Ali Manufacturing Inc. owns shares in Ali Holdings Inc, which it will transfer to Family Holdings Ltd. using Section 85. The shares have an adjusted cost base of $35,000 and a fair market value of $5,000, and an elected transfer price of $5,000 is used. The $30,000 capital loss on this transfer:

		Will be disallowed and kept in the tax records of the transferor to be recognized when the corporation is subject to an acquisition of control or is wound up.
		Will be disallowed with no opportunity to deduct the loss in the future.
		Will be allocated to the ACB of the shares in the tax records of Family Holdings Ltd., as the transferor is a corporation.
		Will be carried forward as a net capital loss in the records of Family Holdings Ltd., and will be deductible in a future year against any capital gains that are earned by that corporation.