,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,CAPITAL ,CO/ ,ALL[.E--,PROCE$S (
  ,4POSI;N ( ,DEPRECIA# ,PROP]TY
,NUMB]3 ,,IT-#BBJ;,R#B
,DATE3 ,MAY #BE1 #AIIJ
,REF];E3 ,SUBSEC;N #AC7#BA7 & 7#BA.A7
  7,AL SEC;N #FH1 SUBSEC;NS #BJ7#D71
  #CI7#A71 #EJ7#A7 & #BDH7#A7 DEF9I;N (
  8,CO/ ,AM.T0 & P>AGRAPHS #AB7#A77;I71
  #DJ7#A77B7 & #ED7C7 & 7H7 (! ,ACT2
  P>AGRAPH #AAJB7#A77C7 (! ,REGUL,NS &
  P>AGRAPH #BJ7#A77A7 (! ,9COME ,TAX
  ,APPLIC,N ,RULES1 #AIGA 7,,ITAR77





                                      #A
               ,APPLIC,N             A#A
    
  ,? BULLET9 C.ELS & REPLACES ,9T]PRET,N
,BULLET9 ,,IT-#BBJ;,R DAT$ ,SEPTEMB] #H1
#AIHJ &! ,SPECIAL ,REL1SE "!TO DAT$
,JUNE #E1 #AIHD4 ,CURR5T REVI.NS >E
DESIGNAT$ 0V]TICAL L9ES4

                ,SUMM>Y
    
  ,? BULLET9 4CUSSES ! TAX IMPLIC,NS
9H]5T 9 ! 4POSI;N ( DEPRECIA# PROP]TY F
! P]SPECTIVE ( BO? ! RECAPTURE ( CAPITAL
CO/ ALL[.E & CAPITAL GA9S4 ,! RESULTS (A
4POSI;N = PROCE$S 9 EXCESS (! CAPITAL
CO/ (A DEPRECIA# PROP]TY >E EXPLA9$1 Z
IS ! M1N+ (! T]MS 84POSI;N ( PROP]TY0 &
8PROCE$S ( 4POSI;N ( PROP]TY0 &! E6ECT
"!ON ( V>I\S RELAT$ DEEM+ PROVI.NS (!
,ACT4 ,AL EXPLA9$ >E ! RESULTS T O3UR :5
A RELAT$ DEBT 2COMES BAD1 ! APPLIC,N (
SEC;N #FH :5 A SALE 9VOLVES DEPRECIA#
PROP]TIES ( TWO DI6]5T CLASSES OR
DEPRECIA# PROP]TIES & "S?+ ELSE )! TOTAL
3SID],N EXPRESS$ 9 "O LUMP SUM1 &!    #B
             ,,IT-#BBJ;,R#B          B#A
DEEM+ PROVI.NS ( SUBSEC;N #AC7#BA.A7 ":
A BUILD+ IS 4POS$ ( AT A LOSS4

