Which of the following would NOT be considered part of the boot received by a transferor in an ITA 85(1)rollover?
A)Bonds issued by the new corporation.
B)Redeemable preferred shares of the transferee.
C)The assumption of transferor debt by the transferee.
D)A non-interest bearing note issued by the new corporation.

Question

Quizplus · Accepted Answer

Redeemable preferred shares of the transferee are considered shares and not boot in an ITA 85(1) rollover. Boot typically includes cash or other property received, such as bonds or debt assumption.

Which of the Following Would NOT Be Considered Part of the Boot