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

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act--,4posi;n (&
  ,transac;ns ,9volv+ ,eligi# ,capital
  ,prop]ty
,numb]3 ,,it-#abc;,r#d
,date3 ,may #cj1 #aihe
,ref];e3 ,sec;n #ad 7al sec;n #bd1
  p>agraphs #bj7#a77b71 #bj7#a77p71
  #ed7d7 & #hi7#a77b7 & sec;n #ba (!
  ,9come ,tax ,applic,n ,rules1 #aiga
  7,,itar77

  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#abc;,r#c dat$ ,decemb]
#d1 #aigh4 ,curr5t revi.ns >e designat$
0v]tical l9es4

#a4 ,? bullet9 4cusses transac;ns 9volv+
  eligi# capital prop]ty g5],y & 9
  "picul> ! provi.ns (! ,act : apply 6!
  9clu.n 9 9come "u subsec;n          #a
             ,,it-#abc;,r#d          a#a
  #ad7#a7 ( 8negative cumulative eligi#
  capital0 7see #b 2l7 &! -put,n ( an
  8eligi# capital am.t0 pursuant
  6subp>agraph #ad7#e77a77;iv74
#b4 ,subsec;n #ad7#a7 provides t ": at !
  5d (a tax,n ye> ! calcul,n (!
  8cumulative eligi# capital0 pursuant
  6! rules 9 p>agraph #ad7#e77a7 7see #c
  2l7 results 9 a negative bal.e1 t am.t
  7negative cumulative eligi# capital7
  is 6be 9clud$ 9 ! taxpay]'s 9come = t
  ye>4
#c4 ,! cumulative eligi# capital (a
  taxpay] at any giv5 "t af ,m>* #ca1
  #aigg is made up (
  7a7 "o-half ( all eligi# capital
    exp5ditures made 2f ! giv5 "t1 plus
  7b7 ! total (! am.ts 9clud$ 9 9come
    0virtue ( subsec;n #ad7#a7 = all
    tax,n ye>s 5d+ prior 6! giv5 "t1
  
