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