CA2720364A1 - Tax loss verification method - Google Patents
Tax loss verification method Download PDFInfo
- Publication number
- CA2720364A1 CA2720364A1 CA 2720364 CA2720364A CA2720364A1 CA 2720364 A1 CA2720364 A1 CA 2720364A1 CA 2720364 CA2720364 CA 2720364 CA 2720364 A CA2720364 A CA 2720364A CA 2720364 A1 CA2720364 A1 CA 2720364A1
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- CA
- Canada
- Prior art keywords
- capital
- orphaned
- set forth
- owner
- programmed computer
- Prior art date
- Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
- Abandoned
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- 238000000034 method Methods 0.000 title claims abstract description 30
- 238000012795 verification Methods 0.000 title description 2
- 238000002425 crystallisation Methods 0.000 claims abstract description 4
- 230000008025 crystallization Effects 0.000 claims abstract description 4
- 238000012546 transfer Methods 0.000 claims abstract description 3
- 238000012797 qualification Methods 0.000 claims 1
- 230000000694 effects Effects 0.000 description 3
- 238000011002 quantification Methods 0.000 description 2
- 230000004075 alteration Effects 0.000 description 1
- 238000012986 modification Methods 0.000 description 1
- 230000004048 modification Effects 0.000 description 1
- 238000012552 review Methods 0.000 description 1
Classifications
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/02—Banking, e.g. interest calculation or account maintenance
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/06—Asset management; Financial planning or analysis
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- Business, Economics & Management (AREA)
- Engineering & Computer Science (AREA)
- Finance (AREA)
- Accounting & Taxation (AREA)
- Development Economics (AREA)
- Theoretical Computer Science (AREA)
- Physics & Mathematics (AREA)
- General Physics & Mathematics (AREA)
- General Business, Economics & Management (AREA)
- Economics (AREA)
- Marketing (AREA)
- Strategic Management (AREA)
- Technology Law (AREA)
- Entrepreneurship & Innovation (AREA)
- Operations Research (AREA)
- Human Resources & Organizations (AREA)
- Game Theory and Decision Science (AREA)
- Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
Abstract
A method involving at least in partial utilization a programmed computer for verifying tax losses with proper documentation to substantiate the loss acceptable to tax authorities. In one embodiment, crystallization for a financial loss from orphaned capital is achieved by determining with the programmed computer the existence of orphaned capital within an investment portfolio and the type of the orphaned capital, The owner information is determined and subsequently a purchase and sale agreement between the owner and a clearing entity is effected at a predetermined selling price. The orphaned capital is then sold and documentation evidencing sale and transfer of the orphaned capital is issued to the owner for crystallization of said financial loss.
Description
TAX LOSS VERIFICATION METHOD
FIELD OF THE INVENTION
[0001] This invention relates to effectively clearing orphaned capital and more particularly, the present invention relates to methodology for generating the necessary documentation for a substantiated tax loss acceptable to the tax authorities.
FIELD OF THE INVENTION
[0001] This invention relates to effectively clearing orphaned capital and more particularly, the present invention relates to methodology for generating the necessary documentation for a substantiated tax loss acceptable to the tax authorities.
[0002] BACKGROUND OF THE INVENTION
[0003] In the present investment community, there have been significant losses in a variety of investment instruments. A number of methods have been proposed to effect stop-loss orders or pool investors' losses in one form or another to reduce overall net effect in the investment instrument.
[0004] Generally speaking, once a loss is experienced by an investor, the individual loses interest in the instrument and as a result, these simply remain with the brokerage house, trust funds, etc. as orphaned capital.
Disgruntled investors then, with a view to effecting a tax loss, simply claim with the tax authorities that the investment became worthless and this loss is applied against any capital gains the individual may have. Although this is broadly correct, there is one significant complication to cause the already disgruntled investor even greater problems. This is owing to the fact that the tax authorities do not accept simply the 'word" of investors suffering the loss;
there must be some record of quantifying the loss of the investment which, in the absence of such documentation, could be said to be any amount by the investor and hence the need for quantification by the tax authorities.
Disgruntled investors then, with a view to effecting a tax loss, simply claim with the tax authorities that the investment became worthless and this loss is applied against any capital gains the individual may have. Although this is broadly correct, there is one significant complication to cause the already disgruntled investor even greater problems. This is owing to the fact that the tax authorities do not accept simply the 'word" of investors suffering the loss;
there must be some record of quantifying the loss of the investment which, in the absence of such documentation, could be said to be any amount by the investor and hence the need for quantification by the tax authorities.
