg & /ate a nom9al
  am.t4 ,if ! "pies transf] gdwill & d n
  9clude x on ! prescrib$ =m1 we w 3sid]
  x 6be 4pos$ ( at xs fair m>ket value4
  ,x may 2 possi# 6avoid ? tax 3sequ;e
  0fil+ a late elec;n 7see p>agraphs #b
  & #ae 6#ah74 ,= m 9=m,n1 ref] to
  ,,it-#adc1 ,m1n+ ( ,eligi# ,capital
  ,exp5diture1 & ,,it-#abc1           #e
              #gf-ai;,r#c            e#a
  ,transac;ns ,9volv+ ,eligi# ,capital
  ,prop]ty4
#f4 ,=ms ,t#bjeg & ,t#bjeh require y
  64close ! fair m>ket value ( bo? !
  prop]ty 4pos$ (&(! non-%>e 3sid],n
  rcvd4 ,y %d keep ! "w+ pap]s us$
  6>rive at ^! values4
#g4 ,ev5 ?\< y may li/ s"eal prop]ties
  on a s+le elec;n =m1 sec;n #he
  requires a sep>ate agre$ am.t = ea*
  prop]ty transf]r$4 ,! ,de"p;t w adju/
  an elec;n =m 64reg>d all ref];es 6a
  transf] ( an
--------------------------------------#b
  9eligi# prop]ty1 )\t a6ect+ ! valid;y
  (! o!r transf]s4 ,"! may 2 tax
  3sequ;es 9 transf]r+ 9eligi#
  prop]ties4 ,"!=e1 x is important
  65sure t y 9clude only eligi#
  prop]ties 9 any elec;n fil$ "u sec;n
  #he4


                                      #f
             ,3sid],n rcvd           a#b
    
#h4 ,"u sec;n #he1 ! 3sid],n t !
  transf]or rcvs =! prop]ty transf]r$ 6!
  corpor,n has 69clude at l1/ "o %>e 7or
  frac;n (a %>e7 (! capital /ock ( t
  corpor,n =! elec;n 6be valid4

            ,fil+ require;ts
    
#i4 ,=m ,t#bjeg applies 6elec;ns made "u
  subsec;n #he7#a74 ,transf]ors m/ file
  ? =m sep>ately f any 9come tax return
  at ! tax c5tre ": !y file _! tax
  returns4 ,! transf]or1 or a p]son
  au?oriz$ 9 writ+ on ! transf]or's
  2half1 &! au?oriz$ (fic] (! transf]ee
  h 6sign ! elec;n =m4
#aj4 ,two or m transf]ors may elect
  6transf] ! same prop]ty1 or a numb] (
  "pn]s may transf] _! "pn]%ip 9t]e/s4
  ,9 ^! situ,ns1 "o designat$ p]son %d
  file all ! -plet$ ,t#bjeg =ms &a li/ (
  all ! elect+ transf]ors simultane\sly
  at ! tax c5tre s]v+ ! transf]ee     #g
              #gf-ai;,r#c            b#b
  corpor,n4 ,we w a3ept ! signature (!
  p]son t ! transf]ors au?oriz$ 6act on
  _! 2half if t p]son has provid$ pro( (
  au?or;y4 ,! designat$ p]son has
  6provide ! a4ress & social 9sur.e
  numb]1 or ! corpor,n a3.t or busi;s
  numb] = ea* transf]or resid5t 9
  ,canada4
#aa4 ,=a transf]or t is a "pn]%ip1 "o
  "pn] designat$ 0! "pn]%ip %d file ,=m
  ,t#bjeh4 ,all "pn]s1 or a p]son
  au?oriz$ 9 writ+ 0! "pn]s 6sign = !m1
  has 6sign ! elec;n =m1 al;g ) an
  au?oriz$ (fic] (! transf]ee4 ,we w
  a3ept ! signature (! designat$ "pn]
  only if ! "pn]%ip provides pro( (
  au?or;y4 ,! "pn]%ip has 6file ! elec;n
  =m sep>ately f any 9come tax return1
  at ! tax c5tre ": ! transf]ee usu,y
  files xs 9come tax return4 ,7,see -;ts
  on ! transf] ( prop]ty 6a corpor,n 0a
  "pn]%ip "u subsec;n #he7#b7 9
  ,,it-#cgh1 ,w9d+-up (a ,"pn]%ip47'
                                      #h
              #gf-ai;,r#c            c#b
#ab4 ,! d1dl9e 6file =ms ,t#bjeg &
  ,t#bjeh is ! e>lie/ date on : any (!
  "pies 6! elec;n has 6file an 9come tax
  return =! tax,n ye> 9 : ! transf]
  o3urr$4 ,"u subsec;n #aej7#a71 an
  9dividual has 6file an 9come tax
  return =! cal5d> ye> 9 : ! 9dividual
  4pos$ (a capital prop]ty1 or has a
  taxa# capital ga94 ,= prop]ty o!r ?an
  capital prop]ty1 we h 63sid] any
  elec;n "u subsec;n #be7#a7 or #ii7#b7
  t ext5ds ! fiscal p]iod ( ei an
  9dividual proprietor :o 4pos$ (a
  busi;s1 or an 9dividual memb] (a
  t]m9at$ "pn]%ip4
#ac4 ,! "pies 6an elec;n h 6provide all
  ! 9=m,n requir$ 0! =ms1 obta9 !
  appropriate signatures1 & pay any
  late-fil+ p5alties :5 fil+ ! =ms4 ,all
  "pies %d 5sure t !y file _! elec;n on
  ! mo/ rec5t v].n (! prescrib$ =m
  7availa# f _! tax s]vices (fice74
#ad4 ,! relevant =ms provide m details
  on fil+ require;ts4                 #i
         ,late & am5d$ elec;ns       d#b
    
