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Unformatted text preview: If she makes an election under ITA 14(1.01) : The franchise is specifically identified and removed from the CEC account Balance January 1, 2010 $210,819 Remove Franchise Cost (3/4)($125,000) ( 93,750 ) Balance in the CEC Account $117,069 Because the franchise is sold: Proceeds of Disposition $175,000 Cost of Franchise (125,000 ) Capital Gain ` $ 50,000 Taxable Capital Gain $25,000 Ms. Landau would use the election in order to generate capital gains against which to offset capital losses....
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- Spring '11