Ben is incorporating his proprietorship and wishes to transfer the following assets using a Section 85 rollover:

Ben wishes to defer all gains at this time.He will receive the maximum note receivable possible,and the remainder of the transfer in preferred shares.
Required:
1.What is the elected transfer amount for each of the assets under Section 85?
2.What is the value of the note receivable and preferred shares that Ben must receive in order to defer any gains at this point in time?

Question

Ben is incorporating his proprietorship and wishes to transfer the following assets using a Section 85 rollover:
 
Ben wishes to defer all gains at this time.He will receive the maximum note receivable possible,and the remainder of the transfer in preferred shares.
Required:
1.What is the elected transfer amount for each of the assets under Section 85?
2.What is the value of the note receivable and preferred shares that Ben must receive in order to defer any gains at this point in time?

Quizplus · Accepted Answer

The Answer of Ben is incorporating his proprietorship and wishes to transfer the following assets using a Section 85 rollover:
 
Ben wishes to defer all gains at this time.He will receive the maximum note receivable possible,and the remainder of the transfer in preferred shares.
Required:
1.What is the elected transfer amount for each of the assets under Section 85?
2.What is the value of the note receivable and preferred shares that Ben must receive in order to defer any gains at this point in time?

Ben Is Incorporating His Proprietorship and Wishes to Transfer the Following