Dates and location
Pricing
Hours
Dates and location
Pricing
Hours
Description
Every practice sees these files. A plant is expropriated for a transit corridor. A shop burns down and the insurer pays. A client outgrows a building and moves. Tax is triggered, a capital gain, and very often recapture underneath it, in a year when the client has spent every dollar of the proceeds on the replacement and has no cash to pay it. Subsection 13(4) and section 44 exist precisely for that. But the relief is elective, it is deadline-driven, and it is lost far more often through ordinary oversight than through any difficulty of principle: the issue is spotted after closing, the replacement turns out to be the wrong kind of property, the clock started two years earlier than anyone assumed, or nobody attached the election letter, because there is no prescribed form.
What makes this course different:
- CRA technical interpretations, advance rulings and roundtable answers, cited by document number on the slide where they are used - each one integrated into the rule it interprets, with the issue, the Agency’s actual position, and what it changes on your file.
- Six court decisions worked in full - Glaxo Wellcome, Buonincontri, Grove Acceptance, Laurentide Rendering, Shaw and Livingston, each with the facts, the decision and the practical lesson.
- A full worked computation property by property, with the recapture reduction, the reduction in the new tax cost, and a reconciliation that proves the answer, then the subsection 44(6) land and building election worked both with and without, so you can price the trade-off rather than describe it.
- Materials designed to be used, not read: a twelve-point file review sheet, a four-moment engagement checklist, and a single sources-and-reference slide listing every provision and CRA publication the course relies on.
Prerequisite: A working knowledge of capital gains and capital cost allowance. No prior exposure to the replacement property rules is assumed.
Key Topics
| Session | Description |
|---|---|
|
Why This Matters |
The stakes on a single transaction, the six failure modes, and the running client file. |
|
The Architecture of the Rules |
Two elections deemed to be one; the two doorways in and why only one asks about the business; what proceeds open the involuntary door and what does not; the specified periods and the enacted COVID-19 suspension. |
|
When the Clock Actually Starts |
Subsection 44(2): the five deeming events, the two-year backstop and what switches it off, staged insurance payments, and the early settlement that costs a client two years. |
|
The Voluntary Door |
Subsection 248(1) read in four parts; "used", "primarily" and the rental property exclusion; the related-person carve-back most owner-managed structures depend on; interim rentals, idle periods and Class 14.1. |
|
What Counts as a Replacement |
The five conditions; causal relationship and business expansion; direct substitution and physical characteristics; substantial other use; same or similar business; who does the using, and by when. |
|
Running the Numbers |
The gain and the recapture computed line by line on the client file, with a reconciliation that proves the answer; the subsection 44(6) election worked both ways; reserves, and the reserve that does not exist. |
|
Filing, Reassessment and Repair |
The election letter and the three filing scenarios; reporting first and reassessing after; security in lieu of payment; the ten-year window in subsection 220(3.2); the capital dividend account trap. |
|
The Perimeter |
Partnerships and the mismatch that defeats the election; amalgamations and wind-ups; non-residents, foreign property and foreign affiliates; personal-use property and death; limited period franchises. |
|
Course Review |
The twelve ways the deferral is lost, as a file review sheet; the four-moment engagement checklist; and the sources the course is built on. |
Key Takeaways
By the end of this course, you will be able to:
- Identify which of the two doorways a disposition comes through, and therefore whether the client has 24 months or 12 months.
- Determine the initial year under subsection 44(2) rather than assuming it and advise counsel before a compensation settlement is signed.
- Apply the definition of former business property, including the rental property exclusion and the related-person carve-back.
- Advise a client, before they buy, whether a proposed replacement property will satisfy subsections 13(4.1) and 44(5).
- Compute the deferral property by property, decide whether the subsection 44(6) election helps or hurts, and price what the deferral costs in lost capital cost allowance.
- Draft the election letter, obtain the reassessment of the year of disposition, and arrange security in the meantime.
- Recognise the files where the client is better off not electing at all and be able to explain why.
Who Will Benefit
- CPAs and tax practitioners advising owner-managed businesses that hold real estate, the group these rules most often reach.
- Practitioners handling an expropriation, a fire or flood claim, a farm consolidation or a business relocation, now or in the next two years.
- Tax lawyers and corporate counsel negotiating expropriation compensation, where the settlement date sets the client’s tax deadline.
- Senior staff and CPA candidates who need working command of a relief their clients qualify for more often than anyone claims it.
How to Access the Course
To access your course, visit the CPA Ontario Blackboard site and sign in using the same username and password used for the Registration Portal. You can also access your course through the Blackboard Learn app (iOS or Android).
Important: Course access begins on the date of purchase and remains available for the Access Time specified for the course under Dates and Location. Please review the access time before purchasing. Note that it may take up to 15 minutes after registration for the course to appear in Blackboard.
Registration, cancellation, withdrawal, and other CPA Ontario PD policies can be found here.