Last week, the federal government released its 2015 budget. The budget contains a number of proposals to amend the Income Tax Act, and also provides updates regarding previously announced tax measures. One of the proposed changes announced in the budget will be especially relevant to business owners who are considering a future sale of their business.
If you are thinking about selling your business in the near future, it’s a good time to consider the tax-planning strategies that may be available to help minimize the capital gains tax that will be payable on the sale. In a share sale, one of the most common strategies involves structuring the transaction so that the vendor can rely on the $800,000 lifetime capital gains exemption.