Transfers to the Corporation: Section 85 Rollovers

Nicholas P. Smith

I.     INTRODUCTION S.85(1) of the Income Tax Act (Canada) (the “ITA”)[1] allows a person to transfer property to a taxable Canadian corporation on a tax-deferred basis.  This rollover allows a person to defer the recognition of income, capital gains and/or recapture. II.     ELIGIBILITY REQUIREMENTS The eligibility requirements for a tax-deferred transfer under s.85(1) are discussed below.      A.     TRANSFEROR The person transferring the property must be a taxpayer as defined in the ITA.[2]  This includes individuals, corporations and trusts regardless of whether they are resident or…

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International and Interprovincial Tax Planning Issues for Individuals and Trusts

Nicholas P. Smith

I.     INTRODUCTION Planning for clients with assets and beneficiaries in multiple jurisdictions requires knowledge of residency and the deeming rules that could alter its common law meaning. The interprovincial source rules for the taxation of…

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