Capital Property

• Define Valuation Day.¹
• Identify factors that the Canada Revenue Agency considers when determining whether property is capital property, such as:
  • Intention at purchase date
  • Frequency of disposition
• Identify that property acquired for the purpose of generating income may be disallowed by the Canada Revenue Agency as capital property. 
• Define types of capital property, such as:
  • Non-depreciable capital property
    • Personal use property²
    • Listed personal property³
    • Other property
  • Depreciable capital property⁴
  • Eligible capital property⁵

Acquisition and Disposition of Property

• Identify when the Canada Revenue Agency considers that an individual has disposed of property.⁶
• Define terms associated with the acquisition and disposition of property, such as:
  • Adjusted cost base⁷
  • Deemed acquisition⁸
  • Deemed cost⁹
  • Fair market value¹⁰
  • Proceeds of disposition¹¹
  • Deemed proceeds of disposition¹²
  • Undepreciated capital cost (for depreciable property)¹³
  • Outlays and expenses¹⁴
  • Inclusion rate¹⁵
  • Inadequate consideration
• Explain when inadequate consideration applies to the disposition of property. 
• Explain the tax impact of inadequate consideration.
• Define types of dispositions, such as:
  • Actual disposition
    • Voluntary disposition¹⁶
    • Involuntary disposition¹⁶
  • Deemed disposition¹⁷
• Define former business property (FBP).¹⁶
• Explain ways in which former business property may be disposed.¹⁶
  • Involuntary
  • Voluntary
• Explain the eligibility requirements for property to qualify as replacement property under the replacement property rules.¹⁶

Capital Gains

• Define values associated with capital gains, such as:
  • Capital gain¹⁸
  • Taxable capital gain¹⁹
• Explain the impact of a capital gain when property is transferred between spouses or common-law partners on:
  • Taxation
  • Adjusted cost base
• Calculate the capital gain and taxable capital gain resulting from the disposition of capital property.
  • Non-depreciable capital property
    • Personal use property²⁰
    • Listed personal property²¹
    • Other property²²
    • Depreciable capital property²³
• Explain the income tax impact to an individual from a capital gain. 
• Estimate the income tax impact to an individual from a capital gain.

Principal Residence Exemption

• Identify criteria for a property to qualify as a principal residence in Canada.²⁴
• Identify that a process exists for claiming the principal residence exemption.