Derek has shares of UltFrisCorp that he would like to transfer, using Section 85, to a holding company that he has recently setup. The ACB and PUC of his UltFrisCorp shares are $30,000. The fair market value of the shares are $1 million. Derek also has $450,000 in his lifetime capital gains exemption that he would like to use as part of this transfer. What is the elected amount that Derek should chose in order to use his lifetime capital gains exemption, and avoid paying tax on the transfer. 1,000,000 30,000 480,000 450,000
Derek has shares of UltFrisCorp that he would like to transfer, using Section 85, to a holding company that he has recently setup. The ACB and PUC of his UltFrisCorp shares are $30,000. The fair market value of the shares are $1 million. Derek also has $450,000 in his lifetime capital gains exemption that he would like to use as part of this transfer. What is the elected amount that Derek should chose in order to use his lifetime capital gains exemption, and avoid paying tax on the transfer. 1,000,000 30,000 480,000 450,000
Chapter22: S Corporations
Section: Chapter Questions
Problem 52P
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Question
Transcribed Image Text:Derek has shares of UltFrisCorp that he would like to transfer, using Section 85, to a holding company
that he has recently setup. The ACB and PUC of his UltFrisCorp shares are $30,000. The fair market
value of the shares are $1 million. Derek also has $450,000 in his lifetime capital gains exemption
that he would like to use as part of this transfer.
What is the elected amount that Derek should chose in order to use his lifetime capital gains
exemption, and avoid paying tax on the transfer.
1,000,000
30,000
480,000
450,000
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