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Flag Canada Revenue
Agency		 Agence du revenu
du Canada		 Protected B when completed
 
Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation
 
• This form is used by a taxpayer and a taxable Canadian corporation to jointly elect under subsection 85(1) where
the taxpayer has disposed of eligible property under subsection 85(1.1) to the corporation and the taxpayer
receives as consideration shares of capital stock of the corporation.		 Do not use this area
   
• In order to file this election, you must have a valid CRA account number. For information on how to obtain one, go
to canada.ca.		  
   
• Unless otherwise indicated, all legislative references are to the federal Income Tax Act.  
   
• To file this form electronically, please go to canada.ca/cra-special-elections-and-returns.
Or mail one copy of the election and related documents (if any), completed by the transferor as follows:		  
   
–  to the tax centre of the transferor  
   
–  on or before the earliest date on which any party to the election has to file an income tax return for the tax year in
which the transaction occurred (due date). This due date must consider any election under subsection 25(1)
or 99(2), and		  
–  separately from any other return
   
• When many transferors elect to transfer the same property (co-ownership) or many members of the same partnership elect to transfer their partnership
interests, the elections will be processed together and should be filed:
–  to the tax centre of the transferee
–  on or before the due date, and
–  by a designated transferor to file all of the completed forms for each transferor, together with a list of all of the electing transferors. This list must contain the
name, address and social insurance number, trust account number or business number of each transferor
• Find the address of the transferor and transferee's tax centre at canada.ca/tax-centres.
 
Amended election  010 Yes
 
 
Part 1 – Identification
  
 
 If the transferor is an individual, is the transferor or their spouse self-employed for the year of the election? . . . . . . . . . . . . 025 Yes
 
 Is the transferor a non-resident of Canada? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 004 Yes No
 
  If yes, enter their taxpayer identification number (TIN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 020  
 
002  Taxpayer's name (transferor) 001  Social insurance, business or trust account
     number
 
 Address  City
 
 Province or State  Postal or ZIP code  Country
 
 Tax year of the taxpayer 011   Year Month Day 012   Year Month Day
     Start:  End:
019  Name of contact person 024  Name of firm 022  Telephone number 023  Extension
 
 
  Co-owner legal name Social insurance number
  013 014
     
1.
2.
3.
4.
 
015  Corporation's name (transferee) 016  Business number
 
 Address  City  Province  Postal code
 
 Tax year of the corporation 017   Year Month Day 018   Year Month Day
     Start:  End:
 
T2057 E (22) (Ce formulaire est disponible en français.) Page 1 of 7 Canada Logo
Protected B when completed
 
Part 2 – Penalty for late-filed and amended elections
  
 
  An election that is filed after its due date will be subject to a late-filing penalty. Form T2057 can be filed within 3 years after its due date if an estimate of the
penalty is paid at the time of filing. Form T2057 can also be amended or filed after the 3-year period at the minister's discretion, but a written explanation of
the reason the election is amended or late-filed must be attached for consideration by the minister and an estimate of the applicable penalty must be paid at
the time of filing.
  Calculation of late-filing penalty:
 
  Total fair market values (FMV) of the disposed properties from Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
 
  Total agreed amounts of the disposed properties from Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
 
  Subtotal (total FMV minus total agreed amount)  2A
     
  Amount 2A  x ¼ x 1% x Number of months *  = 2B
     
  $100 x Number of months *  = 2C
     
  Amount 2C cannot exceed $8,000 
  Late-filing penalty (amount 2B or amount 2C, whichever is less) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320  
     
  Amount enclosed  400  
     
  If paying by cheque or money order, make payable to the Receiver General. Write "T2057", the name of the taxpayer (transferor), the social insurance,
business, or trust account number and tax year-end on the back of your cheque or money order. **
 
  * Number of months is the sum of each month or each part of a month in the period from the filing due date to the actual date filed.
 
