However, an explanation often given by the person wanting to backdate the document is that the document is merely meant to reflect an oral agreement that has already been made and that this is just a way of documenting it.
In theory, this would appear on the face of it to be a reasonable request, as it is just a private arrangement between two parties.
Is it legal to comply with the request or must it always be refused outright?
Alternatively, is there a way of legally trying to achieve the required objective?
While this is still not illegal, such practices would be disincentivized by rigorous options accounting.
Remember, if you choose to designate it again, you have to include those previously designated tax years as part of your principal residence designation in 2018. Instead, calculate your capital gain, if any, in the regular way (proceeds of disposition minus the adjusted cost base and outlays and expenses).
December 2014 – January 2015 A client or, in the case of an in house lawyer colleague (who for the purposes of this article will also be considered a client), asks you to prepare a document and then your heart sinks as he says “oh and it has to be dated” and gives a date which has already passed.
How is it possible with such a trend that the board itself was not suspicious?
Use Form T2091(IND)-WS, Principal Residence Worksheet, to calculate a reduction due to the capital gains election.
If the document is putting in place something which “should have been done” but hasn’t been, usually for tax or similar reasons, then the position is straightforward.