If you are an individual owning South West Terminal Ltd. (SWT) shares personally, and not through a corporation or RRSP, there is an opportunity this fall to make use of the capital gain deduction (CGD) before the shares are no longer eligible for the CGD. The CGD allows a taxable capital gain on certain shares to be offset so that the gain is no longer taxable.
The SWT has posted a notice to shareholders, that effective on or after December 31, 2018, they will file an election to be a public corporation. This will then end the eligibility of the shares for the CGD.
SWT shareholders should determine if it would be in their interest to use the CGD before the eligibility period is over. Following are some ways that may work depending on your circumstances:
There may be some of the following tax implications of disposing of the shares, whether it be to outside or related parties, especially if you have considerable share value;
Please contact your trusted Stark & Marsh representative as soon as possible if you would like to explore the options available in your situation and the implications that may result.
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