[0005] A further problem is the difficulty entwined within this situation gives rise to the fact that the orphaned capital in some situations can attract handling fees via the trust company, broker, investment advisor, etc. These investment professionals often have to return to their clients who may have suffered significant losses and ask for the fees to be paid. This is a difficult -1_ situation and in some instances, the investment professional ends up being the party paying the fees within the orphaned capital vehicle.
[0005] It would be desirable if there were a methodology to acquire and aggregate orphaned capital within an investment vehicle and one which also would provide a protocol for generating a quantified and substantiated document acceptable to the tax authorities which could legitimately be used as a tax loss.
[0007] The present invention is directed to satisfying this need.
SUMMARY OF THE INVENTION
[0008] It is an object of the present invention to obviate or mitigate at least one disadvantage of the prior art.
[0009] Conveniently, the existing methodology can be applied to any form of orphaned capital such as a personal loan, shareholder loan, investment loan, as well as a registered security such as an RRSP, RRIF, LIRA and LRSP, to list a few non-limiting examples.
[0010] In accordance with an embodiment of the present invention there is provided a method for crystallizing a financial loss from orphaned capital utilizing at least partially a programmed computer, comprising:
providing an investment portfolio from at least one owner; determining with said programmed computer the existence of orphaned capital within said investment portfolio; determining with said programmed computer the type of said orphaned capital; obtaining with said programmed computer owner information; generating with said programmed computer a purchase and sale agreement between said owner and a clearing entity at a predetermined selling price; effecting said sale of said orphaned capital; generating with said programmed computer documentation evidencing sale and transfer of said orphaned capital; and issuing said owner said documentation for crystallization of said financial loss.
[0011] Other aspects and features of the present invention will become apparent to those ordinarily skilled in the art upon review of the following description of specific embodiments of the invention in conjunction with the accompanying figures.
BRIEF DESCRIPTION OF THE DRAWING
[0012] Embodiments of the present invention will now be described, by way of example only, with reference to the attached Figure, wherein:
[0013] Figure 1 is a schematic flowchart of the stages involved in the method.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0014] Reference may be made below to specific elements, numbered in accordance with the attached figures. The discussion below should be taken to be exemplary in nature, and not as limiting of the scope of the present invention. The scope of the present invention is defined in the claims, and should not be considered as limited by the implementation details described below, which as one skilled in the art will appreciate, can be modified by replacing elements with equivalent functional elements.
[0015] Referring to Figure 1, shown is one embodiment of the present invention in a schematic flowchart form; the overall process is denoted by reference numeral 10. The investment portfolio 12 is provided and there may be any number of investment portfolios for which the method discussed hereinafter can be effected. Making use of a programmed computer (not shown and not shown for the remaining detailed description), the type of orphaned capital can be determined as noted by step number 14. The orphaned capital can be determined for a single investment portfolio or a host of independent portfolios from a single individual or conducted for a variety of individuals. As examples of the orphaned capital, without being limiting, the same may be personal loans, shareholder loans, investment loans, active cease trade order, or secured registered accounts such as an RRSP, RR[F, LIRA, LRSP, inter alia. Once the orphaned capital is determined as to the type at 16, then the same is isolated as the personal loan 18, shareholder loan 20, investment loan 22, registered security 24, or any other type of orphaned capital, broadly denoted by reference numeral 26 in Figure 1.
[0016] Once the type of orphaned capital is determined, the purchaser 28 and owner 30 of the investment portfolio 12 decide on a predetermined price that the purchaser may acquire orphaned capital for in order to provide disposition for the owner 30. Once the predetermined amount is decided upon, a purchase and sale agreement is generated, this step being denoted by reference numeral 32, where title to the orphaned capital is conveyed to the purchaser 28, this step being denoted by reference numeral 34. Once disposition has been effected, a sale documentation evincing the disposition to the purchaser from the owner is effected. This step is denoted by reference numeral 36. Once the documentation is generated, the certificate or other instrument is issued to the owner. This step is denoted by reference numeral 38. At this point, the certificate provides a quantification of the amount of capital that was disposed and the dollar value at the time of disposition in order to provide all of the necessary information requisite to effect the tax laws, while staying within the boundaries of the requirements of the tax authorities.
[0017] As will be appreciated, where the instrument is an orphaned capital is a registered security, deregistration of the property will have to be effected by the purchaser and then reregistered with the new purchaser in order to observe the requisite protocol required by the tax authorities.
[0018] The above-described embodiments of the present invention are intended to be examples only. Alterations, modifications and variations may be effected to the particular embodiments by those of skill in the art without departing from the scope of the invention, which is defined solely by the claims appended hereto.
[0005] It would be desirable if there were a methodology to acquire and aggregate orphaned capital within an investment vehicle and one which also would provide a protocol for generating a quantified and substantiated document acceptable to the tax authorities which could legitimately be used as a tax loss.