  less ! a7regate (! foll[+ am.ts1

                                      #b
             ,,it-#abc;,r#d          b#a
  7c7 ! total (! ye>ly deduc;ns 9 -put+
    9come = ea* tax,n ye> 5d+ prior 6!
    giv5 "t 7n exce$+ #aj p] c5t (!
    cumulative eligi# capital at ! 5d (
    ea* ye>7 deduct$ "u p>agraph
    #bj7#a77b71 &
  7d7 ! total ( all eligi# capital
    am.ts1 2+ "o-half (! di6];e 2t
    7;i7 am.ts t 2came paya# 9 rel,n
      64posi;ns ( 8eligi# capital
      prop]ty0 af #aiga & 2f ! "t !
      cumulative eligi# capital is
      det]m9$1 &
    7;ii7 ! total (! \tlays & exp5ses
      made or 9curr$ 9 3nec;n )!
      4posi;ns4
--------------------------------------#b
  ,! e6ect (! def9i;n ( eligi# capital
  prop]ty 9 p>agraph #ed7d7 is 69clude
  all prop]ty ! co/ ( : 0 or1 _h x be5
  acquir$ af #aiga1 wd 2 an eligi#
  capital exp5diture "u ! provi.ns (
  p>agraph #ad7#e77b7 7see
  ,,it-#adc;,r#b74                    #c
             ,,it-#abc;,r#d          a#b
#d4 ,subject 6! excep;n 4cuss$ 9 #f 2l1
  ! 8am.t ''' paya#0 ref]r$ 6in !
  def9i;n ( eligi# capital am.t set \ 9
  subp>agraph #ad7#e77a77;iv7 is 3sid]$
  6be synonym\s ) 8due0 m1n+ a pres5t
  oblig,n 6pay4 ,?us1 only "o half (!
  am.ts : 2came due & paya# 9 a "picul>
  ye> "u ! t]ms (a transac;n 79clud+
  am.ts actu,y pd 9 ! ye>7 >e 9clud$ 9 !
  calcul,n ( cumulative eligi# capital
  pursuant 6subp>agraph #ad7#e77a77;iv74
  ,": = 9/.e ! gdwill (a busi;s is sold
  "u an agree;t call+ =a d[n pay;t
  foll[$ 0#c annual 9/al;ts1 only ! d[n
  pay;t is 3sid]$ an 8am.t paya#0
  pursuant 6subp>agraph #ad7#e77a77;iv71
  "o half ( : is 9clud$ 9 ! calcul,n (
  cumulative eligi# capital 9 ! ye> (!
  sale4 ,ea* (! #c annual 9/al;ts al
  2comes an 8am.t paya#0 = purposes (
  subp>agraph #ad7#e77a77;iv7 9 ! ye> x
  2comes due or is pd 7if t is soon]74
#e4 ,": 9 a "picul> tax,n ye> a taxpay]
  has report$ a 4posi;n ( an eligi#   #d
             ,,it-#abc;,r#d          b#b
  capital prop]ty 7o!r ?an a deem$
  4posi;n7 or any o!r ev5t produc+ an
  eligi# capital am.t on ! basis
  previ\sly a3ept$ 7! =m] basis7 9 : !
  8am.t ''' paya#0 0 alw 3sid]$ 6be !
  total proce$s ( 4posi;n1 & subsequ5tly
  reque/s reassess;t on ! basis n[
  adopt$ 7curr5t basis71 ! policy set \
  9 ,9=m,n ,circul> #ge-g;,r#c applies
  &! reque/ = reassess;t w 2 3sid]$ if !
  "t = fil+ a notice ( objec;n = t ye>
  has n expir$4
#f4 ,": an am.t is1 0any provi.n (!
  ,act1 deem$ 6be a taxpay]'s proce$s (
  4posi;n ( any eligi# capital prop]ty1
  subsec;n #ad7#b7 deems ! :ole am.t 6h
  2come paya# at ! "t (! deem$ 4posi;n &
  "!=e "o half (! am.t is 9clud$ 9 !
  cumulative eligi# capital calcul,n 9 !
  ye> ( 4posi;n4 ,? 9cludes1 0way (
  example1 ! deem$ proce$s ( 4posi;n "u
  sec;ns #fh 7"p 3sid],n = 4posi;n (
  prop]ty71 #fi 79adequate 3sid],n71 #he
  7transf] ( prop]ty 6a corpor,n 0a   #e
             ,,it-#abc;,r#d          c#b
  %>ehold]71 #hh 7w9d+-up71 & #ig
  73tribu;n ( prop]ty 6a "pn]%ip74
#g4 ,subsec;n #ad7#f7 provides = an
  elec;n ": a taxpay] 4poses ( an eligi#
  capital prop]ty 9 a "picul> tax,n ye>
  & acquires ano!r eligi# capital
  prop]ty z a replace;t 9 ! ye> foll[+ !
--------------------------------------#c
  ye> ( 4posi;n4 ,": an am.t 2comes
  paya# 6a taxpay] 9 ! "picul> tax,n ye>
  9 respect (! 4posi;n1 ! taxpay] may
  elect 6exclude "p or all ( s* am.t 7n
  exce$+ ! am.t paya# less relat$ \tlays
  or exp5ses7 z is us$ 6acquire a
  replace;t prop]ty 9 ! lat] ye> 9
  calculat+ cumulative eligi# capital =
  t ye>4 ,"o half (! am.t s exclud$ is
  a4$ 6! am.t o!rwise det]m9$ "u
  subp>agraph #ad7#e77a77;iv7 =! foll[+
  ye>4 ,! elec;n is 6be fil$ )!
  taxpay]'s return =! ye> 9 : !
  replace;t prop]ty is acquir$ 7see
  ,,it-#bei;,r74
                                      #f
             ,,it-#abc;,r#d          a#c
#h4 ,9 ord] 6qualify z a replace;t
  prop]ty = purposes ( subsec;n #ad7#f71
  a prop]ty m/ h be5 acquir$ =! same or
  a simil> use z ! use 6: ! =m] prop]ty
  _h be5 put &=! purpose ( ga9+ or
  produc+ 9come f ! same or a simil>
  busi;s 9 : ! =m] prop]ty _h be5 us$4
  ,": a taxpay] 0 n resid5t 9 ,canada at
  ! "t t a "picul> prop]ty 0 acquir$1 t
  prop]ty1 9 ord] 6qualify z a replace;t
  prop]ty1 m/ n only meet ! =ego+
  require;ts b m/ al h be5 acquir$ = use
  9 a busi;s c>ri$ on 0! taxpay] 9
  ,canada4
#i4 ,x %d 2 not$ t ! 8eligi# capital
  am.t01 8eligi# capital exp5ditures01 &
  8cumulative eligi# capital0 >e all 9
  respect (a busi;s2 ?us if a taxpay]
  c>ries on m ?an "o busi;s 7see
  ,,it-#bjf;,r71 ^! items m/ 2 a3.t$ =
  sep>ately = ea* busi;s4


