ECN 204 Lecture Notes - Lecture 5: Students Of Georgetown, Inc., Propylthiouracil, Promissory Note
Document Summary
Transfer of property to a corp from a shareholder. The acb of the shares received should equal the value of the. To defer any gain, the asset must be transferred choosing an elected amount equal to their value (i. e acb, ucc, etc) so that their are no tax considerations on the transfer. Ava wants to transfer land to corp a (which she controls through her 100% ownership their c. s) The land being transferred has an acb of 10k and a fmv of 50k. Ms. ava will accept one class b common share as consideration for the transfer of land. If an asset is transferred to a corp at tax value and only common. Shares are accepted, there will be no tax consequences on the. If the section 85 election is not made, or can"t be made, then there will be income/loss of some nature to report.
