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

Line 1

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 2

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 5

Line 2 minus line 5

= Equals

Line 6

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

Transfer the result to the right

Minus

Line 11

Line 6 minus line 11

= Equals

Transfer the result to the right

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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