- TP-518-V Transfer of Property by a Taxpayer to a Taxable Canadian Corporation
You may elect to be exempted from the rule under which the sale price of a property is equal to its FMV on the date of transfer if you transfer property to a taxable Canadian corporation for a consideration that includes a share of the capital stock of the corporation. To be exempted, you and the transferee (the corporation or partnership in question) must first make an election with the CRA in order to agree on an amount to be deemed the sale price of the property. Then complete form TP-518-V, Transfer of Property by a Taxpayer to a Taxable Canadian Corporation. As a rule, you must enter the amount agreed on and indicated in the election form you submitted to the CRA (form T2057). You may, however, agree on a different amount if the conditions mentioned in form TP-518-V are met.
By completing and filing form TP-518-V, you may also make an application to the Minister to amend a previously filed form, in order to agree on an amount (if this has not already been done), to be deemed to have never agreed on an amount, or to agree on a new amount. You must file form TP-518-V separately from any tax return, before the later of the following dates:
- the filing deadline for your tax return or for the corporation's tax return for the taxation year in which the transfer occurred, whichever is earlier; and
- the last day of the two-month period following the end of your taxation year or the corporation's taxation year, whichever ends later.
You must enclose with this form a copy of every document filed with the CRA in accordance with subsection 85(1) .