Vous consultez une page Web conservée, recueillie par Bibliothèque et Archives Canada le 2007-12-11 à 09:14:22. Il se peut que les informations sur cette page Web soient obsolètes, et que les liens hypertextes externes, les formulaires web, les boîtes de recherche et les éléments technologiques dynamiques ne fonctionnent pas. Voir toutes les versions de cette page conservée.
Chargement des informations sur les médias

You are viewing a preserved web page, collected by Library and Archives Canada on 2007-12-11 at 09:14:22. The information on this web page may be out of date and external links, forms, search boxes and dynamic technology elements may not function. See all versions of this preserved page.
Loading media information

Skip to content | Skip to institutional links

Common menu bar links

Institutional links

Sale of eligible capital property – Sole-proprietor

When you sell eligible capital property, you have to subtract part of the proceeds of disposition from your CEC account.

You have to do this calculation if you sold eligible capital property:

in your fiscal period; or
before June 18, 1987, and the proceeds of disposition become due to you in your fiscal period.

The amount you have to subtract is 75% of the total of these amounts:

the proceeds of disposition of all the eligible capital property you sell in your fiscal period; and
the amount of any proceeds that become due to you in your fiscal period from eligible capital property you sold before June 18, 1987.

There may be a negative amount (excess) in your CEC account after you subtract the required amount. In this case, you will have to include part of the negative amount in your business income.

Multiply by 2/3 the part of the negative amount in your CEC account that exceeds the annual allowances deducted. To that result, add whichever is less, the excess or annual allowances deducted. This is the amount to include in your business income.

The following example shows how to calculate the amount to include in your business income.

Example
Carol started her business on January 1, 2000, with a December 31 year-end. In 2000, Carol bought a client list for $10,000. Carol sold her business on September 1, 2006. She sold her client list for $15,000 and she does not have any other eligible capital property in her business. She deducted annual allowances each year as follows:

2000	$ 525
2001	488
2002	454
2003	422
2004	393
2005	365
Total	$ 2,647

The amount included in Carol's business income on line 8230, "Other income," on Form T2124 is the total of amounts A and C:

Calculation of amount A:
The lesser of i) or ii):
i)	Excess amount calculated as follows:
	Proceeds of disposition: $15,000 $15,000 × 75%			$	11,250
	Plus: total annual allowances deducted				2,647
				$	13,897
	Minus: 75% of eligible capital expenditures $10,000 × 75%			$	7,500
	Excess amount			$	6,397	i
ii)	Total annual allowances deducted			$	2,647	ii
The lesser of i) or ii):				$	2,647	A
Calculation of amount B:
	Excess amount	$	6,397
	Minus: total annual deductions taken		2,647	$	3,750	B
Calculation of amount C:
	Line B × 2/3			$	2,500	C
	Line A plus line C			$	5,147
The amount to be included in Carol's business income on line 8230, "Other income," is $5,147.

Forms and publications

Business and Professional Income (T4002)

Common menu bar links

Institutional links

Return to Business

Return to Eligible capital expenditures

Sale of eligible capital property – Sole-proprietor

Forms and publications