Canadian senior moving to USA

BCboy · Post by **BCboy** » Thu Feb 23, 2012 4:38 pm

I am Can my wife a PR in Can , US citizen we are moving to USA.
Was told I must sell my LTD co. Then repurchase what is the method of calculating shares value?

JGCA · Post by **JGCA** » Thu Feb 23, 2012 5:42 pm

To value trh company shares its Fair Market Value, in most cases in a small privately owned corp CCPC its usually book value = Retained Earnings plus any increase in value of major assets on hand , ex if you own som investments paid $ 100 for then but time of move FMV is $ 120 you add $20 to the retained earnings its a simple way to get a figure but you really need to do a valuation if you are talking about values exceeding book values.

BCboy · Post by **BCboy** » Thu Feb 23, 2012 6:34 pm

Can I use the once in a lifetime tax benefit for family business sale I believe it is $500,000?

JGCA · Post by **JGCA** » Thu Feb 23, 2012 7:03 pm

Super capital gains exemption on sale of small business shrs is now $750K ( up from $500K) you can use it if you sell your shares ONLY to someone other than yourself otherwise sec 84.1 will deem it a dividend, its complicated but as long as its a sale to third party it will qualify IF you corp meets the definition of eligble shares.

BCboy · Post by **BCboy** » Thu Feb 23, 2012 8:19 pm

Wow good info thank you
Now a hypothetical question.
LTD owns retail store inventory, leasehold improvements and vehicles value $250,000 so I value shares at that. Would that be capital gain or income?
I then buy shares back for $250,000.
So then could I declare my profit each year as a dividend, if so how is it taxed.
As I will be living in USA will I continue to get CPP & OAP?
If so are they taxable in CAnada - USA or both?

JGCA · Post by **JGCA** » Thu Feb 23, 2012 8:25 pm

This question I feel is getting out of cross border topic, I will answer you just e-mail me seperately, BTW you really need an accountant its complicted I can assist youif you need e-mail me.