Question
PLEASE HELP ME ASAPPP Billy Bragg owns a depreciable property with a capital cost of $96,000 and a fair market value of $126,000. It is
PLEASE HELP ME ASAPPP
Billy Bragg owns a depreciable property with a capital cost of $96,000 and a fair market value of $126,000. It is the only asset in its CCA class and the UCC balance for the class is $86,000. Billy uses Section 85 to transfer this property to his new corporation at an elected amount at FMV. In return for the property, he takes a note payable to himself for $86,000 (boot), in addition to the boot, common shares which have a fair market value of $30,000. Required: What are the tax implications of this transaction for both Billy and his new CCPC? (Fill in blanks with correct number
Billy will have a taxable capital gain of:
Billy will have recapture of CCA of:
The CCPC will have a depreciable asset with a capital cost of:
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