This week, Maclean’s released a list showing how its 2015 newsmakers would make peanut butter and jelly sandwiches. For instance, José Bautista would gather 50,000 people in his kitchen, admire the sandwich for just a little too long, and then casually flip his knife in celebration.
Advisor.ca decided to get in on the fun as well. We humbly present how the securities industry would make peanut butter and jelly sandwiches.
A value PM’s instructions for a PB&J sandwich
- Meet with the peanut farmer, wheat farmer and strawberry pickers. Examine the ingredient lists, manufacturing equipment and recipe books for the peanut butter, bread and jelly.
- Determine a fair price for the peanut butter, bread and jelly.
- Monitor the weekly flyers and wait until the PB&J and bread are on sale to make the purchase.
- Spread PB&J judiciously over the bread, with a margin of safety around each dollop.
How to make a CRM2-compliant PB&J sandwich
- Consult the industry about the best method for sandwich-making through a series of comment letters and roundtables.
- Slowly phase in modifications to the existing PB&J-making regime over several years. Create multiple exemptions, extensions and implementation deadlines.
- If the PB&J sandwich is to be made as of Dec 31, 2015, ensure the recipe discloses all expenses, and that it does so in dollars and cents, not percentages.
- Serve it alongside a “Sandwich Facts” document that shows all nutritional information, so that the eater can understand the full impact of the PB&J sandwich.
Read: 7 myths about CRM2
CRA’s PB&J sandwich instructions
- Determine the adjusted cost base of the sandwich ingredients.
- Determine the domicile of the ingredients. If the ingredients are considered specified foreign property, go to step 3. If the ingredients have no foreign ties, go to step 4. Domicile is a question of fact.
- If the total cost of the ingredients exceeded $100,000 but was less than $250,000 at any point within the year during tax year 2015, file form T1135. If the total cost of the ingredients exceeded $250,000 at any point within the year, file form T1135 and fill out Part B. (If you are filing for tax year 2014 and earlier, use the 2014 version of the form.)
- Spread the peanut butter and jelly. Certify that you have completed all steps correctly and that you have fully disclosed all information to the best of your knowledge. (It is a serious offense to make a false statement.)
- Cut the sandwich and remit one-half to the government (58.75% in New Brunswick as of Jan. 1, 2016).
Do you have your own PB&J recipe? Did you like this? Leave your recipe in the comments or email email@example.com.