#ae4 ,"u subsec;n #he7#g71 y c make an
  elec;n up 6?ree ye>s af ! fil+ d1dl9e
  ref]r$ 6in p>agraph #ab4 ,subsec;n
  #he7#g.a7 provides t y c file an
  elec;n m ?an ?ree ye>s af ! orig9al
  due date1 or am5d an elec;n at any "t
  if1 9 ! op9ion (! ,m9i/]1 ! circum/.es
  giv+ rise 6! late or am5d$ elec;n >e j
  & equita#4 ,! ,m9i/] delegates !
  au?or;y 6a3ept ^! late & am5d$ elec;ns
  6! directors ( tax s]vices (fices4 ,y
  or yr repres5tative %d file a late or
  am5d$ elec;n1 provid$ "u subsec;n
  #he7#g.a71 at ! transf]or's tax
  s]vices (fice1 tgr )a writt5 reque/ 6!
  ,m9i/] 6a3ept ! elec;n4 ,! reque/ %d
  provide ! r1sons :y y 3sid] t x is j &
  equita# 6a3ept ! elec;n4 ,if y d n
  9clude ^! r1sons1 ! ,de"p;t w n
  process ! elec;n4 ,y al h 6pay an
  e/imate (! applica# p5alty :5 mak+ !
  elec;n 7ref] 6p>agraph #ba74
                                     #aj
              #gf-ai;,r#c            e#b
#af4 ,we w g5],y a3ept an am5d$ elec;n
  "u subsec;n #he7#g.a7 if xs purpose is
  6revise an agre$ am.t1 & )\t ? revi.n1
  "! wd 2 un9t5d$ tax 3sequ;es =!
  taxpay]s 9volv$4 ,we w p]mit revi.ns
  6correct an ]ror1 omis.n1 or ov]si<t
  made at ! "t (! orig9al elec;n4 ,h["e1
  we w n p]mit revi.ns :51 9 ! ,de"p;t's
  view1 ! ma9 purpose (! am5d$ elec;n
  is3
  7a7 retroactive tax plann+1 s* z tak+
    advantage ( losses or tax cr$its n
    3sid]$ :5 ! elec;n 0 orig9,y fil$4
    ,9 situ,ns ": ! *anges >e "ply
    retroactive tax plann+ & "ply
    6correct ]rors1 we w advise y t we w
    only a3ept an am5d$ elec;n =! latt]2
  7b7 6take advantage ( am5d;ts 9 ! law
    5act$ .af ! orig9al elec;n 0 fil$1
    e4g41 an 9cr1se 9 ! agre$ am.t ( an
    elec;n made 9 ,april #aihe 6cr1te a
    capital ga9 t may 2 (fset 0a capital
    ga9s deduc;n "u sec;n #aaj.f2
                                     #aa
              #gf-ai;,r#c            f#b
  7c7 6improp]ly avoid or evade tax2 or
  7d7 6*ange ! agre$ am.t 9 a /atute-
    b>r$ ye>4
#ag4 ,! ,de"p;t w a3ept an am5d$ elec;n
  only if y or yr repres5tative orig9,y
  fil$ a valid elec;n "u subsec;n
  #he7#a7 or 7#b74 ,= example1 if1 9 !
  orig9al elec;n1 3sid],n rcvd 0!
  transf]or does n 9clude at l1/ "o 7or
  a frac;n ( "o7 %>e1 x w n 2 a valid
  elec;n4
--------------------------------------#c
#ah4 ,rev5ue ,canada w g5],y a3ept an
  am5d$ elec;n :53
  7a7 x corrects an 9a3urate prop]ty
    valu,n t gave rise 6un9t5d$ tax
    3sequ;es2
  7b7 x reduces ! agre$ am.t ( transf]r$
    %>es 6! correct co/ am.t :5 a
    transf] at co/ 0 ! 9t5;n1 e4g41
    subsec;n #hc7#a7 divid5ds 7 omitt$
    :5 calculat+ _! adju/$ co/ base2
  7c7 x corrects situ,ns ": x is cle> t
    an am.t 0 9s]t$ 9 ]ror1 s* z !   #ab
              #gf-ai;,r#c            a#c
    transf] ( deprecia# prop]ty at xs
    net book value 9/1d ( xs
    undepreciat$ capital co/2 &
  7d7 x corrects o!r situ,ns : result$ 9
    un9t5d$ tax 3sequ;es1 e4g41 !
    applic,n ( sec;n #hd.a1 subsec;ns
    #ae7#a71 #hd7#a71 & #he7#b.a71 or
    p>agraph #he7#a77e4#b71 :5 x is cle>
    ! "pies want$ ! rollov] )\t any imm
    tax 3sequ;es4
  