          ,4CUS.N & ,9T]PRET,N
    
#A4 ,A 4POSI;N ( DEPRECIA# PROP]TY MADE
  AF ,DECEMB] #CA1 #AIGA IS SUBJECT 6!
  PROVI.NS (! ,ACT D1L+ ) CAPITAL GA9S &
  LOSSES4 ,": ANY DEPRECIA# PROP]TY IS
  4POS$ (= PROCE$S 9 EXCESS (! CAPITAL
  CO/ 6! TAXPAY]1 T 4POSI;N MAY GIVE
  RISE 6A CAPITAL GA9 Z DET]M9$
  0P>AGRAPH #CI7#A77A7 SUBJECT 6!
  SPECIAL TRANSI;NAL RULES PROVID$
  0SEC;N #BJ (! ,,ITAR4 ,H["E1 ANY LOSS
  ON ! 4POSI;N ( DEPRECIA# PROP]TY IS
  SPECIFIC,Y EXCLUD$ F A TAXPAY]'S
  CAPITAL LOSS 0P>AGRAPH #CI7#A77B7 & Z
  A RESULT NO DEDUC;N IS P]MITT$ = S*
  LOSSES4
#B4 ,! T]MS 84POSI;N ( PROP]TY0 &
  8PROCE$S ( 4POSI;N ( PROP]TY0 >E DEF9$
  0SUBSEC;N #AC7#BA7 = PURPOSES ( SEC;NS
  #AC & #BJ &! REGUL,NS MADE "U       #C
             ,,IT-#BBJ;,R#B          C#A
  P>AGRAPH #BJ7#A77A7 APPLICA# 6PROVI.NS
  D1L+ ) DEPRECIA# PROP]TY1 & 0SEC;N #ED
  =! PURPOSE ( SUBDIVI.N ;C ( ,DIVI.N
  ;,B ( ,"P ;,I (
--------------------------------------#B
  ! ,ACT APPLICA# 6! 4POSI;N ( CAPITAL
  PROP]TY 79CLUD+ DEPRECIA# PROP]TY74 ,9
  BO? CASES1 A 4POSI;N 9CLUDES ANY
  TRANSAC;N OR EV5T 5TITL+ A TAXPAY]
  6PROCE$S ( 4POSI;N ( PROP]TY4 ,^!
  PROVI.NS1 : >E N ALL-9CLUSIVE1 D N
  EXCLUDE ! POSSIBIL;Y T "! MAY 2 O!R
  CIRCUM/.ES 9 : A 4POSI;N TAKES PLACE1
  NOR D !Y EXCLUDE ! POSSIBIL;Y T "! MAY
  2 O!R =MS ( PROCE$S ( 4POSI;N4 ,9
  C]TA9 CIRCUM/.ES1 ! 4POSI;N OR !
  PROCE$S ( 4POSI;N ( DEPRECIA# PROP]TY
  MAY 2 DET]M9$ 0SPECIAL PROVI.NS 9 !
  ,ACT4 ,! ,APP5DIX LI/S "S ( ^!
  PROVI.NS &! 9T]PRET,N BULLET9S ISSU$
  AT ? DATE T PROVIDE DETAILS ( _!
  APPLIC,N4

                                      #D
              ,BAD ,DEBTS            A#B
    
#C4 ,SUBSEC;N #BJ7#D7 MAY 2 APPLICA# 9
  C]TA9 CASES ": A TAXPAY] HAS 4POS$ (
  DEPRECIA# PROP]TY 7O!R ?AN A TIMB]
  RES\RCE PROP]TY7 &! PROCE$S ( 4POSI;N
  H1 PURSUANT 6SEC;N #AC1 BE5 CR$IT$ 6!
  RELEVANT CLASS4 ,9 ! EV5T T "P OR ALL
  ( ^? PROCE$S IS E/ABLI%$ 0! TAXPAY] 6H
  2COME A BAD DEBT 9 ! YE>1 SUBSEC;N
  #BJ7#D7 PROVIDES =A DEDUC;N 9 -PUT+
  9COME =! YE>4 ,9 S* CASES1 ! TAXPAY]
  MAY DEDUCT ! LESS] (
  A7 ! AM.T (! BAD DEBT [+ 6! TAXPAY]1 &
  B7 ! AM.T1 IF ANY1 0: ! TAXPAY]'S
    CAPITAL CO/ (! PROP]TY EXCE$S ANY
    AM.TS ACTU,Y R1LIZ$ 0! TAXPAY] ON
    A3.T (! PROCE$S ( 4POSI;N4
  
