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  1. business
  2. accounting
  3. ms. y sells a stock (adjusted cost base $900,000 )

Ms. Y sells a stock (adjusted cost base $900,000 ) to her husband for $800,000...

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Accounting

image Ms. Y sells a stock (adjusted cost base $900,000 ) to her husband for $800,000 cash (the fair market value of the stock) and elects out of the interspousal rollover. Which one of the following statements is TRUE? a. The attribution rule will apply to attribute to Ms. Y any future dividends received by her husband on the shares as well as any capital gains or losses if her husband sells the shares. b. Ms. Y will report an allowable capital loss of $50,000 which she can only deduct against taxable capital gains. C. Ms. Y does not have a capital loss because transfers to a spouse are made for proceeds equal to adjusted cost base. d. Ms. Y does not have a capital loss because of the superficial loss rules

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