                                      #g
             ,,it-#abc;,r#d          b#c
#aj4 ,s*$ule ;,a illu/rates ! -posi;n (!
  cumulative eligi# capital calcul,n z
  a6ect$ 0! v>i\s provi.ns ( sec;n #ad4

         ,transi;nal ,provi.ns
    
#aa4 ,subsec;n #ba7#a7 (! ,,itar reduces
  9 c]ta9 circum/.es ! 8am.t ''' paya#0
  t wd o!rwise 2 det]m9$ 0sec;n #ad1 =
  4posi;ns o3urr+ 9 ! cal5d> ye>s #aigb
  6#aihc 9clusive4 ,subsec;n #ba7#a7 (!
  ,,itar only applies ": ! am.t paya# 6!
  taxpay] on ! 4posi;n (! eligi# capital
  prop]ty is 8in respect (a busi;s c>ri$
  on "?\t ! p]iod -m5c+ ,janu>y #a1
  #aigb & 5d+ immly af ! transac;n
  o3urr$04 ,! ^ws 85d+ immly af !
  transac;n o3urr$0 ref] 6! p]iod cov]$
  & d n imply t ! busi;s m/ c1se af !
  sale4 ,": ! abv 3di;n is met1 subsec;n
  #ba7#a7 (! ,,itar applies1 reg>d.s (
  :e!r ! eligi# capital prop]ty 9 "q 0
  acquir$ 0! v5dor 2f or af ,decemb]
  #ca1 #aiga4                         #h
             ,,it-#abc;,r#d           #d
#ab4 ,": subsec;n #ba7#a7 (! ,,itar is
  applica#1 ! 8am.t ''' paya#0 =!
  purpose ( sec;n #ad is deem$ 6be a
  p]c5tage 7! relevant p]c5tage7 (!
  actual am.t paya#4 ,! relevant
  p]c5tage is #dj p]c5t 9 ! cal5d> ye>
  #aigb & 9cr1ses 0#e p]c5tage po9ts =
  ea* full cal5d> ye> "!af up 6& 9clud+
  ! full cal5d> ye> la/ 5d+ 2f !
  transac;n o3urs1 or until x r1*es #ajj
  p]c5t = #aihd & subsequ5t ye>s4 ,!
  ,de"p;t's view ( 8am.t ''' paya#0 z
  set \ 9 #d abv al ext5ds 6am.ts
  subject 6sec;n #ba (! ,,itar4 ,h["e1 =
  purposes ( calculat+ ! 8am.t '''
  paya#0 9 ! case (a transac;n c>ri$ \
  pursuant 6an agree;t call+ = p]iodic
  9/al;ts1 ! relevant p]c5tage (! am.t
  paya# is det]m9$ z (! date (!
  8transac;n0 & rema9s 3/ant ov] ! p]iod
  cov]$ 0! agree;t4
#ac4 ,on ! 4posi;n or expir,n (a gov]n;t
  "r 7z def9$ 9 p>agraph #ba7#c77a7 (!
  ,,itar71 ! deem$ am.t paya# z       #i
             ,,it-#abc;,r#d          a#d
  calculat$ 9 #ab abv may n exce$ !
  excess (! actual am.t ov] ! grt] (3
  7a7 ! co/ (! gov]n;t "r or ! taxpay]'s
    orig9al "r 9 respect (! gov]n;t "r
    7z def9$ 9 p>agraph #ba7#c77b7 (!
    ,,itar7 9curr$ prior 6#aigb 6! ext5t
    t t co/ 0 n o!rwise deduct$ 9 -put+
    ! 9come (! taxpay] = any tax,n ye>1
    &
  7b7 ! fair m>ket value (! taxpay]'s
    specifi$ "r 9 respect (! gov]n;t "r
    7z def9$ 9 p>agraph #ba7#c77c7 (!
    ,,itar7 z at ,decemb] #ca1 #aiga4
  
