Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:Income Tax Consequences of Conversion???

[RagingBull3]

Found this online:   

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-4-businesses/series-4-businesses-folio-5-tax-deferred-rollovers/income-tax-folio-s4-f5-c1-share-share-exchange.html

"This Chapter discusses the rules applicable to a share for share exchange carried out under section 85.1. The rules apply in certain circumstances when a taxable Canadian corporation is acquired by a Canadian corporation.  The provisions are generally intended to provide a tax-free (rollover) exchange of shares of a taxable Canadian corporation for shares in another Canadian corporation. In order for the rollover to apply, the taxpayer must have held the exchanged shares as capital property. In addition, the consideration received on the exchange of these shares must be newly issued shares of the other corporation. The cost to the purchaser of each of the shares of the acquired corporation is generally the lesser of the fair market value of the share and its paid-up capital."

These 2 highlighted sentenses seem to me to contradict each other, but I have poor English, as demonstrated in all my post and my failed understanding of the terms of the Preferreds of the $25/share entitlement.

All just my opinion.

RagingBull3 wrote: Is the Conversion treated as shares being "sold and bought back" triggering a Capital Gain and new adjusted cost base????   

I sold most of my shares, so I know for sure I got a gain on those.   But what about the shares that got converted?