As Quebec entrepreneurs grow their businesses, many eventually begin thinking about:<\/p>\n\n\n\n
In many of these situations, one of the most commonly used tools by my clients is the Section 85 rollover.<\/p>\n\n\n\n
A Section 85 rollover is a mechanism under the Canadian Income Tax Act<\/em> that can allow certain assets or shares to be transferred to a corporation without immediately triggering taxes that would normally arise from the transfer.<\/p>\n\n\n\n In simple terms, it may allow an entrepreneur to move assets or shares <\/a>into a corporation on a tax-deferred basis, provided certain conditions are met.<\/p>\n\n\n\n These transactions are frequently used in Quebec corporate reorganizations involving privately held businesses.<\/p>\n\n\n\n Section 85 rollovers are commonly used in situations such as:<\/p>\n\n\n\n For many entrepreneurs, these reorganizations form part of a broader long-term business and tax strategy developed with their accountant or tax advisor.<\/p>\n\n\n\n Although the concept may sound straightforward, a Section 85 rollover involves important legal and tax considerations.<\/p>\n\n\n\n A properly implemented reorganization may require any or all of the following:<\/p>\n\n\n\n If the transaction is not structured properly, unintended tax consequences can arise.<\/p>\n\n\n\n Corporate reorganizations are not only about taxes. They are often about preparing a business for the future.<\/p>\n\n\n\n Whether the objective is protecting assets, simplifying ownership, preparing for succession or improving corporate structure, a well-planned reorganization can provide important long-term benefits for Quebec entrepreneurs and privately held businesses.<\/p>\n\n\n\n Given the complexity of these transactions, legal and tax advisors will often work together to ensure the reorganization is implemented properly and aligned with the client\u2019s overall business objectives.<\/p>\n\n\n\n Planning a corporate reorganization or considering a holding company structure?<\/p>\n\n\n\nWhen Is a Section 85 Rollover Used?<\/h2>\n\n\n\n
\n
Why Proper Planning Matters<\/h2>\n\n\n\n
\n
A Practical Approach<\/h2>\n\n\n\n