In which of the following examples has the continuity of ownership test been met so that...

 

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In which of the following examples has the continuity of ownership test been met so that the company may carry forward a tax loss? Give brief reasons. Assume that in the first-mentioned year the shares - all of the one class - were beneficially owned by the various shareholders and represent a loss year. Further, in the second-mentioned year the company is attempting to claim a deduction for the prior year loss. 1): 2): 3): 4): 5): 6): 7): Shareholder A ABC B C XXN Y Z R RSTU ABCD EHLUKL MNOPO ABCD C D Loss year 25% 40% 35% 10% 45% 45% 15% 40% 45% 10% 55% 30% 5% - 25% 15% - 60% 20% 20% 20% 20% 20% 51% 9% 40% Claim year 45% 10% 45% 55% 45% 15% 20% 10% 55% 20% 5% 20% 55% 40% 25% 10% 20% 5% 40% 40% 20% 51% 49% Would your answer in item 7 be different if you were told that A had arranged with D to hold the 51% share until the company had recouped its prior year losses, A then being free to sell the shares to whomever? In which of the following examples has the continuity of ownership test been met so that the company may carry forward a tax loss? Give brief reasons. Assume that in the first-mentioned year the shares - all of the one class - were beneficially owned by the various shareholders and represent a loss year. Further, in the second-mentioned year the company is attempting to claim a deduction for the prior year loss. 1): 2): 3): 4): 5): 6): 7): Shareholder A ABC B C XXN Y Z R RSTU ABCD EHLUKL MNOPO ABCD C D Loss year 25% 40% 35% 10% 45% 45% 15% 40% 45% 10% 55% 30% 5% - 25% 15% - 60% 20% 20% 20% 20% 20% 51% 9% 40% Claim year 45% 10% 45% 55% 45% 15% 20% 10% 55% 20% 5% 20% 55% 40% 25% 10% 20% 5% 40% 40% 20% 51% 49% Would your answer in item 7 be different if you were told that A had arranged with D to hold the 51% share until the company had recouped its prior year losses, A then being free to sell the shares to whomever?

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Question 1 In which of the following examples has the continuity of ownership test been met so that the company may carry forward a tax loss Give brief reasons Assume that in the firstmentioned year t... View the full answer