Are transfers of title from an individual to his/her own corporation exempt from paying property transfer tax?
No. There is no exemption under the Act for the transfer of property from an individual to his/her own corporation or to the corporation of a related individual. This type of transfer is a taxable transaction for which tax is payable on the fair market value of the interest transferred as of the date of registration. Example: Property is registered in the name of John. John transfers 50% interest to John Inc. (John’s incorporated corporation). The registration of 50% interest at the Land Title Office is a taxable transaction for which tax is payable on the fair market value as of the date of registration.
Related Questions
- Is the transfer of a family farm from an individual to his/her family farm corporation exempt from paying property transfer tax?
- Are transfers of title between related or associated corporations exempt from paying property transfer tax?
- How are transfers of title to a corporation treated under the Property Transfer Tax Act?
