On January 15, 2020, Chad Brant sells all of his common shares of Brant Inc., an eligible small business corporation. He had owned the shares for 15 years. The adjusted cost base of these shares is $600,000 and they are sold for $1,100,000. On February 15, 2020, $940,000 of these proceeds are invested in the common shares of Quint Ltd., a new eligible small business corporation. How much of the capital gain arising on the sale of the Brant Inc. shares can be deferred by the investment in Quint Ltd.? If the maximum deferral is elected, what will be the adjusted cost base of the Quint Ltd. shares?

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The Answer of On January 15, 2020, Chad Brant sells all of his common shares of Brant Inc., an eligible small business corporation. He had owned the shares for 15 years. The adjusted cost base of these shares is $600,000 and they are sold for $1,100,000. On February 15, 2020, $940,000 of these proceeds are invested in the common shares of Quint Ltd., a new eligible small business corporation. How much of the capital gain arising on the sale of the Brant Inc. shares can be deferred by the investment in Quint Ltd.? If the maximum deferral is elected, what will be the adjusted cost base of the Quint Ltd. shares?

On January 15, 2020, Chad Brant Sells All of His