  ,9 A4I;N1 ! BAD DEBT XF IS DEEM$
  0SUBSEC;N #EJ7#A7 6H BE5 4POS$ ( AT !
  5D (! YE> & 6H BE5 REACQUIR$ IMMLY
  "!AF AT A CO/ ( NIL4 ,6! EXT5T T !
  LOSS F ! DEEM$ 4POSI;N (! BAD DEBT1
  CALCULAT$ 9 A3ORD.E )! PROVI.NS (   #E
             ,,IT-#BBJ;,R#B          B#B
  P>AGRAPH #DJ7#A77B71 HAS N BE5 DEDUCT$
  "U SUBSEC;N #BJ7#D71 T LOSS MAY
  3/ITUTE A CAPITAL LOSS4 ,": ! DEBT
  >OSE F A NON->M'S L5G? 4POSI;N1 SEE !
  CURR5T V].N ( ,,IT-#AEI1 ,CAPITAL
  ,DEBTS ,E/ABLI%$ 6BE ,BAD ,DEBTS4 ,!
  PROVI.NS ( SUBSEC;N #BJ7#D7 APPLY ONLY
  ": AN AM.T IS UNCOLLECTI#1 N ": X IS
  M]ELY A D\BT;L A3.T4 ,": "! IS A LAT]
  RECOV]Y ( "P OR ALL (! BAD DEBT =! =M]
  PROCE$S ( 4POSI;N (! DEPRECIA#
  PROP]TY1 P>AGRAPH #AB7#A77;I7 9CLUDES
  ! AM.T S RECOV]$ 9 ! TAXPAY]'S 9COME
  6! EXT5T T ? AM.T HAS BE5 DEDUCT$ "U
  SUBSEC;N #BJ7#D7 9 -PUT+ ! TAXPAY]'S
  9COME =A PREC$+ TAX,N YE>4 ,FUR!RMORE1
  ! AM.T RECOV]$ 3/ITUTES A GA9 ON A
  4POSI;N ( PROP]TY HAV+ A NIL CO/ BASE
  &1 6! EXT5T T ! AM.T IS N REQUIR$ 6BE
  9CLUD$ 9 9COME 0P>AGRAPH #AB7#A77I71 X
  IS A CAPITAL GA9 SUBJECT 6! PROVI.NS
  (! ,ACT D1L+ ) S* GA9S4

                                      #F
             ,-B9$ ,3SID],N          C#B
    
#D4 ,! PROVI.NS ( SEC;N #FH1 Z X A6ECTS
  DEPRECIA# PROP]TY1 C APPLY 63SID],N =1
--------------------------------------#C
  7A7 BO? DEPRECIA# & NON-DEPRECIA#
    PROP]TY1
  7B7 DEPRECIA# PROP]TIES 9CLUD$ 9 TWO
    OR M PRESCRIB$ CLASSES1 OR
  7C7 DEPRECIA# PROP]TY & "S?+ O!R ?AN
    PROP]TY1 S* Z S]VICES4

  ,? SEC;N -MONLY APPLIES ": ! :OLE
  3SID],N IS SET =? 9 AN AGREE;T Z A
  LUMP SUM1 OR ": "P (! 3SID],N IS
  ALLOCAT$ 9 A LUMP SUM 6COV] TWO OR M
  ?+S 7PROP]TY OR S]VICES74
#E4 ,EV5 ": A VALUE IS SPECIFI$ 9 AN
  AGREE;T = EA* CLASS OR K9D ( PROP]TY
  OR S]VICE &! TOTAL 3SID],N =! :OLE
  SALE IS R1SONA#1 A RE-ALLOC,N (!
  3SID],N 2T ! V>I\S K9DS OR CLASSES (
  PROP]TY OR S]VICES1 MAY1 N"E!.S1 2
  MADE 0! ,DE"P;T IF "S OR ALL (! VALUES
  SPECIFI$ >E 3SID]$ UNR1SONA#4       #G
             ,,IT-#BBJ;,R#B          A#C
  ,":1 H["E1 ! "PIES 6! AGREE;T >E D1L+
  AT >M'S L5G?1 ! AGREE;T IS PRIMA FACIE
  EVID;E (! R1SONA#;S (! ALLOC,N
  SPECIFI$ "!94 ,A TAXPAY]'S ALLOC,N IS
  FUR!R SUPPORT$ ": "! IS EVID;E ( H>D
  B>GA9+ 2T ! "PIES 9VOLV$ 9 >RIV+ AT T
  ALLOC,N4 ,H["E1 SEE #I 6#AF 2L = -;TS
  ON ! APPLIC,N ( SUBSEC;N #AC7#BA.A74
#F4 ,! PRIME REQUIRE;TS =A DET]M9,N "U
  SEC;N #FH >E1 "!=E1 T X
  7A7 2 R1SONA# 9 REL,N 6! RELATIVE
    POSI;NS (! TWO "PIES 6! TRANSAC;N1
  7B7 2 BAS$ ON ! FACTS (! "PICUL> CASE1
    &
  7C7 H REG>D 6! FAIR M>KET VALUE (!
    PROP]TIES OR S]VICES 9VOLV$4
#G4 ,9 MAK+ A DET]M9,N "U SEC;N #FH1 !
  MATT] IS 6BE 3SID]$ F ! VIEWPO9T ( BO?
  ! V5DOR &! PUR*AS]4 ,= EXAMPLE1 ": L&
  &A BUILD+ >E SOLD =A LUMP SUM1 ! FACT
  T ! PUR*AS] DEMOLI%$ ! BUILD+ %ORTLY
  AF ! SALE IS TAK5 96A3.T4 ,H["E1 !
  DEMOLI;N AL"O IS N REG>D$ Z 3CLUSIVE
  EVID;E T ! SALE PRICE 0 SOLELY 9    #H
             ,,IT-#BBJ;,R#B          B#C
  3SID],N ( L&4 ,": ? SITU,N EXI/S &!
  TOTAL SALE PRICE IS N 9 EXCESS (! FAIR
