Section 85 Rollover Elected Amount Calculator

Incorporating an existing business doesn't have to trigger tax on the spot. The elected amount you choose decides exactly how much gain gets recognized now versus deferred.

Reading This Tool

How To Use This Calculator

Enter the property's fair market value, its cost base, and any cash or note taken back alongside shares.

The elected amount must sit between the cost base (or any boot received, whichever is higher) and fair market value. Elect at the low end and the whole gain defers into the shares received. Elect at fair market value and there's no deferral at all, sometimes exactly what you want if there's a loss carryforward to use up.

Your Inputs

Fair Market Value Of Property Transferred $2,000,000

Adjusted Cost Base $300,000

Cash Or Note Taken Back ("Boot") $100,000

Elected Amount $300,000

The elected amount slider will auto-correct to the nearest valid value if your other inputs move it out of the allowed range between cost base or boot, whichever is higher, and fair market value.

Result Of This Election

Gain Deferred Into The Shares

Gain Recognized Now

ACB Of Shares Received

Total Gain: Recognized Now vs. Deferred

Recognized Now Deferred Into Shares

A genuine Section 85 rollover requires filing Form T2057 (or T2058 for a partnership) by the earliest of the relevant filing deadlines, and involves other conditions around share consideration and non-arm's length pricing not modeled here.

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