CRA considers that the ACB grind under subsection 84.1(2.1) applies notwithstanding a taxpayer’s intention not to claim a capital gains exemption

In 2015-0594461E5, the CRA indicated that a taxpayer’s intention not to claim a capital gains exemption is irrelevant to the application of the ACB grind under subsection 84.1(2.1) of the Income Tax Act (Canada) which deems a taxpayer to have taken a capital gains exemption in the event the taxpayer claims a subparagraph 40(1)(a)(iii) reserve on the disposition of shares to which section 84.1 applies.

Prepared by: Florence Sauve

Florence Sauve is a partner in the Toronto office of Thorsteinssons LLP. Florence’s practice focuses on all aspects of taxpayer representation and tax litigation and also includes personal and corporate tax planning.  She assists her clients in managing and resolving… more »

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