Corporate tax planning
- Review of your corporate structure and owner compensation
- Holding companies and passive investments
- Income splitting within the tax on split income (TOSI) rules
Selling your business: shares or assets?
- Compare after-tax proceeds of a share sale vs. an asset sale
- Qualify for the lifetime capital gains exemption (LCGE), including purifying non-active assets
- Safe income and pre-sale reorganizations
- Section 85 rollovers to defer tax on transfers to a corporation
- Timing the sale and preparing for the buyer's due diligence
Estate freezes and succession
- Fix the current value of your shares so future growth goes to your children or a family trust
- Limit the tax owed at death and support succession planning
- We design the tax plan; your lawyer prepares the legal documents
Working with your other advisors
- We coordinate with lawyers, valuators and financial advisors so the tax plan matches the legal steps
- Some transactions may involve valuations and, occasionally, CRA rulings
Common questions
What is an estate freeze?
Your common shares are exchanged for fixed-value preferred shares, and new common shares are issued to your children or a family trust, so future growth accrues to them.
What is the lifetime capital gains exemption?
Individuals can shelter capital gains on qualified small business corporation shares up to a lifetime limit, if holding-period and active-asset tests are met. The limit is indexed, so we confirm the current amount during planning.
When should I start planning a sale?
Ideally one to two years before the sale, because some tests, such as the 24-month holding period, take time to meet.
Do you prepare the legal documents?
No. We design the tax plan and your lawyer drafts the legal documents. We work closely with them.