[Verse 1] Sarah joins a venture with her neighbor and her friend Each partner brings their assets to the table, cash to blend Section ninety-six demands we calculate the share Income flows to partners based on what agreement's there [Chorus] Partnership income computation, section ninety-six the key ACB tracks your basis, what you put in, what you see At-risk rules protect the taxman from artificial schemes Limited partnerships shelter dreams from risky scenes [Verse 2] Adjusted cost base starts with what you paid to enter in Add your share of profits, subtract the cash you win Losses drop your basis but never past the floor Zero is the limit, you cannot lose much more [Chorus] Partnership income computation, section ninety-six the key ACB tracks your basis, what you put in, what you see At-risk rules protect the taxman from artificial schemes Limited partnerships shelter dreams from risky scenes [Verse 3] At-risk rules in section two point two say hold your ground Losses cannot exceed the amount that you have bound What you truly risk to lose, not paper guarantees Recourse debt counts toward your risk, non-recourse brings you to your knees [Bridge] Limited partners face the wall Cannot deduct beyond their call Tax shelter rules apply with force When losses seem without recourse [Chorus] Partnership income computation, section ninety-six the key ACB tracks your basis, what you put in, what you see At-risk rules protect the taxman from artificial schemes Limited partnerships shelter dreams from risky scenes [Outro] From computing shares to tracking every dime you spend Partnership taxation makes the numbers comprehend
← 3 Acquisition and Sale of a Business | 1 Canada's International Tax Framework →