,CANADA ,CU/OMS #A & ,REV5UE ,AG5CY ,9COME ,TAX ,9T]PRET,N ,BULLET9 ,SUBJECT3 ,9COME ,TAX ,ACT ,9T]-,VIVOS ,GIFTS ( ,CAPITAL ,PROP]TY 6,9DIVIDUALS ,DIRECTLY OR ,"? ,TRU/S ,NUMB]3 ,,IT-#BJI;,R ,DATE3 ,FEBRU>Y #AB1 #AIIF ,REF];E3 ,SPECIAL ,REL1SE ,APPLIC,N ,? ,SPECIAL ,REL1SE REVISES ,9T]PRET,N ,BULLET9 ,,IT-#BJI;,R DAT$ ,MAY #AH1 #AIHC4 ,BULLET9 ,REVI.NS #A4 ,P>AGRAPH #D (! BULLET9 IS REVIS$ = CL>IFIC,N & 6TAKE 963SID],N ! AM5D;T 6! PREAM# ( SUBSEC;N #AJG7#B7 5ACT$ "U ,S4,C4 #AIHH1 C4#EE 7=M]LY ,BILL #A ,,IT-#BJI;,R A#A ;,C-#ACI7 APPLICA# 64TRIBU;NS AF #AIHG4 ,P>AGRAPH #D (! BULLET9 N[ R1DS Z FOLL[S3 #D4 ,! EXAMPLES >E BAS$ ON ! FOLL[+ PR9CIPLES & ASSUMP;NS3 7A7 ,! ,DE"P;T 3SID]S T A SETTLOR &! TRU/ CR1T$ 0! SETTLOR1 &A TRU/ & XS B5EFICI>IES1 OP]ATE AT NON->M'S L5G? UN.S ! FACTS (A "PICUL> SITU,N 9DICATE O!RWISE4 ,! EXAMPLES 9VOLV+ TRU/S ASSUME T ! "PIES 9VOLV$ >E N D1L+ AT >M'S L5G?4 ,^? N 9VOLV+ TRU/S AL ASSUME T ! DONOR & DONEE >E N D1L+ AT >M'S L5G?4 7B7 ,! CAPITAL B5EFICI>Y 7I4E41 A B5EFICI>Y T HAS A CAPITAL 9T]E/ 9 A TRU/7 DID N PUR*ASE AN 9T]E/ 9 ! P]SONAL TRU/4 7C7 ,NO "O HAS MADE AN ELEC;N 6USE ,VALU,N ,"D VALUES PURSUANT 6SUBSEC;N #BF7#G7 (! ,,ITAR4 #B ,,IT-#BJI;,R B#A 7D7 ,": DEPRECIA# PROP]TY IS 2+ TRANSF]R$1 X IS ! ONLY PROP]TY 9 ! CLASS4 7E7 ,! PROVI.NS ( SUBSEC;NS #AJG7#D.A7 & 7#E7 D N APPLY4 #B4 ,P>AGRAPH #E (! BULLET9 IS REVIS$ 6TAKE 963SID],N ! AM5D;T 6! DEF9I;N ( 8CO/ AM.T0 9 SUBSEC;N #BDH7#A7 5ACT$ "U ,S4,C4 #AIID1 C4#G 7=M]LY ,BILL ;,C-#AE7 APPLICA# AF ,MAY #BB1 #AIHE4 ,X AL REFLECTS ! AM5D;T 6! PREAM# ( SUBSEC;N #AJG7#B7 5ACT$ "U ,S4,C4 #AIHH1 C4#EE 7=M]LY ,BILL ;,C-#ACI7 G5],Y APPLICA# 64TRIBU;NS AF #AIHG4 ,! 4CUS.N ( 8SP\SE TRU/0 IS *ANG$ 6CL>IFY T = PURPOSES ( SUBSEC;N #GC7#A7 X IS ! TAXPAY] & SP\SE TRU/ T M/ 2 RESID5T 9 ,CANADA AT ! "T A CAPITAL PROP]TY IS TRANSF]R$ 0! TAXPAY] 6! SP\SE TRU/4 ,F9,Y1 A REF];E ON ! EXT5D$ M1N+ ( 8SP\SE10 APPLICA# AF #AIIB1 IS A4$ Z A RESULT (! 