If land that is capital property is sold in an ITA $85(1)$ rollover and the elected amount is less than its ACB because of a decline in FMV$,$ a capital loss will always be immediately allowed.

A$.$ True because the elected amount is less than the ACB, which is a capital loss.

B$.$ False because, if the elected amount is less than the ACB, that would result in a capital gain.

C$.$ False because if the seller and purchaser were affiliated persons, the capital loss would be initially disallowed.

D$.$ True because a key benefit of ITA $85(1)$ rollovers is that capital losses will always be immediately allowed.