  ,": ! t]ms (! transac;n call = p]iodic
  pay;ts1 x is ! ,de"p;t's view t ! co/
  & fair m>ket value (! gov]n;t "r
  applica# 6ea* 9/al;t t 2comes paya# is
  t frac;n (! total co/ or fair m>ket
  value t ! am.t (! "picul> 9/al;t is (!
  total proce$s4
#ad4 ,": a p]son :o [n$ a "picul>
  gov]n;t "r ref]r$ 6in subsec;n #ba7#a7
  (! ,,itar at ! 5d ( #aiga1         #aj
             ,,it-#abc;,r#d          b#d
  subsequ5tly 4poses ( x 6a transf]ee )
  :om t p]son does n d1l at >m's l5g?1
  subsec;n #ba7#b.a7 (! ,,itar provides
  t ! rules describ$ 9 #ab abv w 2
  availa# al 6! transf]ee if ! transf]ee
  9 turn 4poses (1 or all[s ! expiry (1
  t "picul> gov]n;t "r or any o!r
  gov]n;t "r acquir$ =! purpose ( e6ect+
  ! 3t9u,n ( "rs t >e sub/anti,y simil>
  6! "rs previ\sly acquir$ "u t "picul>
  gov]n;t "r4
#ae4 ,=! purposes ( sec;n #ba (! ,,itar1
  an amalgam,n 7)9 ! m1n+ ( sec;n #hg (!
  ,act7 ( two or m taxa# ,canadian
  corpor,ns is deem$ 6be a transac;n 2t
  p]sons n d1l+ at >m's l5g?4
--------------------------------------#e
#af4 ,pursuant 6subsec;n #ba7#b7 (!
  ,,itar1 ! am.t deem$ 6h 2come paya# 6!
  v5dor 7see #ab abv7 9 a non->m's l5g?
  transf] ( eligi# capital prop]ty
  2comes ! am.t (! eligi# capital
  exp5diture (! pur*as]1 ?us ! pur*ase
  price 9 excess ( t am.t is n       #aa
             ,,it-#abc;,r#d          a#e
  eligi# = 9clu.n 9 ! cumulative eligi#
  capital (! non->m's l5g? pur*as]4

        ,capital ,divid5d ,a3.t
    
#ag4 ,a corpor,n may 9clude a por;n (!
  proce$s on ! 4posi;n ( eligi# capital
  prop]ty 9 xs capital divid5d a3.t
  0virtue ( p>agraph #hi7#a77b74 ,!
  por;n s 9clud$ is equal 6! am.t 0:
  7a7 "o half (! proce$s 7or "o half (!
    deem$ proce$s "u sec;n #ba (!
    ,,itar7 : 2came due & paya# 6!
    corpor,n 9 rel,n 6! 4posi;n ( all s*
    prop]ty 9 ! p]iod -m5c+ on ! f/ "d
    (! f/ tax,n ye> -m5c+ af ! "t !
    corpor,n la/ 2came a private
    corpor,n & 5d+ af #aiga1 & 5d+ immly
    2f ! "picul> "t ! calcul,n is 2+
    made1
  exce$s
  7b7 ! a7regate (! cumulative eligi#
    capital at ! -m;e;t (! p]iod & "o
                                     #ab
             ,,it-#abc;,r#d          b#e
    half (! eligi# capital exp5ditures
    made 9 ! p]iod4
#ah4 ,s*$ule ;,b illu/rates ! applic,n
  (! provi.ns m5;n$ 9 #ab & #ag abv 9 !
  transi;nal ye>s #aigb 6#aihc4

