Jayson Lowe breaks down Canada's 2023 rules for passing shares to adult children. The rules are tedious and can apply for years after the sale. Parents and adult children file a joint election to pick one or two tax relief options.
Now with this new budget, 2023, what it does is it proposes rules designed to ensure that only genuine intergenerational share transfers take place. And that is under their definition for that. And the rules are, from what I've seen, appear to be very tedious. And it may operate for several years after share sale to the adult childs Corporation. And the rules that provide that a transfer, for example, the parent or the grandparent and their adult child may jointly elect to choose to rely on one or two transfer options for obtaining that tax relief.
