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To: scion who wrote (2943)	11/9/2010 7:27:27 PM
From: scion	Respond to of 53574

Transfer to a related person for less than fair market consideration: It is not uncommon for sellers to transfer property to a “related” buyer for less than fair market consideration without realizing that such a transfer clearly leaves them open to double taxation. More specifically, at the time of transfer, the seller would be deemed to have transferred the property at fair market value and would accordingly have to pay income tax computed on the basis of this assumption. Later, when the recipient eventually disposes of the property, the tax would be based upon the difference between the selling price and the nominal value that he or she previously paid and not upon the difference between the selling price and the deemed proceeds of the disposition when the property was first transferred. How to avoid Canada Revenue Agency tax traps by Paul Anderson businesstodaymagazine.com imaba Share Tuesday, November 09, 2010 6:59:46 PM Re: scion post# 76032 Post # of 76047 Quote: Under Section 160, if the transfer is made during the taxation year in which the tax is owed, or at any time thereafter, the recipient of the property (the transferee) can be held personally responsible for all or part of the tax owed by the transferor up to the shortfall for the fair market value paid for the property Quote: Very interesting siliconinvestor.com