     ,bad ,debts on ,sale ( ,eligi#
           ,capital ,prop]ty
    
#ai4 ,": all or "p (a debt t has >is5 on
  ! sale ( eligi# capital prop]ty has
  2come a bad debt 9 a tax,n ye>1 a
  deduc;n 9 respect ( t debt may 2 made
  9 t ye> pursuant 6p>agraph #bj7#a77p7
  6! ext5t t an am.t 9 respect (! debt
  has be5 9clud$ 9 ! 9come (! taxpay]
  0subsec;n #ad7#a74 ,no deduc;n is
  all[$ 9 respect (! am.t (! debt cr$it$
  6! cumulative eligi# capital (!
  busi;s4 ,= tax,n ye>s 5d+ af ,m>* #ca1
  #aigg1 a negative bal.e 9 !
  8cumulative eligi# capital0 at ! 5d (a
  tax,n ye> is 6be 9clud$ 9 ! taxpay]'s
  9come =! ye> 7see #b abv7 & x is   #ac
             ,,it-#abc;,r#d          c#e
  a "q ( fact 6:at ext5t ! am.t 9clud$ 9
  9come repres5ts a debt = purposes (
  p>agraph #bj7#a77p74
#bj4 ,6! ext5t t ! bad debt is n
  deducti# "u p>agraph #bj7#a77p71 x may
  2 deducti# z a capital loss >is+ f !
  applic,n ( subsec;n #ej7#a74 ,h["e1
  subp>agraph #dj7#b77g77;ii7 wd d5y any
  s* deduc;n un.s ! debt 0 9t]e/-be>+4
--------------------------------------#f
     ,am.t ,n ,due until ,lat] ,ye>
    
#ba4 ,": a 4posi;n ( an eligi# capital
  prop]ty 0 9clud$ 9 9come "u ! =m]
  basis 7see #e abv7 & "s "p (! sale
  price is due 9 a lat] ye>1 a res]ve "u
  p>agraph #bj7#a77n7 is n p]mitt$ z !
  sale ( an eligi# capital prop]ty is n
  view$ 0! ,de"p;t z a sale ( prop]ty
  8in ! c\rse (! busi;s04



                                     #ad
                ,av]ag+              a#f
    
#bb4 ,": am.ts 9clud$ 9 ! 9come (
  9dividuals af #aiha 0virtue ( subsec;n
  #ad7#a7 3tribute 6a significant 9cr1se
  9 9come levels ov] e>li] ye>s1 a =w>d
  av]ag+ elec;n 7sec;n #abj.a7 may 2
  b5eficial4 ,prior 6#aihb ! g5]al
  av]ag+ provi.ns ( sec;n #aah may h
  appli$ 9 s* situ,ns4 ,! deduc;n 9
  respect ( pay;ts made 0an 9dividual =!
  pur*ase ( an 9come av]ag+ annu;y
  3tract has be5 phas$ \ &1 subject 6"s
  transi;nal rules1 is no l;g] availa#
  af ,novemb] #ab1 #aiha4

