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Capital Gain reserve from 2011

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Hello,

 

I have a quick question...hopefully someone can clarify. ;-)

 

I had a large capital gain from 2011, but when the shares were sold, a portion was held in escrow until Dec. 2012. When filing my 2011 taxes I declared my capital gain minus the reserve (which incidentally as of the sale was $4,499.70).

 

Now on my 2012 tax return, UFILE has "automagically" entered the escrow (reserve) figure into the "Other property after 2007 - Opening balance for this year" box under the "Capital gains & ABIL -> Capital gain reserve" section. This makes sense to me (I think), but my question is the following:

The escrow amount actually ended up being approx. 90% of the initial amount ($3,907.68). Is it correct for me to assume that this figure should be entered in the next box entitled: "Other property after 2007 - Closing balance for this year"?

I'm just not entirely sure if that is the correct AND/OR only place to declare that I've received that amount as income for 2012.

 

Any help is much appreciated.

 

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I received the entire escrowed balance in 2012 (December to be exact).

We were told that "...the withheld Escrow amount was reduced by ~9% due to a post-closing working capital adjustment as a result of less Accounts Receivable outstanding at close than forecast.  So expect to receive ~91% of the Escrow amount you were provided at closing".

So in 2011 my escrowed amount was stated to be $4,499.70, and the amount that I received in full in Dec. 2012 was $3,907.68.

As I explained above, I'm just trying to ensure that I've entered the amount in the correct location in the software.

 

Thank you for the response.

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As you received the whole amount in 2012, the whole reserve must be used up in 2012.

Enter 0.00 (zero) as the "closing balance for this year".

 

However you incurred a loss of $592.02 on the amount you were expecting to receive ($4,499.70 less $3,907.68).

Account for it by entered a Stock disposition:

- date of disposition (date you received the actual escrowed amount)

- total proceeds - 0.00 (zero)

- adjusted cost base - 592.02

 

Verify the results in Form T2017 (Summary of reserves) and in Schedule 3.

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OK...thank you. I've done the above and everythings appears to be kosher. I'm just not sure about this statement:

"...Verify the results in Form T2017 (Summary of reserves) and in Schedule 3..."

 

Where exactly do I go for this?

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