New law means significant tax relief when you pass your business on to your kids

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New law means significant tax relief when you pass your business on to your kids
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Under the old law, business owners took an extra tax hit if they sold to their children

Let’s take a look at what the bill changed and how it affects the sale of your business to the next generation.Prior to the passing of Bill C-208, the Income Tax Act dictated that when parents sold shares of a business to a family member’s corporation, like a child or grandchild’s holding company, the proceeds would be taxed as dividends rather than capital gains.

Now that sales of company shares to family members receive capital gains treatment, sellers may also be able to take advantage of the They also need to be active. A corporation that owns an investment portfolio or a collection of apartment buildings, for example, doesn’t qualify.Article content

 

End multinationals, end corporate personhood and enforce a rule of law!

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