  M>KET VALUE ( -P>A# L&1 X MAY 2
  R1SONA# 63CLUDE T ! SALE 0 ESS5TI,Y "O
  ( L& & T ! PRICE 0 9 3SID],N ONLY (
  L&1 EV5 ?\< ! BUILD+ 0 / USA# & MAY H
  _H "S VALUE 6! V5DOR4 ,": S* A
  DEMOLI;N TOOK PLACE &! TOTAL SELL+
  PRICE EXCE$$ ! FAIR M>KET VALUE (
  -P>A# L& 2C ! PUR*AS] _H A SPECIAL
  R1SON = WANT+ T "PICUL> PROP]TY1 X MAY
  2 R1SONA# 63CLUDE T ! V5DOR RCVD =!
  BUILD+ AN AM.T EQUAL 6! EXCESS OV] !
  FAIR M>KET VALUE (! L& AL"O1 & T !
  PUR*AS] IS DEEM$ 6H PD T AM.T =!
  BUILD+4 ,IF 9 ^! CIRCUM/.ES ! PUR*AS]
  DEMOLI%$ ! BUILD+ )\T US+ X =!
--------------------------------------#D
  PURPOSE ( GA9+ OR PRODUC+ 9COME1 X IS
  N DEPRECIA# PROP]TY 9 ! PUR*AS]'S H&S
  0R1SON ( P>AGRAPH #AAJB7#A77C7 (!
  ,REGUL,NS &! PUR*AS] IS N 5TITL$
  6CAPITAL CO/ ALL[.E NOR A T]M9AL LOSS
  9 RESPECT ( X4 ,9 ^! LATT]          #I
             ,,IT-#BBJ;,R#B          A#D
  CIRCUM/.ES1 ! DEMOLI;N (! BUILD+ IS
  3SID]$ A 4POSI;N & MAY RESULT 9 A
  CAPITAL LOSS 9 ! PUR*AS]'S H&S4 ,SEE
  AL ! -;TS 9 ! CURR5T V].N ( ,,IT-#ABH4
#H4 ,": ! BUILD+S >E N DEMOLI%$ %ORTLY
  AF ! PUR*ASE1 AG ! FACTS ( EA* CASE W
  DET]M9E :E!R ANY "P (! PRICE 0 9
  RESPECT ( ^? BUILD+S & :E!R ! PROP]TY
  0 DEPRECIA# PROP]TY4 ,9 ? 3NEC;N1 !
  ,DE"P;T W 3SID] V>I\S FACTORS 9CLUD+
  7A7 L5G? ( "T PRIOR 6DEMOLI;N & :E!R !
    BUILD+ 0 9COME PRODUC+1
  7B7 REPAIRS & MA9T5.E 6! BUILD+S1
  7C7 AM.T ( 9COME E>N$1
  7D7 RENEWAL ( L1SES1 IF ANY1 &! L5G?
    (! RENEWAL1 &
  7E7 CO/S ( BR1K+ L1SES1 IF ANY4
  





