Administrative Policy
16 March 1995 Memorandum 942959 (C.T.O. "Personal Use Property")
Where a taxpayer's cottage had a pre-1972 cost of $20,000, a V-day value of $50,000 and a current fair market value of $90,000, on a purely technical basis his ACB will be $50,000 even if in 1980 he made capital additions of $5,000. In order to resolve this inequity, RC will add to the median amount the cost of any post-1971 capital additions.
8 April 1991 T.I. (Tax Window, No. 3, p. 2, ΒΆ1259)
Where an individual transfers his shares of an operating company having a V-day value between their cost and fair market value, and elects under s. 85(1) at an amount equal to their cost, his proceeds of disposition for purposes of ITAR 26(3) will be determined under s. 85(1)(a) only, without regard to paragraph 85(1)(c.1).