Assets remaining from closed Sole Proprietorship and fiscal dates

Tax Topics
1

*Techincal question

Taxpayer - sole proprietor in 2017 (Jan - Dec), used a personal vehicle, & UCC on Dec 31, 2017 for two small assets (Hard drive & software) were $160 & $130

2018 operated under an incorporated business.

Do these nominal assets need to be disposed of from the sole prop?

Also, in the 2018 T1 file on schedule T2125 it will be marked YES to the question “Was this your final year of business?”

However, what should the fiscal period be (From:_____ To:________)?

2

I would create a terminal loss in 2018 unless there were additional assets that should be moved to the corporation in which case you should do a section 85 rollover.
I would just select “Business Closed”

1 Like
3

Just the two nominal assets.
What if they are considered sold at UCC from the sole prop (book proceeds of disposition) and then sold to the corp at a cost = UCC - no gain/loss or just not sold to the corp at all because they are of no use (have to check if these assets are in use - I know that software is not).

Thanks kindly