9TRODUC;N ( SUBSEC;N #BEB7#D7 0,S4,C4 #AIID1 C4#G4 #C ,,IT-#BJI;,R C#A ,P>AGRAPH #E (! BULLET9 N[ R1DS Z FOLL[S3 #E4 ,! T]MS 8CO/ AM.T10 8SP\SE TRU/0 & 8SP\SE0 >E EXPLA9$ Z FOLL[S3 7A7 ,CO/ AM.T4 ,PURSUANT 6P>AGRAPHS #AJG7#B77A7 & 7B71 A P]SONAL TRU/ OR PRESCRIB$ TRU/ 4TRIBUTES PROP]TY 6A CAPITAL B5EFICI>Y = PROCE$S ( 4POSI;N EQUAL 6XS CO/ AM.T 6! TRU/1 &! CAPITAL B5EFICI>Y ACQUIRES ! PROP]TY AT A CO/ EQUAL 6! TRU/'S CO/ AM.T PLUS AN A4I;NAL AM.T 9 C]TA9 CASES4 8,CO/ AM.T0 IS /AT$ 9 SUBSEC;N #BDH7#A7 6BE ! ADJU/$ CO/ BASE =A CAPITAL PROP]TY O!R ?AN DEPRECIA# PROP]TY1 &! UNDEPRECIAT$ CAPITAL CO/ 7,,UCC7 =A "PICUL> DEPRECIA# PROP]TY DET]M9$ 0MULTIPLY+ ! ,,UCC (! CLASS 0! PROPOR;N --------------------------------------#B T ! CAPITAL CO/ (! "PICUL> PROP]TY IS (! CAPITAL CO/ ( ALL PROP]TIES (! CLASS N PREVI\SLY 4POS$ (4 #D ,,IT-#BJI;,R A#B ,= PURPOSES (! ABV CALCUL,N1 ! ,,UCC (! CLASS &! CAPITAL CO/ ( EA* "PICUL> PROP]TY (! CLASS N PREVI\SLY 4POS$ ( W NE$ 6BE RE/AT$1 PURSUANT 6P>AGRAPH 7A7 (! DEF9I;N 8CO/ AM.T0 9 SUBSEC;N #BDH7#A71 ": P>AGRAPH #AC7#G77B7 OR 7E7 OR SUBP>AGRAPH #AC7#G77D77;I7 APPLI$ 9 DET]M9+ ! CAPITAL CO/ (A "PICUL> PROP]TY 9 ! CLASS4 7B7 ,SP\SE ,TRU/4 ,A TAXPAY] CR1TES A SP\SE TRU/ =! B5EFIT (! TAXPAY]'S SP\SE 7SUBSEC;N #GC7#A77 ": ! SP\SE IS 5TITL$ 6RCV ALL 9COME (! TRU/ T >ISES 2F ! SP\SE'S D1?1 & ONLY ! SP\SE 7PRIOR 6D1?7 MAY RCV OR O!RWISE OBTA9 ! USE ( ANY (! 9COME OR CAPITAL (! TRU/4 ,BO? ! TAXPAY] &! SP\SE TRU/ M/ 2 RESID5T 9 ,CANADA AT ! "T ! PROP]TY IS TRANSF]R$ 0! TAXPAY] 6! SP\SE TRU/4 ,9 ! EXAMPLES ": A SP\SE TRU/ 4TRIBUTES PROP]TY #E ,,IT-#BJI;,R B#B 6! CAPITAL B5EFICI>Y1 ! ASSUMP;N IS T X IS A 4TRIBU;N PRIOR 6! D1? (! SP\SE :O IS1 "!=E1 ! CAPITAL B5EFICI>Y4 7C7 ,SP\SE4 ,-MON-LAW C\PLES T -E )9 ! 8EXT5D$ M1N+ ( SP\SE0 RULES 9 SUBSEC;N #BEB7#D7 >E TR1T$ Z SP\SES = PURPOSES (! PROVI.NS 4CUSS$ 9 ? BULLET94 ,Z A RESULT (! ABV1 SUBSEC;NS #AC7#G7 & #BEB7#D7 >E A4$ 6! 