Ask Allan a Tax Question and he will respond to you with an answer to your question within 24 hours!
If CCPC has three shareholders and each owns 33.33% shares in the company. And two shareholders sell their part of shares (5%) each. One sold it to his ex-wife and other one sold to some random person. The one who sold it to ex-wife has deposited the money in his personal bank account as he said he sold his part of shares so its his money. And other one deposited the money in business bank account. What will be the tax implications on business and personal?
When an individual shareholder sells his shares for more than the amount that he paid to acquire them, there will be a capital gain for that individual. One half of the capital gain will be included in his personal income in the year of the sale. It does not matter where the proceeds from the sale are deposited (personal or business account).
in Accounting & Taxation Services
Ready to leave your accounting and taxation worries behind?
Unit 20, 145 Traders Blvd E Mississauga ON, L4Z 3L3 Canada
Call: (905) 268-0150 Email: info@madanca.com
SOCIAL CONNECT