[0007] The present invention is directed to satisfying this need.
SUMMARY OF THE INVENTION
[0008] It is an object of the present invention to obviate or mitigate at least one disadvantage of the prior art.
[0009] Conveniently, the existing methodology can be applied to any form of orphaned capital such as a personal loan, shareholder loan, investment loan, as well as a registered security such as an RRSP, RRIF, LIRA and LRSP, to list a few non-limiting examples.
[0010] In accordance with an embodiment of the present invention there is provided a method for crystallizing a financial loss from orphaned capital utilizing at least partially a programmed computer, comprising:
providing an investment portfolio from at least one owner; determining with said programmed computer the existence of orphaned capital within said investment portfolio; determining with said programmed computer the type of said orphaned capital; obtaining with said programmed computer owner information; generating with said programmed computer a purchase and sale agreement between said owner and a clearing entity at a predetermined selling price; effecting said sale of said orphaned capital; generating with said programmed computer documentation evidencing sale and transfer of said orphaned capital; and issuing said owner said documentation for crystallization of said financial loss.
[0011] Other aspects and features of the present invention will become apparent to those ordinarily skilled in the art upon review of the following description of specific embodiments of the invention in conjunction with the accompanying figures.
BRIEF DESCRIPTION OF THE DRAWING
[0012] Embodiments of the present invention will now be described, by way of example only, with reference to the attached Figure, wherein:
[0013] Figure 1 is a schematic flowchart of the stages involved in the method.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0014] Reference may be made below to specific elements, numbered in accordance with the attached figures. The discussion below should be taken to be exemplary in nature, and not as limiting of the scope of the present invention. The scope of the present invention is defined in the claims, and should not be considered as limited by the implementation details described below, which as one skilled in the art will appreciate, can be modified by replacing elements with equivalent functional elements.
[0015] Referring to Figure 1, shown is one embodiment of the present invention in a schematic flowchart form; the overall process is denoted by reference numeral 10. The investment portfolio 12 is provided and there may be any number of investment portfolios for which the method discussed hereinafter can be effected. Making use of a programmed computer (not shown and not shown for the remaining detailed description), the type of orphaned capital can be determined as noted by step number 14. The orphaned capital can be determined for a single investment portfolio or a host of independent portfolios from a single individual or conducted for a variety of individuals. As examples of the orphaned capital, without being limiting, the same may be personal loans, shareholder loans, investment loans, active cease trade order, or secured registered accounts such as an RRSP, RR[F, LIRA, LRSP, inter alia. Once the orphaned capital is determined as to the type at 16, then the same is isolated as the personal loan 18, shareholder loan 20, investment loan 22, registered security 24, or any other type of orphaned capital, broadly denoted by reference numeral 26 in Figure 1.
[0016] Once the type of orphaned capital is determined, the purchaser 28 and owner 30 of the investment portfolio 12 decide on a predetermined price that the purchaser may acquire orphaned capital for in order to provide disposition for the owner 30. Once the predetermined amount is decided upon, a purchase and sale agreement is generated, this step being denoted by reference numeral 32, where title to the orphaned capital is conveyed to the purchaser 28, this step being denoted by reference numeral 34. Once disposition has been effected, a sale documentation evincing the disposition to the purchaser from the owner is effected. This step is denoted by reference numeral 36. Once the documentation is generated, the certificate or other instrument is issued to the owner. This step is denoted by reference numeral 38. At this point, the certificate provides a quantification of the amount of capital that was disposed and the dollar value at the time of disposition in order to provide all of the necessary information requisite to effect the tax laws, while staying within the boundaries of the requirements of the tax authorities.
[0017] As will be appreciated, where the instrument is an orphaned capital is a registered security, deregistration of the property will have to be effected by the purchaser and then reregistered with the new purchaser in order to observe the requisite protocol required by the tax authorities.
[0018] The above-described embodiments of the present invention are intended to be examples only. Alterations, modifications and variations may be effected to the particular embodiments by those of skill in the art without departing from the scope of the invention, which is defined solely by the claims appended hereto.
Claims (19)
1. A method for crystallizing a financial loss from orphaned capital utilizing at least partially a programmed computer, comprising:
providing an investment portfolio from at least one owner;
determining with said programmed computer the existence of orphaned capital within said investment portfolio;
determining with said programmed computer the type of said orphaned capital;
obtaining with said programmed computer owner information;
generating with said programmed computer a purchase and sale agreement between said owner and a clearing entity at a predetermined selling price;
effecting said sale of said orphaned capital;
generating with said programmed computer documentation evidencing sale and transfer of said orphaned capital; and issuing said owner said documentation for crystallization of said financial loss.
providing an investment portfolio from at least one owner;
determining with said programmed computer the existence of orphaned capital within said investment portfolio;
determining with said programmed computer the type of said orphaned capital;
obtaining with said programmed computer owner information;
generating with said programmed computer a purchase and sale agreement between said owner and a clearing entity at a predetermined selling price;
effecting said sale of said orphaned capital;
generating with said programmed computer documentation evidencing sale and transfer of said orphaned capital; and issuing said owner said documentation for crystallization of said financial loss.