                                     #AJ
       ,DEEM$ ,PROCE$S ( ,4POSI;N    B#D
               (A ,BUILD+
    
#I4 ,:5 A BUILD+ IS SOLD = PROCE$S T >E
  LESS ?AN XS PROPOR;NATE %>E (!
  UNDEPRECIAT$ CAPITAL CO/ ( XS CLASS1
  SUBSEC;N #AC7#BA.A7 PROVIDES SPECIAL
  RULES 6ALLOCATE PROCE$S ( 4POSI;N 2T
  L& & BUILD+S1 6RE/RICT ! POT5TIAL
  T]M9AL LOSS & POSSIBLY RECAPTURE
  CAPITAL CO/ ALL[.ES PREVI\SLY TAK54
  ,": ! PROCE$S F ! BUILD+ 79CLUD+
  PROCE$S DET]M9$ 0! APPLIC,N ( SEC;N
  #FH7 >E LESS ?AN ! LESS] (! 8CO/ AM.T0
  7SEE #AA 2L7 &! CAPITAL CO/ 6! TAXPAY]
  (! BUILD+ IMMLY 2F XS 4POSI;N1 ! RULES
  9 P>AGRAPH #AC7#B.A77A7 OR 7B7 APPLY4
  ,H["E1 ^! RULES D N APPLY ": ! L& ON :
  ! BUILD+ IS SITUAT$ HAS ALW BE5 [N$ 0A
  P]SON D1L+ AT >M'S L5G? )! [N] (!
  BUILD+4
#AJ4 ,! SPECIAL RULE "U P>AGRAPH
  #AC7#BA.A77A7 APPLIES ": BO? ! 4POSI;N
  (! BUILD+ &! L& SUBJAC5T TO1 OR IMMLY
  3TIGU\S 6& NEC =! USE (! BUILD+    #AA
             ,,IT-#BBJ;,R#B          C#D
  7! 8RELAT$ L&071 TAKES PLACE 9 ! SAME
  TAX,N YE>1 AL? N NECESS>ILY
  SIMULTANE\SLY4 ,": ! RELAT$ L& IS
  4POS$ ( 0A P]SON N D1L+ AT >M'S L5G?
  )! BUILD+ [N]1 ? RULE APPLIES :5 !
  4POSI;N O3URS )9 A P]IOD CO9CID+ )!
  DUR,N (! BUILD+ [N]'S TAX,N YE> T
  5COMPASSES ! "T ( 4POSI;N (! BUILD+4
  ,"U ? RULE1 -B9$ PROCE$S >E -PULSORILY
  ALLOCAT$ 2T L& & BUILD+1 PRIM>ILY
  65SURE T NO LOSS W 2 CLAIM$ 9 RESPECT
  (! 4POSI;N (! BUILD+ UN.S X IS DET]M9$
  T NO GA9 IS REPORT$ ON ! L& -PON5T4
--------------------------------------#E
#AA4 ,9 APPLY+ ? RULE X IS F/ NEC 6-PUTE
  ! CO/ AM.T ( BO? ! L& &! BUILD+4 ,CO/
  AM.T IS DEF9$ 9 SUBSEC;N #BDH7#A7
  6M1N1 9 ! CASE ( L&1 XS ADJU/$ CO/
  BASE &1 9 ! CASE (A BUILD+1 S*
  BUILD+'S PROPOR;NATE %>E (!
  UNDEPRECIAT$ CAPITAL CO/ (! CLASS T !
  CAPITAL CO/ (! BUILD+ IS (! CAPITAL
  CO/ ( ALL BUILD+S 9 ! CLASS4
                                     #AB
             ,,IT-#BBJ;,R#B          A#E
#AB4 ,! PROCE$S ( 4POSI;N (! RELAT$ L&
  >E !N DEEM$ 6BE ! AM.T 0: ! -B9$
  PROCE$S ( 4POSI;N (! L& & BUILD+ EXCE$
  ! DEEM$ PROCE$S ( 4POSI;N (! BUILD+ 7Z
  -PUT$ 9 #AC OR #AD 2L74 ,! CO/ 6!
  PUR*AS] (! L& IS DET]M9$ )\T REF];E
  6SUBSEC;N #AC7#BA.A74
#AC4 ,) RESPECT 64POSI;NS 2F ,MAY #AJ1
  #AIHE 79CLUD+ A 4POSI;N AT ANY "T MADE
  PURSUANT 6! T]MS ( AN AGREE;T 9 WRIT+
  5T]$ 962F T DATE71 ! PROCE$S ( 4POSI;N
  (! BUILD+1 CALCULAT$ IMMLY PRIOR 6!
  4POSI;N1 >E DEEM$ 6BE ! LESS] (
  7A7 ! -B9$ PROCE$S ( L& & BUILD+ Z
    O!RWISE DET]M9$1 REDUC$ 0! LESS] (
