LCGE Flashcards
1
Q
What is a QSBC?
A
- carry 50% or more business in Canada
- 24 months before sale, must have had 50% or more active income
- At the time of sale, 90% would have to be active income
2
Q
What does purifying business mean?
A
Moving passive assets to other entity or owner to get to 90% active level at sale
3
Q
What is qualified farming property?
A
1,000,000 not indexed
- shares in family farm corporation
- interest in family farm partnership
- real property used in farming
- intangible farming assets
Farming property must have been used 24 months prior
4
Q
Who benefits from LCGE?
A
Individual
5
Q
How can beneficiaries of a trust get their lifetime capital gains?
A
Have money come out prior to 21st year
6
Q
What is CNIL?
A
Accumulation of deductions (ie interest on loan) that reduces LCGE
-unless a dividend is oaid