8,,REF];E0 >EA ON PAGE #A (! BULLET94 #C4 ,9 ORD] 6REFLECT P>AGRAPH #AC7#G77E7 5ACT$ 0,S4,C4 #AIHF1 C4#F 7=M]LY ,BILL ;,C-#HD7 G5],Y APPLICA# ) RESPECT 6PROP]TY ACQUIR$ AF ,MAY #BB1 #AIHE1 EXAMPLE 7#B7 IS MODIFI$ 0REPLAC+ ! TITLE ) 8,A GIFT ( DEPRECIA# PROP]TY PRIOR 6,MAY #BC1 #AIHE0 & 0A4+ EXAMPLE 7#B;A73 #F ,,IT-#BJI;,R C#B 7#B;A7 ,A GIFT ( DEPRECIA# PROP]TY 9 #AIIE ,,ASSUMP;NS ,,CAPITAL CO/ ( DEPRECIA# PROP]TY 6DONOR 4#AJJ.JJ ,,UCC ON DATE ( GIFT 4#GE ,,FMV ON DATE ( GIFT 4#AAJ ,! CAPITAL GA9S DEDUC;N PROVI.NS 9 SEC;N #AAJ.F 7 N US$ 9 RESPECT (! PROP]TY 0! DONOR4 ,RESULTS ,! DONOR HAS DEEM$ PROCE$S ( 4POSI;N ( 4#AAJ & "!=E IS SUBJECT 6TAX ON A CAPITAL GA9 ( 4#AJ & RECAPTURE ( ,,CCA ( 4#BE4 ,REF];E3 #FI7#A77B7 ,=! PURPOSES ( P>AGRAPHS #H7#A77J7 & 7P71 SEC;NS #AC & #BJ & ANY REGUL,NS MADE =! PURPOSE ( P>AGRAPH #BJ7#A77A71 ! DONEE'S CAPITAL CO/ W 2 4#AJG.EJ DET]M9$ Z FOLL[S3 ,REF];E3 #AC7#G77E7 #G ,,IT-#BJI;,R D#B ,CAPITAL CO/ 6DONOR IMMLY 2F ! TRANSF] """""""" 4#AJJ.JJ ,PLUS3 #C OV] #D (! DONOR'S PROCE$S ( 4POSI;N """""""""""""" 4#AAJ LESS ! DONOR'S CAPITAL CO/ IMMLY 2F ! TRANSF] """""""""""" 4#AJJ #C OV] #D MULTIPLI$ 0#AJ """""""""""""""""""""" 4#G.EJ ,DONEE'S CAPITAL CO/ """""" 4#AJG.EJ ,= ALL O!R PURPOSES (! ,ACT1 ! DONEE ACQUIRES ! PROP]TY AT A DEEM$ CAPITAL CO/ ( 4#AAJ4 ,REF];E3 #FI7#A77C7 #D4 ,9 ORD] 6ILLU/RATE ! *ANGE 6P>AGRAPH #BJ7#A77B7 (! ,,ITAR 5ACT$ 0,S4,C4 #AIIE1 C4#C 7=M]LY ,BILL ;,C-#EI7 APPLICA# 6ACQUISI;NS ( PROP]TY AF ,MAY #BB1 #AIHE1 EXAMPLE 7#G7 IS MODIFI$ 0REPLAC+ ! TITLE ) 8,A GIFT ( DEPRECIA# PROP]TY PRIOR 6,MAY #BC1 #AIHE ": ! DONOR OR "S"O N AT >M'S L5G? )! DONOR _H ACQUIR$ ! #H ,,IT-#BJI;,R E#B PROP]TY PRIOR 6#AIGB0 & 0A4+ EXAMPLE 7#G;B73 --------------------------------------#C 7#G;B7 ,A GIFT ( DEPRECIA# PROP]TY 9 ,JANU>Y #AIID ": ! DONOR OR "S"O N AT >M'S L5G? )! DONOR _H ACQUIR$ ! PROP]TY PRIOR 6#AIGB4 ,,ASSUMP;NS ,CAPITAL CO/ ( DEPRECIA# PROP]TY 6DONOR 4#AJJ ,,FMV ON ,VALU,N ,"D 4#AJE ,,UCC ON DATE ( GIFT 4#GE ,,FMV ON DATE ( GIFT 4#AAE ,! DONOR IS AN 9DIVIDUAL 7O!R ?AN A TRU/7 RESID5T 9 ,CANADA4 ,9 -PUT+ TAXA# 9COME1 ! DONOR CLAIMS A CAPITAL GA9S DEDUC;N ( 4#F1 9 RESPECT (! 