Watch Jeremy Herbert and John Fuller of Felesky Flynn LLP talk about some key angles to succession planning for farmers.
Source:
Additional notes:
When considering whether corporate shares are eligible for the rollover to a child, the underlying assets must have been used in an eligible farming business. While the farming business did not necessarily have to be operated out of the corporation, it must have been operated by a specified person or entity. (Subsection 70(10) “share of a capital stock of a family farm or fishing corporation”).
It is also important to consider the restrictions under Subsection 69(11), which are triggered if rolled property is subsequently disposed within 3 years.
As there are many such trips and traps, a specialist in the area should be consulted. Thank you to John Fuller, Jeremy Herbert, and Ian Cubbit for their comments on this issue.
Recorded June 11, 2019
This video is for general information purposes only and deals with dynamic, time-sensitive and complex matters that may not apply to particular facts and circumstances. The information provided should not be relied upon as a substitute for specialized professional advice in connection with any particular matter. For more information visit videotax.com/disclaimer. ©Video Tax News Inc. 2019, All Rights Reserved.