Research essay on individual taxation

Here is the assignment:

Investment Credit Recapture

This is a research problem/paper.

Assume you have a carpet cleaning business and you purchased an asset on May 15, 2007 for $100,000. The full 10% investment credit was taken on the asset.

In June 2011, a code section 108 election is made to exclude gain arising from the business indebtedness in the amount of $7000.

Is this a case for investment credit recapture? If yes, by how much. If no, explain the reasons.

Please complete a 1500 word to discuss the above scenario.

Habilidades: Research Writing

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