Mr. Couture would like to transfer his corporation to his son who has started to work in the business. His son will not have the funds to purchase all of the shares for at least 5 years. Which of the following will permit Mr. Couture to transfer the future growth of the company to his son without any immediate tax effect for himself?

Question

Quizplus · Accepted Answer

A reorganization of share capital allows for a tax-free rollover of shares to his son, allowing Mr. Couture to transfer the future growth of the company without any immediate tax effect for himself. Option A would result in a taxable event for Mr. Couture, and options C and D involve the dissolution of the corporation.

Mr Couture Would Like to Transfer His Corporation to His