1. Describe the tax implications of net capital losses on an acquisition of control for the following

   • Carry backs and carry forwards

   • The adjusted cost base (the “ACB”) of non-depreciable capital property of a corporation exceeds the fair market value (the “FMV”) of non-depreciable capital property immediately before the time that control of the corporation is acquired

   • Immediately before an acquisition of control, what can a corporation elect to do with capital property? Why?

2. Describe the tax implications of non-capital losses on an acquisition of control

Answer rating: 100% (QA)

1 a Carry Backs Generally losses incurred before acquisition of control cannot be deducted for the taxation years ending after the acquisition of cont... View the full answer