Section 85 Rollovers

As I eat lunch I am reminded of the things that I studied last, night, which is a good thing since I should retain something.

Of course the main thing I can remember about Section 85 rollovers is that it gave me a headache :)

Of course everyone else knows that using the provisions of the income tax act (section 85) one can rollover the assets of a proprietorship, partnership, corporation to a new corporation. I wish the fun ended there, but then you have to consider the nature of the assets and liabilities transferred, the share and none share consideration received, how this impacts PUC, and the ACB of the share and non-share consideration received by the transferor.

Now I know why more and more computers are doing the work of analyzing the different scenarios and combinations of NSC and share consideration. It must save a lot of time, rather that computing the different scenarios manually, although is you've been doing it for a couple decades I suppose the information would eventually sink in :)

As I read the comment i feel i should point out i'm not really an accountant yet, so if using 85 when pod excceed the fmv, i suppose you don't have to second guess yourself, i was just commenting on my studies

Also although i aspire to be a CGA some day the letters in the blog link do not stand for the accounting designation but an acronym for something completely different