    7;I7 ! CO/ AM.T (! L& 6! V5DOR1 &
    7;II7 ! FAIR M>KET VALUE (! L&1 &
  7B7 ! GRT] (
    7;I7 ! FAIR M>KET VALUE (! BUILD+1 &
    7;II7 ! CO/ AM.T (! BUILD+4
#AD4 ,) RESPECT 64POSI;NS O3URR+ AT A
  "PICUL> "T AF ,MAY #I1 #AIHE ! PROCE$S
  ( 4POSI;N (! BUILD+ >E DEEM$ 6BE !
  LESS] (                            #AC
             ,,IT-#BBJ;,R#B          B#E
  7A7 ! AM.T1 IF ANY1 0:
    7;I7 ! A7REGATE (
      ,A4 ! FAIR M>KET VALUE (! BUILD+
        AT ! "PICUL> "T1 &
      ,B4 ! FAIR M>KET VALUE (! L& IMMLY
        2F XS 4POSI;N
    EXCE$S
    7;II7 ! LESS] (
      ,A4 ! FAIR M>KET VALUE (! L& IMMLY
        2F XS 4POSI;N1 &
      ,B4 ! CO/ AM.T O!RWISE DET]M9$
        LESS CAPITAL GA9S >IS+ ^U
        4POSI;NS (! L& )9 ! ?REE PREC$+
        YE>S 2T ! TAXPAY] & NON->M'S
        L5G? "PIES1 &
  7B7 ! GRT] (
    7;I7 ! FAIR M>KET VALUE (! BUILD+ AT
      ! "PICUL> "T1 &
    7;II7 ! LESS] (
      ,A4 ! CO/ AM.T (! BUILD+1 &
--------------------------------------#F
      ,B4 ! CAPITAL CO/ 6! TAXPAY] (!
        BUILD+ IMMLY 2F XS 4POSI;N4
                                     #AD
             ,,IT-#BBJ;,R#B          A#F
#AE4 ,": ! L& >EA 4POS$ ( EXCE$S T NEC
  =! USE (! BUILD+1 P>AGRAPH
  #AC7#BA.A77A7 IS 3SID]$ 6APPLY ONLY 9
  RESPECT (! POR;N T IS NEC =! USE (!
  BUILD+4 ,9 S* CASES1 A R1SONA# ALLOC,N
  (! TOTAL PROCE$S &! TOTAL CO/ = TAX
  PURPOSES (! L& 2T ! NEC &! SUP]FLU\S
  POR;NS (! L& IS REQUIR$ =! CALCUL,NS
  DESCRIB$ ABV4
#AF4 ,": ! RELAT$ L& IS N 4POS$ ( 9 !
  SAME TAX,N YE> Z ! BUILD+ B 0 [N$ AT
  ANY "T 2F ! 4POSI;N (! BUILD+ 0!
  TAXPAY] OR 0A P]SON ) :OM ! TAXPAY] 0
  N D1L+ AT >M'S L5G?1 P>AGRAPH
  #AC7#BA.A77B7 PROVIDES A SECOND RULE4
  ,9 ? CASE1 ": ! TAXPAY] IS AN
  9DIVIDUAL1 ! DEEM$ PROCE$S ( 4POSI;N
  (! BUILD+ = PURPOSES ( DET]M9+ !
  REMA9+ UNDEPRECIAT$ CAPITAL CO/ (!
  CLASS 7OR ! T]M9AL LOSS IF ! BUILD+ IS
  ! LA/ PROP]TY 9 ! CLASS7 >E ! PROCE$S
  O!RWISE DET]M9$ PLUS "O-QU>T] 7"O-HALF
  = FISCAL P]IODS 5D+ 2F #AIHH & "O-?IRD
  = FISCAL P]IODS 5D+ 9 #AIHH &      #AE
             ,,IT-#BBJ;,R#B          B#F
  #AIHI7 (! EXCESS (! CO/ AM.T 7SEE #AA
  ABV7 (! BUILD+ 7OR XS FAIR M>KET
  VALUE1 IF T IS GRT]7 OV] ! PROCE$S
  O!RWISE DET]M9$4 ,": ! TAXPAY] IS A
  CORPOR,N1 ! -+-9TO-=CE PROVI.NS (
  #AIHH1 C4 #EE1 ,S4#F7#AI7 =
  SUBP>AGRAPH #AC7#BA.A77B77;II7 %D 2
  REF]R$ 6IN ORD] 6DET]M9E ! DEEM$
  PROCE$S ( 4POSI;N (! BUILD+ =!
  PURPOSES (! SECOND RULE M5;N$ ABV4 ,!
  PROCE$S ( 4POSI;N (! L& >E N REDUC$ "U
  ? RULE4

