CRA Penalizes You $334K For Having Cash
How excess cash, investments, and intercompany loans inside your corporation can quietly disqualify you from the Lifetime Capital Gains Exemption – costing business owners hundreds of thousands in lost tax savings.
Show Notes
You might be losing $334,000 in tax savings right now.
If you're a Canadian business owner with excess cash, investments, or intercompany loans inside your operating company, you could be blocked from claiming your $1.25 million Lifetime Capital Gains Exemption (LCGE).
In This Solo, We Reveal:
• The 3 tests your company must pass to qualify for the LCGE
• Why most business owners fail the 90% active asset test
• How excess cash, loans to holding companies, and investments can disqualify you
• A real example of a business owner who lost $334,000 in tax savings
• How to "purify" your corporation properly
• Why a Section 55 butterfly reorganization must be done correctly
This applies whether you're planning to sell your business or simply want to protect your family from a massive tax bill at death.
📥 Resources from this episode
Does Your Company Qualify for the $1.25M LCGE?
Three-test breakdown of the Lifetime Capital Gains Exemption — QSBC status, the 24-month holding period, and the 50% / 90% active-business asset tests. A $334K+ tax-savings tool that most business owners assume they qualify for but don't.
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