            ,t]m9al ,all[.e
    
#bc4 ,a taxpay] :o has c1s$ 6c>ry on a
  busi;s is 5titl$ 6claim a deduc;n =!
  bal.e (! cumulative eligi# capital 9
  respect ( t busi;s 9 a3ord.e )
  subsec;n #bd7#a74 ,subp>agraph
  #ci7#a77b77;ii7 precludes claims =
  capital losses on ! 4posi;n (      #ae
             ,,it-#abc;,r#d          b#f
  eligi# capital prop]ty :e!r or n !
  busi;s has c1s$4 ,=a detail$ 4cus.n (
  ? topic1 ref] 6,,it-#cac;,r4

      ,eligi# ,capital ,prop]ty (a
            ,dec1s$ ,taxpay]
    
#bd4 ,! /atus ( gdwill & o!r eligi#
  capital prop]ty on ! d1? (a taxpay] &!
  rules applica# 6circum/.es ": eligi#
  capital prop]ty (a dec1s$ taxpay] is
  acquir$ 0ano!r p]son >e 3sid]$ 9
  ,,it-#cdd4

,transcrib]'s note3
  7,page #g1 blank page7







                                     #af
              ,s*$ule ;,a             #h
    
      ,cumulative ,eligi# ,capital
     ,example ( ,calcul,n 7applica#
       any "t af ,m>* #ca1 #aigg7
    
  ,assume ! taxpay] -m;ed busi;s on
,april #a1 #aige1 & has a ,m>* #ca ye>
5d4 ,z a result1 ! special transi;nal
rules >e n applica#4

,transcrib]'s note3
  7,! foll[+ is set-up 9 six columns4
  ,column #a3 ,mon?/,ye>
  ,column #b3 ,tax,n ,ye>
  ,column #c3 ,ref];e
  ,column #d3 ,debit 4#
  ,column #e3 ,cr$it 4#
  ,column #f3 ,bal.e 4#
  
  ,only ! columns ) 9=m,n w 2 9dicat$4

  ,note ! pages #i1 #aa & #ac >e ! fr5*
  v].n ( pages #h1 #aj & #ab7
                                     #ag
           #aigf ,tax,n ,ye>         a#h
    
,mon?/,ye>3 #d-ge
,op5+ bal.e
,bal.e3 ,,nil

,mon?/,ye>3 #f-ge
,pur*ase ( ,eligi# ,capital ,prop]ty
  7,,ecp7 = 4#h1jjj
,ref];e3 #ad7#e77a77;i7
,debit3 4#d1jjj
,bal.e3 4#d1jjj

,mon?/,ye>3 #c-gf
#aigf ,deduc;n at #aj@3p
,ref];e3 #ad7#e77a77;ii7
,cr$it3 4#djj
,bal.e3 4#c1fjj

           #aigg ,tax,n ,ye>
    
,mon?/ye>3 #c-gg
#aigg ,deduc;n at #aj@3p
,ref];e3 #ad7#e77a77;iii7
,cr$it3 4#cfj                        #ah
             ,,it-#abc;,r#d          b#h
,bal.e3 4#c1bdj

           #aigh ,tax,n ,ye>
    
,mon?/,ye>3 #d-gg
,sale ( ,,ecp = 4#g1jjj
,ref];e3 #ad7#e77a77;iv77,a7
,less--sell+ exp4 4#ejj
,ref];e3 #ad7#e77a77;iv77,b7
,"o-half ( 4#f1ejj
,ref];e3 #ad7#e77a77;iv7
,cr$it3 4#c1bej
,bal.e3 7#aj7

,mon?/,ye>3 #c-gh
,a4$ 6,9come "u ss#ad7#a7
,ref];e3 #ad7#e77a77;ii7
,debit3 4#aj
,bal.e3 4#j

           #aigi ,tax,n ,ye>
    
,mon?/,ye>3 #f-gh
,pur*ase ( ,,ecp = 4#fj1jjj          #ai
             ,,it-#abc;,r#d          c#h
,ref];e3 7#e77a77;i7
,debit3 4#cj1jjj
,bal.e3 4#cj1jjj

,mon?/,ye>3 #c-gi
#aigi ,deduc;n at #aj@3p
,ref];e3 #ad7#e77a77;iii7
,cr$it3 4#c1jjj
,bal.e3 4#bg1jjj