        ,am5d$ elec;n n requir$
    
#ai4 ,! ,de"p;t w correct cl]ical ]rors
  )\t requir+ an am5d$ elec;n4 ,we w
  3sid] transposi;n or typographical
  ]rors z cl]ical ]rors only if !y >e
  obvi\s ^u \r 9itial review (! elec;n
  =m4 ,we w n 3sid] z a cl]ical ]ror a
  situ,n ": ! agre$ am.t equals ! fair
  m>ket value (! prop]ty at ! "t (
  transf]4
#bj4 ,p>agraphs #he7#a77b71 7c71 7c4#a71
  7c4#b71 7d71 7e71 7e4#b71          #ac
              #gf-ai;,r#c            b#c
  7e4#c71 & 7e4#d7 automatic,y adju/ !
  agre$ am.t (! transf]r$ prop]ty4 ,9 s*
  cases1 y d n h 6file an am5d$ elec;n4
  ,h["e1 we w ne$ an am5d$ elec;n if y
  want 6avoid ! tax 3sequ;es result+ f !
  automatic adju/;t 6! agre$ am.t1
  subject 6! -;ts 9 p>agraphs #ae 6#ah
  abv4

     ,p5alty = late & am5d$ elec;ns
    
#ba4 ,! ,de"p;t does n a3ept an am5d$ or
  late-fil$ elec;n made "u subsec;n
  #he7#g7 or 7#g.a71 un.s ! transf]or
  calculates & pays ! e/imat$ p5alty :5
  fil+ ! elec;n4 ,we w subsequ5tly
  det]m9e & assess ! bal.e (! p5alty !
  transf]or has 6pay )\t delay4 ,if we
  a3ept a late or am5d$ elec;n1 !
  p5alty1 calculat$ pursuant 6subsec;n
  #he7#h71 is ! less] (3
  7a7 "o-qu>t] ( #a@3p (! excess (!
    prop]ty's fair m>ket value at ! "t
    (! 4posi;n ov] ! agre$ am.t =    #ad
              #gf-ai;,r#c            c#c
    ea* mon? or "p (a mon? af ! elec;n's
    orig9al due date & 2f ! fil+ (! late
    or am5d$ elec;n2 &
  7b7 4#ajj = ea* mon? or "p (a mon?
    ref]r$ 6abv1 6a maximum ( 4#h1jjj4
#bb4 ,! p5alty describ$ 9 p>agraph #ba
  is subject 6! provi.ns ( subsec;n
  #bbj7#c.a74 ,= details on ! c.ell,n or
  waiv] ( any p5alty1 see ,9=m,n
  ,circul> #ib-b1 ,guidel9es =! ,c.ell,n
  ,& ,waiv] ,( ,9t]e/ ,& ,p5alties4

