Ms. Shlemeel has come to you, her accountant, for income tax advice on this proposed transaction....

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Ms. Shlemeel has come to you, her accountant, for income tax advice on this proposed transaction. (a) (b) (c) Identify, with a brief explanation, the business assets that: (12 minutes) (i) (ii) should not be transferred to the corporation at all, and should be transferred to the corporation, but cannot or should not be transferred under a subsection 85(1) election and the amount and type of consideration that should be received for each asset. For the assets that should be transferred under a subsection 85(1) election to the corporation, indicate the maximum amount of debt (to the nearest multiple of $1,000) that can be taken. Also, indicate the amount of the shares that can be taken as consideration to defer all possible capital gains, losses and other income and to avoid other adverse tax consequences. (13 minutes) Compute the ACB of the consideration and the PUC for tax purposes of the shares received from the corporation on the transfer under a subsection 85(1) election. (3 minutes) Ms. Shlemeel has come to you, her accountant, for income tax advice on this proposed transaction. (a) (b) (c) Identify, with a brief explanation, the business assets that: (12 minutes) (i) (ii) should not be transferred to the corporation at all, and should be transferred to the corporation, but cannot or should not be transferred under a subsection 85(1) election and the amount and type of consideration that should be received for each asset. For the assets that should be transferred under a subsection 85(1) election to the corporation, indicate the maximum amount of debt (to the nearest multiple of $1,000) that can be taken. Also, indicate the amount of the shares that can be taken as consideration to defer all possible capital gains, losses and other income and to avoid other adverse tax consequences. (13 minutes) Compute the ACB of the consideration and the PUC for tax purposes of the shares received from the corporation on the transfer under a subsection 85(1) election. (3 minutes)

Answer rating: 100% (QA)

a i Personal use assets such as Ms Shlemeels personal vehicle clothing jewelry furniture for her hom... View the full answer