With global economies significantly constrained and markets
everywhere in turmoil, it may be prudent to consider whether tax
planning is a way in which you can use depressed fair market values
to your advantage.
In Canadian tax planning the most important assumptions
typically relate to the fair market value of taxpayers' assets.
Whether those assets are shares in a private company, a portfolio
of marketable securities, real estate held to produce rental
income, or otherwise, depressed fair market values of those assets
due to current economic conditions may present opportunities to
implement tax planning strategies.
Some strategies to consider include:
- Freeze – this strategy is often used to reduce taxes
payable on death of a principal shareholder and shift future growth
(e.g. in a family business) to future generations.