       ,b5efit 3f]r$ on a relat$
                 p]son
    
#bc4 ,p>agraph #he7#a77e4#b7 prev5ts y z
  ! taxpay] f us+ subsec;n #he7#a7 63f]
  a b5efit on a p]son relat$ 6y4 ,if !
  fair m>ket value (! transf]r$ prop]ty
  immly 2f ! 4posi;n exce$s ! fair m>ket
  value ( all ! 3sid],n tak5 back1 !
  agre$ am.t w 2 9cr1s$ 0! por;n ( ?
  excess t c r1sonably 2 reg>d$ z a
  b5efit 3f]r$ on a p]son relat$     #ae
              #gf-ai;,r#c            d#c
  6y4 ,? rule applies except =! purpose
  ( det]m9+ ! co/ 6y (! %>es (!
  transf]ee corpor,n y rcvd z 3sid],n =!
  transf]r$ prop]ty4 ,transf]s 6a
  corpor,n t 0 a :olly [n$ corpor,n (!
  taxpay] immly af ! 4posi;n w n 2
  subject 6p>agraph #he7#a77e4#b7
  8b5efit 3f]r$ 6a relat$ p]son40 ,9 ^!
  circum/.es no b5efit w 2 3sid]$ 6h be5
  3f]r$ ev5 ?\< ! fair m>ket value (!
  transf]r$ prop]ty exce$s ! fair m>ket
  value (! 3sid],n rcvd4 ,subsec;n
  #he7#a.c7 def9es ! t]m 0 :olly [n$
  corpor,n40
#bd4 ,! pot5tial def]r$ tax liabil;y 9 !
  h&s (! transf]ee does n reduce ! fair
  m>ket value (! transf]r$ prop]ty4 ,y
  %d 3sid] ? :5 y det]m9e ! am.t (
  3sid],n t has 6be tak5 back 65sure t
  p>agraph #he7#a77e4#b7 does n apply4
  ,g5],y1 we w n apply p>agraph
  #he7#a77e4#b7 :5 y satisfy all !
  foll[+ 3di;ns3
                                     #af
              #gf-ai;,r#c            e#c
  --! transf]or takes back retracta#
    pref];e %>es hav+ a retrac;n am.t
    equal 6! fair m>ket value (!
    transf]r$ prop]ty less any o!r
    3sid],n tak5 back2
  --! net fair m>ket value (! transf]ee
    corpor,n is n less ?an ! retrac;n
    am.t (! retracta# %>es immly af !
    transf]2 &
  --! "rs1 3di;ns1 & "*i/ics (! %>es >e
    s* t !y ma9ta9 _! value until !y >e
    redeem$4
  ,= cl>ific,n purposes1 8retracta#
  %>es0 >e %>es t >e redeema# at ! op;n
  (! hold]4