4POSI;N1 PURSUANT 6SUBSEC;N #AAJ.F7#C74 ,,RESULTS ,"U P>AGRAPH #FI7#A77B7 ! DONOR HAS DEEM$ PROCE$S ( 4POSI;N ( 4#AAE1 : IS CALL$ 8PROCE$S ( 4POSI;N "!( #I ,,IT-#BJI;,R A#C O!RWISE DET]M9$0 9 SUBSEC;N #BJ7#A7 (! ,,ITAR4 ,! DEEM$ PROCE$S ( 4POSI;N "U P>AGRAPH #BJ7#A77A7 >E !N CALCULAT$ Z FOLL[S3 ,REF];E3 #FI7#A77B7 ,CAPITAL CO/ """"""""""""""""""" 4#AJJ ,PROCE$S ( 4POSI;N Z O!RWISE DET]M9$ """" 4#AAE LESS3 ,,FMV ON ,VALU,N ,"D """""""""""""""" 4#AJE """" 4#AJ ,REF];E3 #BJ7#A77,,ITAR7 ,DEEM$ PROCE$S """"""""""""""""" 4#AAJ LESS3 ,CAPITAL CO/ """"""""""""" 4#AJJ ,CAPITAL GA9 """""""""""""""""""" 4#AJ ,! DONOR "!=E IS SUBJECT 6TAX ON ! RECAPTURE ( ,,CCA ( 4#BE & ON 4#A.EJ 7! TAXA# CAPITAL GA9 ( 4#G.EJ LESS ! 4#F CAPITAL GA9S DEDUC;N74 ,! DONEE IS DEEM$ 6ACQUIRE ! DEPRECIA# PROP]TY AT A CAPITAL CO/ ( 4#AAJ = ALL PURPOSES (! ,ACT EXCEPT ": P>AGRAPH #AC7#G77E7 APPLIES4 ,REF];E3 #BJ7#A77B77;I7 7,,ITAR7 #AJ ,,IT-#BJI;,R B#C ,9 S* A CASE ! DONEE'S CAPITAL CO/ = PURPOSES ( P>AGRAPHS #H7#A77J7 & 7P71 SEC;NS #AC & #BJ & ANY REGUL,NS MADE =! PURPOSE ( P>AGRAPH #BJ7#A77A71 W 2 4#AJA.EJ DET]M9$ Z FOLL[S3 ,REF];E3 #AC7#G77E77;I7 ,CAPITAL CO/ 6DONOR IMMLY 2F ! TRANSF] """""""" 4#AJJ.JJ ,PLUS3 #C OV] #D (! DONOR'S PROCE$S ( 4POSI;N """""""""""""" 4#AAJ LESS3 --! DONOR'S CAPITAL CO/ IMMLY 2F ! TRANSF] """"" 4#AJJ --#D OV] #C (! DONOR'S CAPITAL GA9S DEDUC;N 7#D OV] #C #AA ,,IT-#BJI;,R C#C MULTIPLI$ 04#F7 """"""""" 4#H 4#AJH #C OV] #D MULTIPLI$ 0#B """"""""""""""""""""""""""" 4#A.EJ ,DONEE'S CAPITAL CO/ """"""""""""""""""""""""" 4#AJA.EJ #E4 ,! M>G9 REF];ES TO 8#AJG7#B77B70 9 EXAMPLES 7#D71 7#AB7 & 7#AF7 (! BULLET9 >E *ANG$ TO 8#AJG7#B77D740 ,IF Y H ANY -;TS REG>D+ ! MATT]S 4CUSS$ 9 ? SPECIAL REL1SE1 PL1SE S5D !M TO3 ,DIRECTOR1 ,TE*NICAL ,PUBLIC,NS ,DIVI.N ,POLICY & ,LEGISL,N ,BRAN* ,REV5UE ,CANADA #HGE ,H]ON ,ROAD ,OTTAWA ,,ON ,K#A;,A #J;,L#H #AB