Who can get huge capital gains exemption?

For 2022, this exemption was available on Qualified Small Business Corporation shares on Capital Gains of up to about $914,000 but this shall be on a lot more gains for 2023.

The exemption is over your lifetime; you can claim any part of it at any time in your life when you sell the shares; consequently, it is called Lifetime Capital Gains exemption (LCGE).

The exemption for Qualified Farm and Fishing Property was available on about $87,000 more than on Business in 2022.

This exemption has been subject to several conditions.

For example, the Small Business, the Farm and the Fishing Property had to be qualified.

And one qualification is that you must have owned the Business, Farm or Property for at least 2 years.

One condition was that the sale was to a third party.

This condition is very likely to be removed soon and you would be able to sell the shares to your children or grandchildren.

This would then facilitate inter-generational transfer of Businesses and Farm and Fishing Properties by paying much less taxes because of this huge exemption.

Use this information only under the guidance of a licensed and highly professional tax accountant.

By: H&T Accounting Service, a CPA firm.

This publication should be considered general information and not professional advice.