           #aihj ,tax,n ,ye>
    
,mon?/,ye>3 #f-gi
,ca% ,sale ( ,,ecp = 4#hj1jjj
,ref];e3 #ad7#e77a77;iv77,a7
,less3 sell+ exp4 #e1jjj
,ref];e3 #ad7#e77a77;iv77,b7
,"o-half ( 4#ge1jjj
,ref];e3 #ad7#e77a77;iv7
,cr$it3 4#cg1ejj
,bal.e3 74#aj1ejj7

,mon?/,ye>3 #c-hj
,a4$ 69come "u ss #ad7#a7            #bj
             ,,it-#abc;,r#d          d#h
,ref];e3 #ad7#e77a77;ii7
,debit3 4#aj1ejj
,bal.e3 ,,nil

,mon?/,ye>3 #c-hj 7,am5d$ return7
,ex*ange ( ,prop]ty elec;n--para
  #ad7#f77a7 7"o-half ( 4#ge1jjj
  exclud$7
,ref];e3 #ad7#e77a77;iv7
,cr$it3 74#cg1ejj7
,bal.e3 4#cg1ejj
-------------------------------------#aj
,mon?/,ye>3 #c-hj 7,am5d$ return7
,9come 9clu.n "u ss #ad7#a7 rev]s$
,ref];e3 #ad7#e77a77;ii7
,debit3 74#aj1ejj7
,bal.e3 4#bg1jjj

,mon?/,ye>3 #c-hj
#aihj ,deduc;n at #aj@3p
,ref];e3 #ad7#e77a77;iii7
,cr$it3 4#b1gjj
,bal.e3 4#bd1cjj
                                     #ba
           #aiha ,tax,n ,ye>        a#aj
    
,mon?/,ye>3 #d-hj
,pur*ase ( replace;t ,,ecp = 4#ajj1jjj
,ref];e3 #ad7#e77a77;i7
,debit3 4#ej1jjj
,bal.e3 4#gd1cjj

,mon?/,ye>3 #d-hj
,"o-half ( elect$ am.t f #f-gi sale--
  para #ad7#f77b7
,ref];e3 #ad7#e77a77;iv7
,cr$it3 4#cg1ejj
,bal.e3 4#cf1hjj

,mon?/,ye>3 #a-ha
,9/al;t sale ( ,,ecp = 4#abj1jjj
7,note #a7
,am.t due & ,paya# 4#fj1jjj
,ref];e3 #ad7#e77a77;iv77,a7
,less3 sell+ exp4 4#f1jjj
,ref];e3 #ad7#e77a77;iv77,b7


                                     #bb
             ,,it-#abc;,r#d         b#aj
,"o-half ( 4#ed1jjj
,ref];e3 #ad7#e77a77;iv7
,cr$it3 4#bg1jjj
,bal.e3 4#i1hjj

,mon?/,ye>3 #c-ha
#aiha ,deduc;n at #aj@3p
,ref];e3 #ad7#e77a77;iii7
,cr$it3 4#ihj
,bal.e3 4#h1hbj

           #aihb ,tax,n ,ye>
    
,mon?/,ye>3 #a-hb
,9/al;t pay;t due "o-half ( 4#fj1jjj
,ref];e3 #ad7#e77a77;iv7
,cr$it3 4#cj1jjj
,bal.e3 74#ba1ahj7

,mon?/,ye>3 #c-hb
,a4$ 6,9com "u ss4 #ad7#a7
,ref];e3 #ad7#e77a77;ii7
,debit3 4#ba1ahj
,bal.e3 4#j                          #bc
             ,,it-#abc;,r#d         c#aj
,,note #a3
  ,taxpay] sold ,,ecp pur*as$ 9 #aihj =
  4#abj1jjj paya# z foll[s3
,sale -plet$ & d[n pay;t rcvd on
 """"""""""""" ,janu>y
 """"""""""""" #ca1 #aiha 4#fj1jjj
,annual 9/al;t ,janu>y
 """"""""""""" #ca1 #aihb 4#fj1jjj
 """"""""""""""""""""""" 4#abj1jjj
-------------------------------------#ab
              ,s*$ule ;,b
    
