Sec 85 transfer for a intangible asset

Tax Topics
1

I have a few questions regarding the Sec. 85 election. I would greatly appreciate assistance from the experts in this group.

Scenario:
Corp A has sold intangible property to corporation B and is filing a Section 85 election.

Date of transfer - June 1, 2024
FMV of property transferred - $500,000
Description of property transferred - Intangible property
ACB - $0
Elected/Agreed Amount - $1
Non-share consideration - $0
Share consideration (value) - $500,000

The lawyer has already prepared the purchase and sale agreement with the price adjustment clause.

Questions:

  1. What supporting documents are needed to be submitted to the CRA along with the election?
  2. Will a GST44 form be filed with the CRA? The issue is that the seller was an HST registrant at the time of the transfer, but the purchaser was not. The purchaser only became registered on June 24, 2024. How should the situation be addressed?
  3. Also, the HST return was due on Mar 31, 2025. However, the election GST44 was not filed before the filing due date. How to handle this?
  4. What journal entries are to be recorded in the books of the seller & purchaser, considering the elected amount is $1 and we are dealing with an intangible asset?

Thanks!