Chart 2 – Calculating the revised adjusted cost base (ACB) of a flow-through entity
Note
The CRA offers a printer-friendly version of this chart that is identical to the one in the printed Capital Gains guide.
Complete this chart to calculate the ACB of your shares of, or interest in, the flow-through entity only if the proceeds of disposition you designated on Form T664 for the property were more than its fair market value (FMV) at the end of February 22, 1994. If the flow-through entity is a trust (other than a mutual fund trust), do not complete this chart as you do not have to reduce the ACB of your interest.
Adjusted cost base (ACB) calculation for flow-through entity
Step 1 – Reduction of the ACB
Designated proceeds of disposition (column 2 of Chart A of Form T664)
Blank space to input proceeds of disposition
Blank space to input amount
FMV at the end of February 22, 1994 (Step 1 of Form T664)
Blank space to input amount
Chart A
× multiply by 1.1 = Equals
− Minus
Line 1 minus line 2 (if negative, enter "0")
= Equals
Line 3
If the amount on line 3 is "0", do not complete the rest of this chart.
Amount A above
Blank space to input Amont A
Blank space to input Amount A above
Blank space to input amount
Line 4
ACB at the end of February 22, 1994 (column 1 of Chart A of Form T664)
− Minus
Line 2 minus line 5
= Equals
If you entered an amount in column 4 of Chart A of Form T664, complete lines 7 to 11 and continue at line 12.
Otherwise, enter the amount from line 6 on line 8.
Amount from column 4 of Chart A of Form T664
Blank space to input amount
Line 7
Amount from column 3 of Chart A of Form T664
÷ Divided by
Line 8
Line 7 divided by line 8
= Equals
Line 9
Amount from line 6
× Multiply by
Line 10
Line 9 multiplied by line 10
= Equals
− Minus
Line 11
Line 6 minus line 11
= Equals
− Minus
Line 12
Reduction: Line 3 minus line 12
= Equals
Line 13
If the amount on line 13 is negative, do not complete Step 2.
Step 2 – Revised ACB
ACB at the end of February 22, 1994 from line 5
Blank space to input amount
Line 14
Reduction from line 13
− Minus
Line 15
Revised ACB on February 23, 1994:
Line 14 minus line 15 (if negative, enter “0”)
= Equals
Line 16
Use the amount from line 16 to calculate the capital gain or loss when you sell your shares of, or interest in, the flow-through entity.
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