Which of the following assets can be transferred by a partner to a Canadian partnership under ITA 85(2), but cannot be transferred to a Canadian corporation under ITA 85(1)?
A)Inventory of goods for resale.
B)Vacant land.
C)Inventory of real property.
D)Non-depreciable property which has declined in value since being purchased.

Question

Quizplus · Accepted Answer

Inventory of real property can be transferred to a Canadian partnership under ITA 85(2), but cannot be transferred to a Canadian corporation under ITA 85(1), as ITA 85(1) does not allow for the transfer of inventory property, including real property held as inventory.

Which of the Following Assets Can Be Transferred by a Partner