The $1.25M Exit: Maximizing Your Life’s Work

Selling your business is the ultimate payout, and the Lifetime Capital Gains Exemption (LCGE) is your best friend. For 2026, the limit has been indexed to $1,250,000. This means the first $1.25M in profit from the sale of qualified small business corporation shares can be virtually tax-free.

However, qualifying is a marathon. Your business must pass the "asset test" for 24 months preceding the sale, meaning at least 50% of your assets must be used in active business. You can read the detailed CRA capital gains deduction rules to understand the nuances.

Our Exit Strategy: We work with founders 2-3 years before an exit to "purify" the corporation. Early planning is the difference between a $0 tax bill and a six-figure one. We'll help you meet the 2026 inclusion rate thresholds and secure your retirement wealth today.