Professional accountants are often engaged by their clients to assist with transactions designed to accomplish objectives such as creditor-proofing, estate planning, corporate restructuring etc. Section 85 of the Income Tax Act is often required so that the client’s objectives can be met in a tax-efficient manner. The provisions are complex and interact with a number of related and anti-avoidance provisions.
This full-day seminar covers selected tax aspects of the transfer of property to a corporation and the use of the section 85 rollover rules. Each module contains specific examples and case examples designed to help participants review relevant tax theory and focus on major tax planning issues that need to be considered, including key anti-avoidance provisions to avoid and filing requirements
By the end of this course, participants will be able to:
Understand which types of property qualify for a tax deferred transfer under a section 85 election
Understand the upper and lower limits for the agreed amount with respect to the transfer of property under section 85
They types of consideration that can be received on a transfer as well as the implications of receiving certain types of property as consideration
The impact of section 85 on the PUC and ACB of shares received as consideration
The various anti-avoidance rules associated with section 85
How to correctly prepare a T2057 election
Purpose of Section 85
Conditions of application
Agreed amount – election and limits
Cost of consideration and other rules
Paid-up capital and legal characteristics of shares received
Anti-avoidance rules and other considerations
Election deadline and penalty
WHO WILL BENEFIT?
Accountants in public practice or industry who would like to better understand how section 85 works and how to correctly prepare a t2057 election will benefit from attending this seminar. Participants in this course may also find the Corporate Reorganizations and Advanced Tax Planning Strategies courses beneficial.
Time: 9:30am - 6:00pm
Passport - 1 Day
CPD Hours - 7