tax quiz 5 8

pdf

School

Humber College *

*We aren’t endorsed by this school

Course

425

Subject

Accounting

Date

Feb 20, 2024

Type

pdf

Pages

1

Uploaded by backup500

Report
$100,000 [5120,000 550,000 If Thomas uses section 85 of the Income Tax Act (ITA) to transfer the equipment to his newly formed corporation, which of the following amounts should he choose as the elected value assuming that he wishes to minimize any taxes payable as a result of the transfer? Also assume that Thomas does not receive any non-share consideration. %0 v( ) $50,000 1 $100,000 ) $120,000 w Hide question 10 feedback Answer b) is correct. The lower limit of the elected amount is the greater of: (1) the FMV of non-share consideration received and (2) the lesser of the FMYV of the property, UCC of the property, and the cost of property. The UCC of the property of $50,000 is the lowest amount. The elected amount of $50,000 becomes the deemed proceeds of disposal. As the deemed proceeds of $50,000 are equal to the UCC, no recapture will result. This will minimize the taxes payable. Question 11 1/ 1 point Which of following statements regarding the provisions of section 85 of the Income Tax Act (ITA) is true? v() An eligible transferor may be a non-resident of Canada for tax ~ purposes. ) An eligible corporate transferee may be a non-resident of Canada for ~ tax purposes at the time of transfer.
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help