An individual wishes to transfer the assets of an unincorporated business to a corporation using ITA 85. He wishes to remove the maximum amount of cash from the corporation without incurring current taxation. In addition to cash, he will receive common shares in the new company. What values should he elect for the transfer of the assets? If he elects these values and removes the maximum amount of tax free cash, what will be the PUC and adjusted cost base of the common shares?

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The Answer of An individual wishes to transfer the assets of an unincorporated business to a corporation using ITA 85. He wishes to remove the maximum amount of cash from the corporation without incurring current taxation. In addition to cash, he will receive common shares in the new company. What values should he elect for the transfer of the assets? If he elects these values and removes the maximum amount of tax free cash, what will be the PUC and adjusted cost base of the common shares?

An Individual Wishes to Transfer the Assets of an Unincorporated