COMMERCE 4SC3 Lecture 10: chapter 16
14 Mar 2019
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Unlimited liability; not only corporate assets at risk but all his personal assets are also at risk. As a ccpc, tax on first k is about 14% and everything above is about % As individual, making over k, you"re getting taxed at about 50% Chapter says could take the assets from proprietorship, transfer to corporation and could defer tax liability of increased value in inventory, pp&e, intangibles, etc. Table given in class is pg. 3 documents for doing a transfer (section 85 rollover) Pg. 1 transferee has to be canadian taxable corporation. **capital property excluding depreciable property (i. e. land and shares) **depreciable property (i. e. building, patent, goodwill, machines, etc) Eligible capital property no longer a thing starting jan 1 2019; **inventory excluding real property (real property is land so this one wouldn"t be rolled over) Reason we"d want to do section 85 rollover is if value has gone up in these assets so that you don"t pay taxes.