     ,4posi;n ( ,proce$s on ! ,sale
     ( an ,eligi# ,capital ,prop]ty
     9 ,transi;nal ,ye>s #aigb-aihc
    
,assump;ns3
  7#a7 ,! am.t paya# 6! taxpay] on ! ca%
    sale (! eligi# capital prop]ty is
    4#ajj1jjj4
  7#b7 ,! am.t _h 2come paya# 8in
    respect (a busi;s c>ri$ on 0hm "?\t
    ! p]iod -m5c+ ,janu>y #a1 #aigb &
                                     #bd
             ,,it-#abc;,r#d         a#ab
    5d+ immly af ! transac;n0 z provid$
    0sec;n #ba (! ,,itar4
  
,transcrib]'s note3
  7,! foll[+ is set-up 9 ?irte5 columns4
  ,column #a 2+ #aigb 6column #ac 2+
  #aihd : is 9 a box47

,a4 ,am.t paya# 6a taxpay] "u assump;ns
  #a & #b abv z modifi$ 0subsec;n
  #ba7#a7 (! ,,itar
#aigb 4#dj1jjj
#aigc 4#de1jjj
#aigd 4#ej1jjj
#aige 4#ee1jjj
#aigf 4#fj1jjj
#aigg 4#ee1jjj
#aigh 4#gj1jjj
#aigi 4#ge1jjj
#aihj 4#hj1jjj
#aiha 4#he1jjj
#aihb 4#ij1jjj
#aihc 4#ie1jjj
#aihd ,n/,a                          #be
             ,,it-#abc;,r#d         b#ab
,b4 ,eligi# capital am.t--
  p] subsec;n #ad7#a7
#aigb 4#bj1jjj
#aigc 4#bb1ejj
#aigd 4#be1jjj
#aige 4#bg1ejj
#aigf 4#cj1jjj
#aigg 6#aihc 4#j
  p] subp>agraphe #ad7#e77a77;iv7
#aigb 6#aigf --
#aigg 4#cb1ejj
#aigh 4#ce1jjj
#aigi 4#cg1ejj
#aihj 4#dj1jjj
#aiha 4#db1ejj
#aihb 4#de1jjj
#aihc 4#dg1ejj
#aihd 4#ej1jjj

,c4 ,cumulative eligi# capital immly 2f
  ! am.t 9 ;,a abv 2came paya# 7assum$
  6be ,nil7
#aigb 6#aihd 4#j
                                     #bf
             ,,it-#abc;,r#d         c#ab
,d4 ,am.t 6be 9clud$ 9 9come 7;,b m9us
  ;,c7
#aigb 4#bj1jjj
#aigc 4#bb1ej
#aigd 4#be1jjj
#aige 4#bg1ejj
#aigf 4#cj1jjj
#aigg 4#cb1ejj
#aigh 4#ce1jjj
#aigi 4#cg1ejj
#aihj 4#dj1jjj
#aiha 4#db1ejj
#aihb 4#de1jjj
#aihc 4#dg1ejj
#aihd 4#ej1jjj

,e4 ,am.t 6be 9clud$ z "p ( capital
  divid5d a3.t p] subp>agraph
  #hi7#a77b77;iii7 7i4e4 #ajj@3p ( ;,d7
#aigb 4#bj1jjj
#aigc 4#bb1ejj
#aigd 4#be1jjj
#aige 4#bg1ejj
#aigf 4#cj1jjj                       #bg
             ,,it-#abc;,r#d         d#ab
#aigg 4#cb1ejj
#aigh 4#ce1jjj
#aigi 4#cg1ejj
#aihj 4#dj1jjj
#aiha 4#db1ejj
#aihb 4#de1jjj
#aihc 4#dg1ejj
#aihd 4#ej1jjj















                                     #bh