When a depreciable asset is transferred in an ITA 85(1)rollover, the transferor may elect a value in excess of the capital cost of the asset. For the transferee corporation, the elected value will be the capital cost for CCA purposes.

Question

Quizplus · Accepted Answer

Under ITA 85(1) rollover, the elected amount cannot exceed the original cost of the asset to the transferor. The elected value becomes the capital cost to the transferee for CCA purposes, but it cannot be more than what the transferor originally paid for the asset.

When a Depreciable Asset Is Transferred in an ITA 85(1)rollover