Tax Deferral

Section 85 vs Section 86 Rollovers: Tax-Deferred Restructuring for Canadian Businesses

Section 85 vs Section 86 Rollovers: Tax-Deferred Restructuring for Canadian Businesses

Section 85 and Section 86 rollovers are essential Income Tax Act tools that let Canadian taxpayers transfer property or exchange shares without immediate capital gains tax. Ideal for incorporating sole proprietorships, estate freezes, or corporate reorganizations, these strategies preserve value through tax deferral while meeting CRA rules like T2057 filings.

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