Which of the following statements with respect to the taxation of capital gains is not correct? A. When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset.
Which of the following statements with respect to the taxation of capital gains is not correct? A. When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset.
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 4MCQ
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Question
Which of the following statements with respect to the taxation of capital gains is not correct?
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A. When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset.
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B. Gains resulting from dispositions of personal use capital assets are subject to tax.
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C. When an individual sells shares in a Canadian small business corporation, any resulting capital gain can be deferred if the proceeds are reinvested in shares of another Canadian small business corporation.
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D. When a part of a group of identical securities is sold, the adjusted cost base of the shares sold must be based on the average cost of the group.
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