Section 85 of the Income Tax Act allows the rollover of many types of assets to a corporation at elected values, a procedure that can avoid taxes being incurred at the time of the transfer. There are, however, certain categories of assets that are ineligible for this rollover provision. Indicate which categories of assets are ineligible for rollover under the provisions of Section 85. Briefly explain the reasons for these exclusions.

Question

Quizplus · Accepted Answer

The Answer of Section 85 of the Income Tax Act allows the rollover of many types of assets to a corporation at elected values, a procedure that can avoid taxes being incurred at the time of the transfer. There are, however, certain categories of assets that are ineligible for this rollover provision. Indicate which categories of assets are ineligible for rollover under the provisions of Section 85. Briefly explain the reasons for these exclusions.

Section 85 of the Income Tax Act Allows the Rollover