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Which of the Following Transactions Would Result in the Taxpayer

Question 36

Multiple Choice

Which of the following transactions would result in the taxpayer being able to make a life- time capital gains deduction?

A) An individual sells 100 percent of the shares of a CCPC that uses 85 percent of its as- sets in the operation of an active business.
B) An individual sells 15 percent of the shares of a CCPC that uses 95 percent of its assets in the operation of an active business.
C) A CCPC sells 100 percent of the shares of another CCPC that uses 100 percent of its as- sets in the operation of an active business.
D) An individual sells 25 percent of the shares of a CCPC that uses 30 percent of its assets to produce property income.

Correct Answer: