T2057: Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation
Form T2057 is the joint election a taxpayer and a taxable Canadian corporation file to transfer property into the corporation on a tax-deferred basis under subsection 85(1).
This is the genuine CRA PDF, unmodified. Source: CRA official page.
What is T2057?
T2057, Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation, lets a taxpayer roll eligible property into a corporation and jointly elect an agreed amount as the proceeds of disposition. Choosing that amount within the limits set by subsection 85(1) can defer the gain that would otherwise arise on the transfer, which is a common step in incorporating a business or reorganising ownership.
This is a dynamic (XFA) PDF designed for Adobe Acrobat Reader and will not fill in a web browser or a basic PDF viewer. Download it and open it in the free Adobe Acrobat Reader. The election is made jointly, so both the taxpayer and the corporation must agree to the amounts on the form.
Who files T2057?
- Taxpayers transferring eligible property into a taxable Canadian corporation
- Owners incorporating a proprietorship or reorganising a business
- A corporation jointly electing with the taxpayer under subsection 85(1)
- Advisers preparing a section 85 rollover on behalf of the parties
How to fill out T2057
- Download the T2057 and open it in the free Adobe Acrobat Reader; it will not fill in a browser.
- Enter the taxpayer and corporation identification details.
- Describe each property being transferred and its cost and fair market value.
- Choose the elected amount within the subsection 85(1) limits for each property.
- Both parties sign the election and file it with the CRA by the required deadline.
Get T2057
This is a dynamic PDF from CRA: it only fills in correctly in Adobe Acrobat Reader, so there is no in-browser fill here. Download the genuine T2057 below and open it in the free Adobe Acrobat Reader to complete and save it.
Download the official T2057 PDFFrequently asked questions
What does a section 85 election do?
It lets you transfer property into a Canadian corporation and elect an agreed amount as the proceeds, which can defer the gain you would otherwise report. The elected amount must fall within the limits set by subsection 85(1).
When is the T2057 due?
The election generally must be filed by the earliest date any party has to file a return for the year of the transfer. Late-filing is possible with a penalty, so check the current rules and deadline at canada.ca.