I am a CPA, I hope to be better than average CPAs. Section 85 is commonly used when parents want to transfer their business to their children, it would be the same logic if an individual wants to transfer it to their parents instead of their children. However, what would happen when their parents are not Canadian residents if they were able to transfer it to a non-Canadian resident, does that mean they don't have to worry about paying tax on CG forever? I am looking forward to discuss with you :)
"I highly don't recommend reading it " 😂😂 Thank you for these videos! It's much nicer listening to you then my eyes closing involuntarily while reading the CRA site. 😜
My husband and I are the shareholders of a corporation. I am the sole proprietor as well who wants to roll my business over to our corporation. Do I need to fill up form T2057 or use section 85. The only assets I have are my computer and my printer. I am preparing taxes.
Hey Sue - if the only assets are truly just a computer and printer it doesn't sound like a S85 is needed. However without knowing the full picture of things we couldn't really give a definitive answer. It's one of those "you would be best to consult with your accountant" type of questions, unfortunately.
Simpler for sure, but sometimes it's hard to tell in the early days whether the business will be successful. Plus, there are some tax benefits for running your early losses in a sole proprietorship, especially when you haven't quit your day job yet!
In my case I did rollover using section 85. Goal is to move the ownership of a corporation to holding company. the impact here is I got preferred shares.will i still qualify for lifetime capital gains?
Hi Can you discuss about capital reserve. What process needs to be followed to defer capital gain for corporations
I am a CPA, I hope to be better than average CPAs. Section 85 is commonly used when parents want to transfer their business to their children, it would be the same logic if an individual wants to transfer it to their parents instead of their children. However, what would happen when their parents are not Canadian residents if they were able to transfer it to a non-Canadian resident, does that mean they don't have to worry about paying tax on CG forever? I am looking forward to discuss with you :)
Great help. Thanks! Question: As a previous sole prop with about $100,00] in assets, equipment and now incorporated for 1 year, what do i do!?
Thanks for the video! Can this form be used when transferring a rental property from a personal name to a holding company?
"I highly don't recommend reading it " 😂😂 Thank you for these videos! It's much nicer listening to you then my eyes closing involuntarily while reading the CRA site. 😜
😄You are most welcome! Glad you enjoy our cheesy jokes!
You’re very good and have the best hair 😂.
Thank you! Did you know that every time someone compliments my hair, an angel gets their wings? True.
Great video!!
My husband and I are the shareholders of a corporation. I am the sole proprietor as well who wants to roll my business over to our corporation. Do I need to fill up form T2057 or use section 85. The only assets I have are my computer and my printer. I am preparing taxes.
Hey Sue - if the only assets are truly just a computer and printer it doesn't sound like a S85 is needed. However without knowing the full picture of things we couldn't really give a definitive answer. It's one of those "you would be best to consult with your accountant" type of questions, unfortunately.
Wouldn't it be just simpler if one started as a corp instead of sole-prop?
Simpler for sure, but sometimes it's hard to tell in the early days whether the business will be successful. Plus, there are some tax benefits for running your early losses in a sole proprietorship, especially when you haven't quit your day job yet!
In my case I did rollover using section 85.
Goal is to move the ownership of a corporation to holding company.
the impact here is I got preferred shares.will i still qualify for lifetime capital gains?
Yep
You'll be smarter than your average CPA, nice one ha ha ha!