For Founders Law

Section 85 rollover

Also called s. 85 rollover, section 85 election, tax-deferred rollover

A rule in the Income Tax Act that lets a person transfer certain property to a taxable Canadian corporation in exchange for shares and defer tax on the gain, by filing a joint election with the CRA. It is often used when founders move a business or shares into a corporation.

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Related terms

Sources

  1. Income Tax Act, s. 85

General information about Ontario and Canadian law, not legal advice. All terms