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I own 50% of a corporation that owns a vehicle. I want to…

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I own 50% of a...
I own 50% of a corporation that owns a vehicle. I want to transfer the vehicle from the corporation to myself the shareholder. I understand I have to pay RST at the market value of the vehicle, but I want to transfer the vehicle for free or for $1. Can I do this as I already paid for the vehicle when the corporation purchased it, and if so, how would I treat that on the books
Submitted: 1 month ago.Category: Canada Tax
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Answered in 11 hours by:
1/4/2018
Canadian Tax Expert: Patrick Mullis, Certified Public Accountant (CPA) replied 1 month ago
Patrick Mullis
Patrick Mullis, Certified Public Accountant (CPA)
Category: Canada Tax
Satisfied Customers: 21
Experience: Capital Accounting Analyst / Financial Analyst at Norfolk Southern
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In a corporation you would have to transfer the vehicle out at fair market value. and recognize any gain above the depreciated value of the truck. Also you would recognize distribution income from the receipt of the vehicle. Ex: The company bought a truck for 20,000 depreciated 15,000 (ie book value is 5,000) but the fair value is 15,000. you can take the truck as a distribution of 15,000 and the company recognizes a 10,000 gain on sale of the asset. Hope this helps if so please rate me 5 stars.

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Patrick Mullis
Patrick Mullis
Patrick Mullis, Certified Public Accountant (CPA)
Category: Canada Tax
Satisfied Customers: 21
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Experience: Capital Accounting Analyst / Financial Analyst at Norfolk Southern

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