Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if land that is capital property is sold in an ita

If land that is capital property is sold in an ITA 85(1) rollover and the...

80.2K

Verified Solution

Question

Accounting

If land that is capital property is sold in an ITA 85(1) rollover and the elected amount is less than its ACB because of a decline in FMV, a capital loss will always be immediately allowed.
A. True because the elected amount is less than the ACB, which is a capital loss.
B. False because, if the elected amount is less than the ACB, that would result in a capital gain.
C. False because if the seller and purchaser were affiliated persons, the capital loss would be initially disallowed.
D. True because a key benefit of ITA 85(1) rollovers is that capital losses will always be immediately allowed.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students