A couple will transfer a co-owned building – that is used 75% in the operation of an active business of a corporation owned by one of them and 25% for rental to third parties – to the corporation on a rollover basis in consideration for shares with a FMV equaling that of the building.
CRA indicated that it would regard the building as being “an asset used principally in an active business carried on by the corporation” following the rollover transaction.