  ** Daily compound interest at the prescribed rate applies to unpaid amounts, including late-filing penalties.
 
 
Part 3 – Information required
  
 
  On the attached Schedule A, list, describe, and state the fair market value (FMV) of the transferred properties. The description and FMV of the consideration
received must be shown opposite of the related property transferred. In the case of depreciable property, the Minister can determine the order in which such
properties are disposed of unless you have designated the order of disposition of each depreciable property before the filing due date for this election. It may
be necessary for you to prepare the following material to complete the form: the calculation of the adjusted cost base of all transferred properties, a summary
of the method of evaluating the FMV of each property transferred; schedules supporting this election; a designation concerning the order of disposition of
depreciable property; and documentation relating to the responses to the questions below. If there is not enough space on the form, complete extra
schedules giving similar details. This material does not need to be filed with the election, but, must be kept in case we ask to see it at a later date.
 
1. Is there a written agreement relating to this transfer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Yes No N/A
 
2. Is there a valuation report for the transferred assets? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Yes No N/A
 
  (A valuation report is an independent assessment of the fair market value of the transferred property)
3. Does a price adjustment clause apply to any of the properties? (See Income Tax Folio S4-F3-C1 for details) . . . 202 Yes No N/A
 
4. Do any persons other than the taxpayer own or control directly or indirectly any shares of any class of the
  transferee? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Yes No N/A
 
5. Does a non-arm's length transfer exist between two or more corporations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Yes No N/A
 
  If yes to question 5, have all or substantially all (90% or more) of all the properties of the corporation(s) been
  transferred to the transferee corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Yes No N/A
 
6. Where shares of a corporation are being transferred, does the transferee own more than 10% of the capital
  stock of the corporation after the transfer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Yes No N/A
 
7. If the transferor is a non-resident of Canada, are any of the properties transferred taxable
  Canadian properties? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Yes No N/A
 
 Where shares of the capital stock of a private corporation are included in the property disposed of, provide the following:
 
  Corporation's name Business number Total paid-up capital
(under the federal
Income Tax Act)
  216 217 218
       
1.
2.
3.
4.
5.
 
T2057 E (22)     Page 2 of 7  
Protected B when completed
 
Notes
  
• The rules for section 85 elections are complex. Essential information is contained in Information Circular IC76-19, Interpretation Bulletins IT-291 and IT-378
and Income Tax Folio S4-F3-C1.
• Complete all the information areas and answer all questions. If this form is incomplete, we may consider the election invalid and a late-filing penalty may be
applied to future submissions.
• Taxable Canadian property is defined under subsection 248(1).
 
 
Part 4 – Description of shares received
  
 
  Number of
shares transferor
received
 Class of
shares:
Common		 Class of shares
other than Common		 Redemption value
per share		 Total paid-up capital
(under the federal
Income Tax Act)		 Voting Non-Voting Are the shares
redeemable at the
holder's option?
  250 251 252 253 254 255 256 257
                 
1. Yes Yes Yes Yes No
2. Yes Yes Yes Yes No
3. Yes Yes Yes Yes No
4. Yes Yes Yes Yes No
5. Yes Yes Yes Yes No
 
 
Part 5 – Election and certification
  
  The taxpayer and the corporation jointly elect under subsection 85(1) in respect of the property specified, and certify that the information given in this election
and in any attached documents is true, correct and complete to the best of their knowledge.
 
  Transferor
 
  960 961    
  Print name of transferor, authorized officer, or authorized person   Position or office  
 
  962 963   Date  
  Signature of transferor, authorized officer, or authorized person   Year Month Day  
 
  Transferee
 
  970 971    
  Print name of authorized officer or authorized person of transferee   Position or office  
 
  972 973   Date  
  Signature of authorized officer or authorized person of transferee   Year Month Day  
 
 
 
Privacy notice
  
  Personal information (including the SIN) is collected to administer or enforce the federal Income Tax Act and related programs and activities including
administering tax, benefits, audit, compliance, and collection. The information collected may be used or disclosed for the purposes of other federal acts that
provide for the imposition and collection of a tax or duty. It may also be disclosed to other federal, provincial, territorial, or foreign government institutions to
the extent authorized by law. Failure to provide this information may result in paying interest or penalties, or in other actions. Under the Privacy Act,
individuals have a right of protection, access to and correction of their personal information, or to file a complaint with the Privacy Commissioner of Canada
regarding the handling of their personal information. Refer to Personal Information Bank CRA PPU 005, PPU 015 and PPU 047 on Information about
Programs and Information Holdings at canada.ca/cra-information-about-programs.
 
 
T2057 E (22) Page 3 of 7
 
Protected B when completed
Schedule A
 
 
Information on the property disposed of and consideration received
  
    Year Month Day  
  Date of sale or transfer of all properties listed on Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500    
  For properties sold or transferred on different dates, use a separate Form T2057.  
 Capital property (other than shares and depreciable property)
  Brief legal description
of the disposed
property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 513 minus
line 512) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 516 plus
line 518)
  510 511 512 513 514 515 516 517 518 519
                     
1.
2.
3.
 Capital property (shares only)
  Number and class
of shares		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 523 minus
line 522) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 526 plus
line 528)
  520 521 522 523 524 525 526 527 528 529
                     
1.
2.
3.
 Depreciable property
  Description and
prescribed class
of the disposed
property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1, 3		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 533 minus
line 532) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 536 plus
line 538)
  530 531 532 533 534 535 536 537 538 539
                     
1.
2.
3.
 
T2057 E (22) Page 4 of 7
 
Protected B when completed
 
Information on the property disposed of and consideration received (continued)
  
 Inventory excluding real property
  Description
(kind of disposed
property)		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 543 minus
line 542) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 546 plus
line 548)
  540 541 542 543 544 545 546 547 548 549
                     
1.
2.
3.
 Resource property
  Brief legal description
of disposed property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 553 minus
line 552) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 556 plus
line 558)
  550 551 552 553 554 555 556 557 558 559
      nil              
1.
2.
3.
 Security or debt obligation property
  Description of disposed
property		 Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 563 minus
line 562) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 566 plus
line 568)
  560 561 562 563 564 565 566 567 568 569
                     
1.
2.
3.
 
T2057 E (22) Page 5 of 7
 
Protected B when completed
 
Information on the property disposed of and consideration received (continued)
  
 Specified debt obligation (for financial institutions only)
  Description Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 573 minus
line 572) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 576 plus
line 578)
  570 571 572 573 574 575 576 577 578 579
                     
1.
2.
3.
 Capital property (real property owned by a non-resident person)
  Description Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount 2		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 583 minus
line 582) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 586 plus
line 588)
  580 581 582 583 584 585 586 587 588 589
                     
1.
2.
3.
 Agrilnvest fund no. 2 5
  Description Elected amount
limits 1

Fair market value
of the disposed
property		 Elected amount
limits 1

Cost amount		 Agreed amount
(cannot be "0")		 Amount to be
reported
(line 593 minus
line 592) 4		 Description of
consideration
received
(non-share)		 FMV
of consideration
received
(non-share)		 Number and class
of share
consideration
received		 FMV
of share
consideration
received		 Total
FMV
of the
consideration
received
(line 596 plus
line 598)
  590 591 592 593 594 595 596 597 598 599
                     
1.
2.
3.
 
Totals
                   
T2057 E (22) Page 6 of 7
 
Protected B when completed
 
Endnotes
  
  1 For more information on limits, read Interpretation Bulletin IT-291, Transfer of Property to a Corporation Under Subsection 85(1).
  2 Adjusted cost base (subject to adjustment under section 53).
  3 The lesser of the undepreciated capital cost of all property of the class and the cost of the property.
  4 If the amount is greater than 0, it must be reported either as a capital gain or as income, whichever applies. Also, in the case of depreciable property, a portion of the amount may have to be reported as a
capital gain while another portion of the amount may have to be reported as income.
 
  5 Contributions made in a tax year ending after 2007, and amounts earned on those contributions, are only eligible if that property is owned by an individual.
 
T2057 E (22) Page 7 of 7