Section 85 Rollover Calculator
Test a proposed T2057 elected amount before an accountant prepares the property-by-property joint election.
Deferred accrued gain
$200,000Immediate gain
$0Minimum elected amount
$100,000Share consideration
$250,000Elected amount is inside the simplified range
What this estimate includes
This tool models non-depreciable capital property only. The transfer consideration must include shares, and the non-share consideration can raise the minimum elected amount and trigger an immediate gain.
Form T2057 is a joint election signed by the transferor and the taxable Canadian corporation. Prepare a separate property analysis before filing.
Questions this calculator answers
What does a section 85 rollover do?
A joint election can defer some or all of the gain when eligible property is transferred to a taxable Canadian corporation for consideration that includes shares.
Does a section 85 transfer require shares?
Yes. CRA guidance states that the consideration must include at least one share or fraction of a share of the transferee corporation for the election to be valid.
When is Form T2057 due?
The form is generally due on the earliest date when any party to the election must file an income tax return for the tax year of the transfer.
Can this calculator model depreciable property?
No. It models a simplified non-depreciable capital-property range. Inventory and depreciable property have additional elected-amount and recapture rules.
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