Brian Snow owns all of the common shares of Treeline Boots Ltd., a Canadian-controlled private corporation. The
Fantastic news! We've Found the answer you've been seeking!
Question:
- Brian Snow owns all of the common shares of Treeline Boots Ltd., a Canadian-controlled private corporation. The shares have a fair market value of $100,000, an ACB, and a PUC of $5,000. Brian would like to retire soon, so he has offered the company to his son, Walter. Walter is young and does not have a lot of disposable income. Brian approached you for your recommendation.
- Explain to Brian how his goals can be accomplished. Include the provision information (section from Income Tax Act to support your recommendation).
- Discuss the tax consequences to Brian per your recommendation.
- Explain the impact, if Brian decides to sell the shares at FMV to Paul, an arm’s length party.
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date: