Selling Assets vs Selling Shares
Whether it's better to sell assets or sell shares depends on who's buying and who's selling.
Purchasers
- prefer selling assets
- can deduct the Capital Cost Allowance (CCA) or depreciation on buildings, machinery and equipment
- when selling shares, the seller gets the deductions for the CCA
Sellers
- prefer selling shares
- get capital gains treatment (especially valuable if the Capital Gains Exemption remains
- sale of assets can result in recapture of CCA
An asset sale is much more complex, which means extra costs for legal documents and tax planning
page revision: 2, last edited: 01 Apr 2007 22:41