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Commercial Pilot Licence (CPAER) – Canada · Question

Which of the following is a taxable capital gain for a Canadian corporation?

A realized gain on the sale of shares, unless specifically exempt (e.g., intercorporate dividend on a connected corporation), is generally considered a capital

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Question: Which of the following is a taxable capital gain for a Canadian corporation?

Answer options: ✅ Realized gain on the sale of shares in a subsidiary.

  • Gain on the sale of eligible capital property.
  • Revaluation surplus on an investment property.
  • Dividend income received from a Canadian-controlled private corporation.

Correct answer: Realized gain on the sale of shares in a subsidiary.

Explanation: A realized gain on the sale of shares, unless specifically exempt (e.g., intercorporate dividend on a connected corporation), is generally considered a capital gain, and a portion (50%) is included in income as taxable capital gain.

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