On January 1, 2020, Saul Barkin Owns a Group of Shares

On January 1, 2020, Saul Barkin owns a group of shares with an adjusted cost base of $420,000. While these shares do not pay dividends, he expects that, during the coming year, their fair market value will increase to $640,000. At that point he expects to sell the securities in order to purchase a sailboat. None of these investments are eligible for the lifetime capital gains deduction.
Saul has employment income in excess of $250,000 and, given this, any additional income will be taxed at a combined federal/provincial rate of 52 percent.
He would like your advice on whether there would be any tax advantages associated with transferring these securities to a corporation.
In his province of residence:
• the corporate tax rate is 2.5 percent on income eligible for the small business deduction
• the corporate tax rate is 14 percent on other income
• the dividend tax credit is 25 percent of the dividend gross up for non-eligible dividends
Provide the requested advice, including an explanation of your conclusions.