     ,deem$ divid5ds & appropri,ns
    
#be4 ,a p]son transf]r+ prop]ty 6a
  corpor,n % rcv 3sid],n : 9cludes %>es1
  or a frac;n (a %>e1 (a class (!
  capital /ock ( t corpor,n4 ,? transf]
  may result 9 an 9cr1se 9 pd-up capital
  t is m ?an ! 9cr1se 9 ! value (!   #ag
              #gf-ai;,r#c            f#c
  corpor,n's net assets4 ,9 s* a situ,n1
  = prop]ty 4pos$ ( 2f ,novemb] #bb1
  #aihe1 all ! %>ehold]s ( t class (
  %>es >e deem$ 6h rcvd a divid5d ac
  6subsec;n #hd7#a74 ,af ,novemb] #ba1
  #aihe1 :5 ! taxpay] transf]s prop]ty
  6a corpor,n "u subsec;n #he7#a7 or
  7#b71 &! pd-up capital (! %>e 3sid],n
  is grt] ?an ! co/ 6! corpor,n (!
  prop]ty 7less ! fair m>ket value ( any
--------------------------------------#d
  non-%>e 3sid],n71 subsec;n #he7#b.a7 w
  apply 6reduce ! pd-up capital (! %>es
  0! am.t (! excess4 ,z a result1 we w
  take 96a3.t ! reduc;n 9 pd-up capital
  "u subsec;n #he7#b.a7 9 det]m9+ ! am.t
  ( any deem$ divid5d "u subsec;n
  #hd7#a7 =! same transac;n4 ,9 s*
  situ,ns1 ": ! total fair m>ket value
  (! 3sid],n is m ?an ! fair m>ket value
  ( all ! prop]ties transf]r$1 subsec;n
  #ae7#a7 applies1 except = any am.t t 0
  alr 9clud$ 9 9come "u subsec;n
  #hd7#a74 ,= m details &            #ah
              #gf-ai;,r#c            a#d
  examples1 see ,,it-#dcb1 ,b5efits
  ,3f]r$ on ,%>ehold]s1 & ,,it-#bia1
  ,transf] ( ,prop]ty 6a ,corpor,n "u
  ,subsec;n #he7#a74 ,= 9=m,n 3c]n+ pd-
  up capital1 ref] 6,,it-#dfc1 ,pd-up
  ,capital4

         ,price adju/;t clauses
    
#bf4 ,,it-#afi1 ,price ,adju/;t
  ,clauses1 /ates ! 3di;ns "u : !
  ,de"p;t w recognize a price adju/;t
  clause = prop]ty transf]r$ 9 a non-
  >m's-l5g? transac;n4 ,h["e1 a price
  adju/;t clause does n automatic,y am5d
  a sec;n #he elec;n4 ,9 ord] 6give
  e6ect 6a price adju/;t clause1 y h
  6file an am5d$ elec;n "u subsec;n
  #he7#g.a74 ,an a3epta# price adju/;t
  clause has 6.adju/ .! .price (!
  prop]ty transf]r$ &! 3sid],n rcvd1 .n
  .! .quant;y (! prop]ty transf]r$4 ,!
  t]ms 8am.t0 & 8fair m>ket value0 9
  sec;n #he m/ 2 9t]pret$ z fix$ &   #ai
              #gf-ai;,r#c            b#d
  specific doll> figures at ! date (
  transf]1 n =mulas t c det]m9e or adju/
  an am.t lat]4 ,a price adju/;t clause
  _c *ange ^! figures retroactively4

     ,losses f 4posi;n ( prop]ty 6a
            3troll$ corpor,n
    
#bg4 ,g5],y1 y _c claim an all[a#
  capital loss or a t]m9al all[.e 7i4e41
  ! deduc;n ( yr cumulative eligi#
  capital7 if x >ises on a transf] 6a
  corpor,n &1 immly af ! transf]1 !
  corpor,n 0 3troll$ directly or
  9directly 0! taxpay]s describ$ 9
  subsec;n #he7#d7--see ,,it-#bia1
  ,transf] ( ,prop]ty 6a ,corpor,n "u
  ,subsec;n #he7#a74 ,? re/ric;n on
  losses applies on a prop]ty-by-prop]ty
  basis4 ,3sequ5tly1 losses & ga9s on
  prop]ties transf]r$ at ! same "t may n
  2 (fset4

                                     #bj
          ,pre-#aigb appreci,n       c#d
    
#bh4 ,9 c]ta9 cases1 y w 2 una# 6obta9 a
  tax-free 4tribu;n (a pre-#aigb ga9 z a
  result (a transf] "u sec;n #he4 ,=
  example1 if ! fair m>ket value (
  deprecia# prop]ty at ,decemb] #ca1
  #aiga1 is m ?an ! actual co/ (!
  prop]ty1 & an 9dividual transf]s !
  prop]ty 6a corpor,n "u sec;n #he at
  less ?an ! fair m>ket value at
  ,decemb] #ca1 #aiga1 no #aiga capital
  surplus 7or1 af #aigh1 pre-#aigb
  capital surplus7 w >ise if ! corpor,n
  lat] 4poses (! prop]ty at m ?an xs
  actual co/4 ,= m details1 see
  ,,it-#acb1 ,capital ,prop]ty ,[n$ on
  ,decemb] #ca1 #aiga--,non-,>m's ,l5g?
  ,transac;ns4





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