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Hello Allan,
Hope you are doing well. My question is:
If I pay myself non-eligible dividend in a form of land, let say the property FMV is 10k (company bought it for 7k)it is just a less half acre of land, is it taxable on my personal income on the date I declared it or on the date I record it or on the date I transferred the property to my name? What if I changed my mind, and I want to reinvest the property back to the company before I transferred the property to my personal ownership and already declared it as non-eligible dividend and filed T5. Thank you very much.
You will pay personal income tax on the taxable amount of the non-eligible dividend received. The actual amount (before gross-up) will be equal to the fair market value on the date the land is received by you (i.e. when the title is transferred from the company to you). Once the title has been transferred, you cannot unwind this transaction.