Insights · Analysis in preparation
Selling Your Business: The QSBC Tests You Must Pass 24 Months Early
This analysis is being written to the standard the rest of this site holds to — dated, cited to primary sources, and revised when the law or CRA practice changes. It is not yet published.
What this analysis will cover
The $1.25 million lifetime capital gains exemption is available only for shares that pass the qualified small business corporation tests — including holding and asset tests that reach back 24 months and cannot be fixed at the deal table. This piece explains each test in plain terms, and why purification work starts two years before a sale, not two weeks.
In the meantime
The mandate this analysis supports
The question this piece addresses is already live in practice. The advisory page below sets out how it is handled today; a private consultation is the direct route for a specific matter.
This article reflects tax law and CRA administrative practice as of its publication date. It is general information, not tax, accounting, or legal advice, and reading it does not create a professional-client relationship. Figures, deadlines, and administrative positions change — obtain advice on your own facts before acting.