Weekly Tax Tips
Utilize your capital gains exemption for qualified small business corporation shares and qualified farm/fishing property
Date: 3 Sep 2010
A $750,000 ($500,000 prior to March 19, 2007) capital gains exemption is available for capital gains from qualified small business shares, qualified farm property and for dispositions on or after May 2, 2006, qualified fishing assets. If you own such assets with accrued gains, you can trigger the gain by means of an actual sale to a third party, or by transferring the asset to your spouse (if you elect to transact at fair market value) or to a corporation you control. Before doing so, you should consult with your BDO advisor to ensure that any gain will qualify for the exemption. Note that if you previously triggered a $500,000 gain, it may make sense to enter into a similar arrangement to use up the additional $250,000 exemption amount that became available on March 19, 2007.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 3 Sep 2010.
More Tax Tips Here!
