Tax Law Update – Bill C-208 lowers taxes on passing family businesses down to the next generation
Owners of family businesses will gain new tax advantages from a bill that has just passed and is expected to come into effect shortly.
Currently, selling your business to a complete stranger gives you tax benefits that you would lose if you sold to a family member. Bill C-208 extends these benefits to cases where shares in an active business are transferred to a company that is owned by a child, grandchild, or sibling. The sale of shares would now be treated as a capital gain instead of a dividend, meaning you would be taxed at a lower rate and potentially [read more…]