Canadian Oils Sands was acquired by Suncor Energy and my 500 shares of COS was transformed at book value into 140 shares of Suncor Energy. The book value of COS was $12,015 but market value was $4,695. To me this seems to be a pass-through transaction without capital gain or loss. Do I have to report this on my income tax somewhere and, if so, how do I report this on my income tax for 2016? Thank you, Bruce
If the Transmittal document did not provide for an Election to "Realize Capital Gains or Losses" or you did not act on your right to do so then there is no tax consequence in the exchange of shares from one Canadian Controlled Corp to another CCC. The book value for the new shares remains at your old Adjusted Cost Base and will be used in the event of a future sale to calculate your gain or loss at that time.
If the Transmittal document did not provide for an Election to "Realize Capital Gains or Losses" or you did not act on your right to do so then there is no tax consequence in the exchange of shares from one Canadian Controlled Corp to another CCC. The book value for the new shares remains at your old Adjusted Cost Base and will be used in the event of a future sale to calculate your gain or loss at that time.
Thanks Terry. I have the same situation. I got a T5008 showing box 21 Proceeds. of the COS shares. As the exchange of the COS shares for Suncor shares is deemed to show no Cap. Gain or loss, should I just fill out sched 3 showing the same ACB as the Proceeds for the COS exchange? That way it will be documented