ACCO 440 Lecture Notes - Lecture 8: Property Income, Tax Bracket, Old Age Security
16 Dec 2018
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Maxime bourque acco 440 - final exam. Non-arms length transfer of property = between related individuals. This section applies when transfer to spouse, common law partner. A gift is something you received with no considerations in return! For both the vendor and purchaser = fmv across the board. + (pod acb of the vendor) This section will automatically apply unless you elect out and revert back to section 69. There is a rollover permitted for the transfer of farm property to a child. The effect will be the same as for the section 73 (spouse). Also, since farm property are for business income, the attribution rules will not apply. Only applicable to spouse and related under 18. These rules are used to know who get taxed on property income generated by the transferred property. In fact, irregardless of where the money is legally deposited, section 74 might attribute back the property income generated from them.
