What’s an estate freeze and when should I do one?
An estate freeze exchanges your existing common (growth) shares in an active corporation for fixed-value preferred shares at today’s FMV under a joint s. 85 or internal s. 86 rollover,…
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Why would I set up a Holdco above my operating company?
A Holdco above your operating company gives you five core benefits: (1) creditor protection of accumulated after-tax retained earnings, (2) income-splitting flexibility (usually paired with a family trust), (3) multiplication…
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What’s the deadline for filing a joint T2057 for a Section 85 rollover?
Form T2057 (the joint s. 85(1) election) is due on or before the earliest income tax return filing due date of either party (transferor or transferee) for the tax year…
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How to Wind Up an Ontario Corporation Tax-Free (Section 88) — 12 Steps
12-step 2026 playbook to complete a Section 88(1) tax-free wind-up of an Ontario subsidiary into its parent: elections, PUC bump, safe income, and CRA clearance.
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When should I use a Section 85 rollover in Canada?
Use a Section 85 rollover under Income Tax Act s. 85(1) when you are transferring eligible property (real estate, depreciable property, inventory, eligible capital property, most shares) to a taxable…
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What’s the difference between RDTOH and CDA?
RDTOH (Refundable Dividend Tax on Hand) is a notional tax account tracking refundable Part I or Part IV tax the corporation has paid; the CRA refunds $38.33 for every $100…
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How to File Your Bare Trust T3 Return — 8 Steps (2026)
The 8-step 2026 CRA-compliant bare trust T3 filing playbook: identifying trust arrangements, Schedule 15, exemptions, penalties, and safe harbours.
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How do I claim intercorporate dividends between my Holdco and Opco?
Dividends from a connected Canadian corporation are generally deductible in the recipient Holdco under Income Tax Act s. 112(1), producing no immediate income inclusion at the Holdco level. Part IV…
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What CCA class does my company car fall into?
A passenger vehicle purchased for over $39,000 (before HST/QST) is Class 10.1, with a per-vehicle capital-cost cap of $39,000 for 2026 acquisitions and no recapture on disposal. Passenger vehicles at…
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Can I deduct my home office expenses through my corporation?
Yes, but only if the home office qualifies under Income Tax Act s. 18(12): it must be either the principal place of business or used exclusively to earn business income…