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Sunday, March 20, 2011

Capital gains tax lifetime exemption

A large part of business succession planning is about tax. A business owner selling his business (whether by outright sale or by estate freeze) wants to make sure that he or she has set up a plan that minimizes the tax that will have to be paid.

For sellers of small businesses, a useful thing to keep in mind is the capital gains exemption that is available. A Canadian business owner can over a lifetime shelter up to $750,000 realized from the sale of the business.  I believe this particular exemption is best explained by an accountant, so I'm linking to a site by Janet Nixon, CGA, which has a good discussion of the exemption. Click here to read it.

2 comments:

  1. Capital Gains Tax (CGT) is chargeable and due in respect of gains made from sell, transfer and otherwise disposal of assets.
    Capital Gains Tax can be very harsh and punishing if not planned for. That said, careful expert planning for CGT can result in significant saving of the tax and result in more of the disposal proceeds in your pocket and as less as possible of the capital gains tax.

    ReplyDelete
  2. Capital Gains Tax (CGT) is chargeable upon individuals in respect of gains made from sell, transfer and otherwise disposal of assets.
    Capital Gains Tax can be very punitive if not planned for. Careful planning for Capital Gains Tax can result in significant saving of the tax

    ReplyDelete

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