Tax changes are set to come into force on January 1, 2017 with respect to the income tax treatment of eligible capital property (notably goodwill). The new tax rules will mean higher income taxes on the sale of goodwill and the inability to defer income from the sale of goodwill using a corporation. Business owners should contact our experienced Toronto tax lawyers immediately in order to carry out a corporate reorganization before the end of the year to take advantage of the tax savings offered by the old rules. The reorganization must be completed by December 31, 2016.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."