Subsections 44(1),

My question is: Canadian-specific
QUESTION: My Company owns the land and building it occupies and needs to
relocate. I have owned it for 22 years and there is a huge difference
between book value and the sale price. How do I avoid Capital gains tax?
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david ingram replies:
You are in luck.  If you sell this property and replace it with a similar
property of equal or greater value you may elect to defer the profit under
Subsections 44(1), 13(4) and 14(6) of the Canadian Income Tax Act.
You may find more information In the CRA's Bulletin IT-259-R4 at.
http://www.cra-arc.gc.ca/E/pub/tp/it259r4/it259r4-e.html#P87_15633
Note that you can buy the new building before or after the first is sold and
if you sell this one in 2006 and do not buy until 2007 that is okay as well.
The bulletin explains the recapture of depreciation and other amounts and
what happens if you happen to buy and sell in different years.
A word to the wise.
If your regular accountant does not know this already and is learning on
your nickel, you may want to have someone else look over the work before
submitting the return.  As an example, I would likely charge between $400 to
$800.00 for a second opinion.
=============
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