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 choose to use with his lifetime capital gains exemption and avoid paying tax on the transfer? Question 4 options: 480,000 1,000,000 450,000 30,000
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 choose to use with his lifetime capital gains exemption and avoid paying tax on the transfer? Question 4 options: 480,000 1,000,000 450,000 30,000
Chapter22: S Corporations
Section: Chapter Questions
Problem 52P
Related questions
Question
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
What is the elected amount that Derek should choose to use with his lifetime capital gains exemption and avoid paying tax on the transfer?
Question 4 options:
480,000
1,000,000
450,000
30,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you