2. The method as set forth in claim 1, wherein determining with said programmed computer the existence of orphaned capital within said investment portfolio includes determining for a plurality of owners.
3. The method as set forth in claim 1, wherein said owner is an investment firm.
4. The method as set forth in claim 1, wherein said owner is a trust company.
5. The method as set forth in claim 1, wherein said owner is an investment firm.
6. The method as set forth in claim 1, wherein said owner is a stock brokerage.
7. The method as set forth in claim 1, wherein said orphaned capital is a personal loan.
8. The method as set forth in claim 1, wherein said orphaned capital is a shareholder loan.
9. The method as set forth in claim 1, wherein said orphaned capital is an investment loan.
10. The method as set forth in claim 1, wherein said orphaned capital is a security in a registered account.
11. The method as set forth in claim 10, wherein said a security is an RRSP.
12. The method as set forth in claim 10, wherein said a security is an RRIF.
13. The method as set forth in claim 10, wherein said a security is an LIRA.
14. The method as set forth in claim 10, wherein said a security is an LRSP.
15. The method as set forth in claim 10, wherein said a security is an LRSP.
16. The method as set forth in claim 10, further including the step of deregistering registered securities by said clearing entity.
17. The method as set forth in claim 16, further including the step of reregistering said deregistered securities by said clearing entity.
18. The method as set forth in claim 1, wherein said orphaned capital is an investment with an active cease trade order.
19. The method as set forth in claim 1, further including the step of approving for qualification said orphaned capital prior to generating said purchase and sale agreement.
Priority Applications (2)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2720364 CA2720364A1 (en) | 2010-11-05 | 2010-11-05 | Tax loss verification method |
| PCT/CA2010/001802 WO2012058746A1 (en) | 2010-11-05 | 2010-11-12 | Tax loss verification method |
Applications Claiming Priority (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2720364 CA2720364A1 (en) | 2010-11-05 | 2010-11-05 | Tax loss verification method |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2720364A1 true CA2720364A1 (en) | 2012-05-05 |
Family
ID=46020979
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA 2720364 Abandoned CA2720364A1 (en) | 2010-11-05 | 2010-11-05 | Tax loss verification method |
Country Status (2)
| Country | Link |
|---|---|
| CA (1) | CA2720364A1 (en) |
| WO (1) | WO2012058746A1 (en) |
Cited By (1)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| CN108109062A (en) * | 2017-12-06 | 2018-06-01 | 广东电网有限责任公司惠州供电局 | Electric system power transmission and transformation kind equipment is intelligently converted into financial system account for assets method |
Family Cites Families (6)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| BR9908683A (en) * | 1998-03-11 | 2001-10-16 | Folio Fn Inc | System, method and apparatus to enable individual or minor investors or others to create and control a portfolio of credit securities or other assets or obligations on a cost-effective basis |
| US7171384B1 (en) * | 2000-02-14 | 2007-01-30 | Ubs Financial Services, Inc. | Browser interface and network based financial service system |
| US20010056387A1 (en) * | 2000-02-17 | 2001-12-27 | Newriver, Inc. | Method and apparatus for providing financial transaction data via the internet |
| US20030225663A1 (en) * | 2002-04-01 | 2003-12-04 | Horan James P. | Open platform system and method |
| US20040210504A1 (en) * | 2002-07-05 | 2004-10-21 | Will Rutman | Options automated trading system (OATS) and method of options trading |
| US8001029B2 (en) * | 2004-03-26 | 2011-08-16 | Ubs Ag | Method and computer program for tax sensitive investment portfolio management |
-
2010
- 2010-11-05 CA CA 2720364 patent/CA2720364A1/en not_active Abandoned
- 2010-11-12 WO PCT/CA2010/001802 patent/WO2012058746A1/en active Application Filing
Cited By (1)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| CN108109062A (en) * | 2017-12-06 | 2018-06-01 | 广东电网有限责任公司惠州供电局 | Electric system power transmission and transformation kind equipment is intelligently converted into financial system account for assets method |
Also Published As
| Publication number | Publication date |
|---|---|
| WO2012058746A1 (en) | 2012-05-10 |
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Legal Events
| Date | Code | Title | Description |
|---|---|---|---|
| FZDE | Dead |
Effective date: 20141105 |