Which of the following assets CANNOT be transferred to a corporation under the provisions of ITA 85(1)?
A)Real property owned by a non-resident person and used in the year in a business carried on by that person in Canada.
B)Canadian Resource Property.
C)Eligible Capital Property.
D)Prepayments.

Question

Quizplus · Accepted Answer

Prepayments cannot be transferred to a corporation under the provisions of ITA 85(1) because they do not constitute a type of property that is eligible for rollover under this section. ITA 85(1) generally allows for the transfer of capital property, depreciable property, and eligible capital property, among others, but does not include prepayments, which are considered current assets, not capital assets.

Which of the Following Assets CANNOT Be Transferred to a Corporation