Transfer Assets.
Defer the Tax.
Moving highly appreciated assets—like an existing business or real estate—into a corporation usually triggers a massive tax bill. A Section 85 Rollover allows you to execute the transfer completely tax-free, deferring the capital gains until you actually sell the asset to a third party.
Tax Triggered
$0
When executed correctly
Required Form
T2057
Joint election required
Eligible Assets
Broad
Business, real estate, stocks
Consideration
Shares
Must receive corporate shares
When Do You Need a Section 85 Rollover?
This powerful tax election is the foundation of almost all advanced corporate reorganizations.
Incorporating a Sole Proprietorship
If your unincorporated business has grown and accumulated goodwill or valuable equipment, moving it into a corporation without Sec 85 would trigger tax on that growth. We roll it over seamlessly.
Estate Freezes
To lock in your current tax liability and pass future growth to your children, you must exchange your common shares for fixed-value preferred shares. Sec 85 makes this exchange tax-deferred.
Transferring Real Estate
Moving personally held rental properties into a holding company for liability protection or tax planning requires a Sec 85 election to avoid triggering immediate capital gains and recapture.
Calculate Your Deferred Tax
See how much capital you preserve by using a Section 85 rollover instead of a standard transfer.
Section 85 Rollover Tax Deferral Estimator
Estimate the capital gains tax you can defer by transferring an appreciated asset into a corporation using a Section 85 rollover.
Transfer Analysis
Immediate Tax Deferred
$106,000
*The tax is deferred, not eliminated. The corporation assumes the original cost base.
This tool is for general information only and does not replace professional tax or accounting advice.
Why Choose Teixeira Accounting?
At Teixeira Accounting Firm Inc., we don't just record history; we write your financial future. Most accounting firms are reactive—they wait for you to bring them problems. We are proactive architects of your wealth and business growth.
Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.
The Teixeira Advantage
Proactive Tax Strategy
We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.
Bulletproof Compliance
Our rigorous quality control ensures your filings are accurate, minimizing audit risk.
Dedicated Advisory
You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.
Section 85 Rollovers — FAQs
Execute Your Transfer Flawlessly.
Section 85 elections are highly technical and require precise valuations and legal documentation. We handle the entire process to ensure the CRA accepts your deferral.
Book a Reorganization Consult