,TRANSCRIB]'S NOTE3
  7,PAGE #G1 BLANK PAGE7








                                     #AF
                ,APP5DIX              #H
    
,TRANSCRIB]'S NOTE3
  7,! APP5DIX 0 SET-UP 9 ?REE COLUMNS4
  ,COLUMN #A3 ,REF];E 6! ,9COME ,TAX
    ,ACT
  ,COLUMN #B3 ,DESCRIP;N
  ,COLUMN #C3 ,,IT-,BULLET9 SEE CURR5T
    V].N
  
  ,X W R1D1 ! REF];E NUMB]1 DESCRIP;N &!
  ,,IT-,BULLET9 AT ! 5D1 ALL SEP>AT$ 0A
  SEMI-COLON4

  ,PAGES #I & #AA >E ! FR5* V].N (!
  APP5DIX47

#C7B72 ,CAPITAL ,GA9S & ,LOSSES ON
  ,4POSI;N ( ,BUSI;S ,PROP]TY 0AN
  ,9DIVIDUAL2 ,,IT-#ACD
#AC7#BA77C7 ,-P5S,N = ,LOSS ( ,BUSI;S
  ,9COME OR ( ,PROP]TY ,US$ 9 A ,BUSI;S
  ,,IT-#AHB
#AC7#BA77C72 ,4POSI;N--,ABS;E (
  ,3SID],N2 ,,IT-#DFJ                #AG
             ,,IT-#BBJ;,R#B          A#H
#AC7#BA77F72 ,3V].N ( ,PROP]TY F OR
  6,9V5TORY2 ,,IT-#AJB
#AC7#BA77F72 ,3V].N ( ,PROP]TY1 ,O!R ?AN
  ,R1L ,PROP]TY1 F OR 6,9V5TORY2 ,,IT-
  #AJB
#BJ7#A77A72 ,CAPITAL ,CO/ ,ALL[.E--,DATE
  ( ,ACQUISI;N ( ,DEPRECIA# ,PROP]TY2
  ,,IT-#EJ
#BJ7#A77A72 ,CAPITAL ,CO/ ,ALL[.E--
  ,DEPRECIA# ,PROP]TY2 ,,IT-#ABH
#BJ7#A77A72 ,CAPITAL ,CO/ ,ALL[.E--
  ,TAX,N ,YE> ( ,9DIVIDUALS2 ,,IT-#AGB
#BJ7#E72 ,SALE ( ,MORTGAGE ,9CLUD$ 9
  ,PROCE$S ( ,4POSI;N ( ,DEPRECIA#
  ,PROP]TY2 ,,IT-#CBC
#DB2 ,4POSI;NS ( ,CAPITAL ,PROP]TY
  ,SUBJECT 6,W>RANTY1 ,COV5ANT1 ETC42
  ,,IT-#CCJ
#DC2 ,"P ,4POSI;NS2 ,,IT-#BFD
#DC2 ,CAPITAL ,CO/ ,ALL[.E--,"PIAL
  ,4POSI;NS ( ,PROP]TY2 ,,IT-#DAH
#DD2 ,EX*ANGES ( ,PROP]TY2 ,,IT-#BEI
#DE2 ,PR9CIPAL ,RESID;E2 ,,IT-#ABJ
                                     #AH
             ,,IT-#BBJ;,R#B          B#H
#EJ7#A72 ,CAPITAL ,DEBTS ,E/ABLI%$ 6BE
  ,BAD ,DEBTS2 ,,IT-#AEI
#ED7H72 ,EXPROPRI,NS--,"T & ,PROCE$S (
  ,4POSI;N2 ,,IT-#BGA
#GJ2 ,9T] ,VIVOS ,TRANSF] ( ,F>M
  ,PROP]TY 6,*2 ,,IT-#BFH
#GJ2 ,9T]G5],NAL ,TRANSF]S ( ,F>M
  ,PROP]TY ON ,D1?2 ,,IT-#CDI
#GJ2 ,BUY-,SELL ,AGREE;TS2 ,,IT-#ADJ
#GD2 ,TRANSF] ( ,PROP]TY 6A ,SP\SE2
  ,,IT-#BEH
#GD.A7#A72 ,9T]SP\SAL ,TRANSF]S & ,LOANS
  ( ,PROP]TY ,MADE ,AF ,MAY #BB1 #AIHE2
  ,,IT-#EAA
#GD.A7#B72 ,TRANSF]S & ,LOANS ( ,PROP]TY
  ,MADE AF ,MAY #BB1 #AIHE 6A ,RELAT$
  ,M9OR2 ,,IT-#EAJ
-------------------------------------#AJ
#GI2 ,MORTGAGE ,=ECLOSURES & ,3DI;NAL
  ,SALES ,REPOSSES.NS2 ,,IT-#EJE
#HE2 ,TRANSF] ( ,PROP]TY 6A ,CORPOR,N "U
  ,SUBSEC;N #HE7#A72 ,,IT-#BIA

                                     #AI
             ,,IT-#BBJ;,R#B         A#AJ
#ABE7#A72 ,! ,SMALL ,BUSI;S ,DEDUC;N--
  ,9COME F AN ,ACTIVE ,BUSI;S1 A
  ,SPECIFI$ ,9VE/;T ,BUSI;S &A ,P]SONAL
  ,S]VICES ,BUSI;S2 ,,IT-#GC
,,ITAR #BJ7#A72 ,CAPITAL ,PROP]TY ,[N$
  ON ,DECEMB] #CA1 #AIGA--,DEPRECIA#
  ,PROP]TY2 ,,IT-#BAG
















                                     #BJ