A fourth strategy to deal with double taxation of your shares also requires the windup of your professional corporation within one year of your death to create a capital loss to offset your capital gain.
One strategy to eliminate double taxation on the value of your professional corporation’s shares uses a windup of the corporation to create a capital loss that offsets your capital gain.
The Corporate Pipeline strategy, in summary, requires the creation of a new corporation at death to allow your heirs to extract your professional corporation’s assets on a tax-free basis.
Your estate plan should include strategies to reduce Ontario Estate Administration Tax
An often-overlooked issue for incorporated healthcare professionals is the potential for the value of their professional corporation shares to be taxed twice (i.e. “double tax”).
