Can I just transfer my business equipment into a new corporation?
Moving Business Assets Into a Corporation. Understand the Canadian tax rules, records to gather and practical next steps before preparing your return.
Request a quote →Arsen Accounting Services · Prepared October 29, 2026
Corporate filing and ownership: 10 T2 questions · Browse the 100-article collection
The direct answer
A transfer can have tax consequences and needs an agreed value and documentation. A joint tax election may allow qualifying property to transfer at an elected amount when the conditions are met; it is not automatic. Consider income tax, ownership and any sales-tax implications before moving assets or recording an arbitrary balance.
List each asset and its history
Prepare an asset schedule showing original cost, relevant tax balances, current value and how the corporation acquired it. Include any debt or consideration associated with the transfer. A computer, vehicle, inventory item and customer-related asset may need different treatment. The preparer needs item-level facts rather than a single opening entry labelled “owner contribution.”
Do not assume a rollover happened automatically
A tax-deferred transfer may be available in some circumstances, but it can require conditions, elections and coordinated documentation. Ask for a review before finalizing the transaction where possible. If the transfer already occurred, provide the actual dates and agreements promptly. Do not backdate paperwork or choose a value solely because it produces the desired tax result.
What to gather before the review
- Asset costs, tax balances and valuation support
- Transfer agreements and consideration details
- Corporate opening entries and relevant election documents
Is every transfer to my own corporation tax-free?
No. Common ownership does not automatically remove tax consequences. The transfer method, values and availability of any election must be reviewed for the specific assets and circumstances.
Your next step
List each asset’s original cost, tax balance, current value and related debt for a scoped transition review.
Related reading
Official sources
Bringing personal assets into your business · Income Tax Act
Sources checked for this collection on October 28–29, 2026. Annual forms may refer to a specific tax year. Use the rules and limits for the year being filed. General information; eligibility, elections and deadlines depend on the facts. No deduction or tax saving is guaranteed.
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