Minimize tax asset sale
 

Anyone know how to minimize capital gains tax on an asset sale?
Buyer absolutely refuses to do share sale. This is a commercial property.

I rather buy a new porsche for the amount taxed!

Just asking RS before I go to a tax advisor.

I could tell you why they don't want to do a share sale, since they would be on the hook for everything on your company (bad debts etc etc) usually no one would take on that stuff.

think of it this way, they're gonna have to pay property transfer tax (2% less a few thousand)

you might be able to do something with the Capital Cost Allowance but the accountant/tax advisor will figure that part out for you. Not much you could do since its not a residential place.

normally share sales price is less than asset sales price (taking out the effect of taking/not taking the liabilities) on the basis that the seller will pay greater tax - so that's how you offset the tax, negotiate better

this is a very simplified point - there is WAY more to it than that, but you get my point

sell it for less :troll:

lol...jokes aside, hard to give you an answer without any details.
I assume this is a land + building held under corporation? Questions such as "Have you been taking CCA on the building?", "Have you been operating your business in the property", etc will affect your tax & options

TBH, capital gain is already taxed at a very favourable rate. If you have been taking CCA from the building, you might get dinged even more tax than just the capital gain amount. (i.e. recapture)

If the buyer absolutely refuses to buy the corporation as a whole, there is really not much tax saving option.