In deciding on the elected value to be used in an ITA 85 rollover, there are general rules that are applicable to all assets. Briefly describe these rules.

Question

Quizplus · Accepted Answer

The Answer is The general rules applicable to the elected value in a Section 85 rollover can be described as follows:
Ceiling Value - Fair market value of the asset transferred to the corporation.
Floor Value - The floor value will be equal to the greater of:
• the fair market value of the non-share consideration (boot)given to the transferor in return for the assets transferred; and
• the tax values (adjusted cost base or UCC)of the assets transferred.

In Deciding on the Elected Value to Be Used in an ITA