Transfer of Assets to Shareholder’s Child: Shareholder Benefit
A January 5, 2026 Court of Quebec case considered whether a corporation’s sale of a cottage to the shareholder’s sons resulted in a denied capital loss to the corporation and a taxable shareholder benefit. In 2015, the corporation sold a cottage that it had constructed for $1,248,821 to the shareholder’s sons for $700,000. Following an audit, Revenu Québec (RQ) denied the corporation’s capital loss of $406,934 on the basis that the cottage was personal-use property.…
