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How to File a Section 85 Election Form 2026

Master the tax-deferred transfer of assets to a corporation. Gain the practical skills to prepare and file the Section 85 election with accuracy and confidence.

Created byJason Fleming
BeginnerUpdated Feb 3, 2026

What You'll Learn

  • check_circleIdentify eligible property for rollovers.
  • check_circleCalculate elected amounts to defer tax.
  • check_circleComplete forms T2057 and T2058 accurately.
  • check_circleAllocate FMV and boot correctly.
  • check_circleAvoid penalties by filing on time.

About This Course

This webinar explains how to file a Section 85 election, Forms T2057 and T2058. We also cover how to avoid tax when transferring assets to a company and how to incorporate a business on a tax-free rollover basis. There are lots of examples to help explain these important tax topics.

Features:

  • How individuals, corporations, trusts, and partnerships can transfer assets tax-free.
  • Administrative details such as due dates, penalties, and amending election forms.
  • The tax consequences of not transacting at fair market value (FMV).
  • Comprehensive income tax consequences to both the seller and the buyer of using Section 85, with many examples.
  • Section 84.1 anti-avoidance rules that can stop your tax plan from working.
  • How to incorporate your business on a tax-free rollover basis.
  • How to crystallize your capital gains exemption.

By the end of this course, you will possess the technical knowledge required to file Section 85 elections with confidence, ensuring compliance with the Canada Revenue Agency while optimizing tax outcomes for the transferor and the transferee corporation.

Course Content

2 activities • 2 videos • duration: 2h 38m

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How to File a Section 85 Election Form 20262 videos • 2.6 hours
  • videocamHow to File a Section 85 Election Form 2026 P1
    Duration 68:47
  • videocamHow to File a Section 85 Election Form 2026 P2
    Duration 89:49
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Final Assessment1 quiz

Your Instructor

Jason Fleming

CPA, CA, M.Acc

menu_book20 courses
star5,253 reviews

Jason Fleming is a Chartered Professional Accountant (CPA), Chartered Accountant (CA) with a master’s degree in accounting. Jason is an associate professor, teaching stream, at York University, previously he was a tax manager at a Big-4 accounting firm in Toronto. Jason completed the CICA’s In-Depth tax course, ranked 8th in Ontario on the UFE (the CA professional exam) and taught tax week at the ICAO's Summer School. Jason is the author of CFE Tax, 9th edition, CFE Case Writing, 3rd edition and various tax articles.

Credit Information

Is this course eligible for my CPD requirements as a Canadian CPA?

Provincial regulators of CPAs in Canada do not require that independent providers of CPD be approved to offer courses. Instead, individual CPAs are responsible for assessing whether a CPD activity meets their requirements, and may take activities from any source provided those requirements are met.

Every course offered on LearnFormula is delivered by a qualified subject matter expert or learning organization, and advances learning objectives that are relevant to the responsibilities or professional competencies of Canadian CPAs. All activities on LearnFormula are quantifiable in terms of hours, and are also verifiable, in that users receive documented evidence of their attendance via a certificate of completion after finishing a course (and this certificate is stored by LearnFormula indefinitely). Nearly 100,000 Canadian CPAs successfully satisfy their CPD requirements via LearnFormula on an annual basis.

What Students Are Saying

5.0 out of 5
Student's Choice
30 reviews
  • GM
    Grace M.
    starstarstarstarstar

    very useful, thanks

  • MK
    Maurice K.
    starstarstarstarstar

    Very detailed and consistent content. Did really appreciate and it allowed to master the section 85 filing in very simple way.

  • XY
    Xiaoqin Y.
    starstarstarstarstar

    it was a good match with my learning purpose, thanks

  • AC
    Alexander C.
    starstarstarstarstar

    Very informative. I liked the use of the examples prepared on the T2057 form.

Frequently Asked Questions

We are a registered provider with 300+ associations and regulatory bodies worldwide. We operate across 27 global markets including Canada, the US, Australia, and the UK. Every course page clearly displays its specific accreditations. Upon completion, you receive a professional certificate that can be validated online. Our certificates include all necessary accreditation details, credit hours, and completion dates, and are formatted specifically to meet the submission requirements of most global regulatory bodies.

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