Ku Jung owns all of the shares of Jay Ltd. His adjusted cost base for these shares is $5,000. He has decided to retire, and has wound up the Company under the provisions of ITA 88(2). After the assets have been sold and all corporate taxes paid, there is $700,000 available for distribution. The balances in the tax accounts of Jay Ltd. are as follows: If Mr. Jung properly files all elections that would minimize the tax effect of the distribution, what is the maximum amount he could receive tax free?

Question

Ku Jung owns all of the shares of Jay Ltd. His adjusted cost base for these shares is $5,000. He has decided to retire, and has wound up the Company under the provisions of ITA 88(2). After the assets have been sold and all corporate taxes paid, there is $700,000 available for distribution. The balances in the tax accounts of Jay Ltd. are as follows:  If Mr. Jung properly files all elections that would minimize the tax effect of the distribution, what is the maximum amount he could receive tax free?

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The Answer of Ku Jung owns all of the shares of Jay Ltd. His adjusted cost base for these shares is $5,000. He has decided to retire, and has wound up the Company under the provisions of ITA 88(2). After the assets have been sold and all corporate taxes paid, there is $700,000 available for distribution. The balances in the tax accounts of Jay Ltd. are as follows:  If Mr. Jung properly files all elections that would minimize the tax effect of the distribution, what is the maximum amount he could receive tax free?

Ku Jung Owns All of the Shares of Jay Ltd