Phone Phone

Estate Freeze

An estate freeze allows shareholders to ‘freeze’ their interest in a corporation by converting their capital growth shares to fixed value preference shares. Typically, these are done in the context of estate planning.

Rollover of Assets

A section 85 rollover allows an individual or corporation to transfer capital property to a corporation on a tax neutral basis, meaning no tax is paid on the transfer. Preference shares that are pegged at the aggregate value of the assets are taken back in exchange for the transfer of assets. The individual can then redeem these shares over time; the adjusted cost base portion of the fixed value preference shares can be removed from the corporation tax free. The value between the ACB and the FMV, when rolled in, can be redeemed as a deemed dividend. Section 85 rollovers can be an extremely useful tax planning tool.

Section 85 Rollovers, Section 86 Share Exchanges and Estate Freezes

With years of experience in corporate and tax, we routinely prepare the documents required for any rollover transaction, share exchange and estate freeze. These documents may include the APA, resolutions, T2057, Articles of Amendment as well as physically issuing the rollover, converted or freeze shares. We update all affected minute book ledgers and registers as well as take care of the Form 1 Notice of Change filing where required by the Reorg.

With years of experience in corporate and commercial law, Kalfa Law is your premier partner for your corporate and tax needs.

Insights

Employment Expense Disputes With The CRA

The Rule As a general rule, employees cannot generally claim expenses against income from their jobs under Canadian tax law. In contrast to businesses, which can generally deduct any expenses

Continue Reading
Read More...
The GST/HST New Home Rebate

Buying or renovating a new home is a major investment that strains the pocket book of most working class families. Fortunately, the CRA has a number of programs, including the

Continue Reading
Read More...
What Do Small Businesses Need to Know About Submitting GST/HST

If you have a business and collect GST/HST, managing your GST/HST obligations can be complicated. If you operate a business and your worldwide sales exceed $30,000 during any calendar quarter

Continue Reading
Read More...
Close Menu

Book an Appointment 1-800-631-7923

Speak with a Lawyer
1-800-631-7923

Email Us
reception@kalfalaw.com