Co-owners who are considering options for a shareholders' agreement may want to consider the tax implications of their choices.
For example, they may want to consider what will happen to a shareholder's shares on his or her death. In addition, if a company's shares qualify for the lifetime capital gains exemption ($866,912* in 2019), co-owners may want to structure their shareholders' agreement so the party selling the shares can claim the exemption.
Read an August 2019 report prepared by the KPMG member firm in Canada that focuses on the tax consequences of shareholders' agreements.
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