A settlor of an alter ego trust can sell property to the trust for a purchase equal to the fair market value of the property, receive cash in satisfaction of that purchase price and still be considered to have transferred the property at cost if all of the other conditions in subsection 73(1) of the Income Tax Act (Canada) are met.
STEP Round Table 2022, question 12, summarized in Tax Topics no 2657 (February 7, 2023)
