On January 1, 2023, a newly-formed personal trust purchased shares of Opco from Dad, who owned them throughout the preceding two years. The trust sold the shares on June 30, 2023, to an unrelated person. The CRA found that the…
Subsection 110.6(8) issues
Subsection 110.6(8) denies the capital gain exemption for a gain on a share if insufficient dividends are paid on it and the share is not a “prescribed share”. An ordinary common share is a prescribed shares under Reg 6205(1). A…
Are persons related to themselves?
When are persons related for the purposes of subparagraph 110.6(14)(c)(ii)? A person is not generally deemed to be related to himself except for certain purposes (paragraph 251(5)(c), subparagraph 55(5)(e)(ii), subsection 256(1.5) and determining whether corporations are associated). Compare this to…
Crystallizing and estate planning
Is it always a good idea to take full advantage of the capital gain exemption (CGE) by crystallizing? Assume Ms X crystallizes her Opco shares, but Opco morphs into an investment holding company by the time of her death. In…