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Promissary note on t2 (liabilty)


#1

Where is the best place to account for a promissory note on T2?

The corporation purchased a business (assets & goodwill) & note is due in over a year (long-term liability)

Thanks


#2

Depending on your actual situation, look at

3140 - Long Term Debt
3147 - Private Loan
3261 - Due to Individual Shareholders (or 3260 - Due to Directors/Shareholders)
3300 - Due to related parties
There could be a few others as well… whatever best describes your situation.

If this refers to your section 85 rollover then I’m thinking it’s likely to be a 3261
If you want to keep that note separate from the day to day shareholder’s loan then pick one of the other accounts or use 2781 for the regular shareholder’s loan account.


#3

In this scenario one corp purchased a business (assets & goodwill) from another for $50,000.

S.85 scenario - sole proprietor ran business one year & incorporated.
Assets (computers - transferred @ UCC - no gain/loss).
GW was internally generated or may have to be realized on transfer.
If you have any input or can weigh in that would be great.

Thanks again - very helpful.