The lifetime capital gains exemption can reduce tax on gains from certain business shares. Check what you would need to qualify before counting on it in a sale.
A first check for qualified small business corporation (QSBC) shares. It does not confirm that you qualify, value your assets, review changes to your business structure or calculate your deduction.
No. The sale-date test and the relevant prior 24-month tests are different. Share-ownership history, CCPC status, the historical asset mix, and the personal claim must also be checked. Read CRA's QSBC share conditions.
CRA lists $1,275,000 of qualifying gains for 2026, corresponding to a $637,500 deduction at a one-half inclusion rate. Prior claims and individual restrictions can reduce the available amount, and alternative minimum tax may still arise. See CRA's 2026 indexed limits.
Explore why each owner’s eligibility matters separately.