If an asset is transferred in an ITA 85 rollover at an elected value that results in a capital gain to the transferor, the cost to the transferee for CCA purposes will be the transferor's cost, plus one-half of the excess of the elected value over the transferor's cost.

Question

Quizplus · Accepted Answer

This statement is true according to the rules for calculating the transferor's deemed proceeds and the transferee's cost base for an ITA 85 rollover. The transferee's cost base will be the transferor's cost plus one-half of the capital gain realized on the transfer, which is represented by the excess of the elected value over the transferor's cost.

If an Asset Is Transferred in an ITA 85 Rollover