Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
964226
XXXXXXXXXX M. Eisner
February 21, 1997
Dear XXXXXXXXXX
Re: Tax Treatment - Disposition of Bonds
This is in reply to your letter of December 21, 1996 concerning the above-noted subject.
In your letter, you have indicated that you purchased some Government of Canada Bonds (April 2002 series). You paid a premium of approximately $10 per bond when you purchased them. The face value of each bond is $100. If you were to dispose of the bonds when they mature, you have asked whether you could treat the loss as an income loss rather than as a capital loss.
The information you have provided us suggests that you purchased the bonds with the intention of holding them to maturity, although you may dispose of them prior to that time. If, in your circumstances, the bonds are held as an investment, a loss on the disposition of the bonds would normally be a capital loss for income tax purposes.
We trust our comments will be of assistance to you.
Yours truly,
John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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