East Bay Business Daily

What is the tax treatment for liquid corporate assets upon the end/retirement of a business?

The business is a CCPC (Canadian-Controlled Private Corporation) and the owner will be ending the business due to retirement. There are some liquid corporate assets that exist within the corporation. Is the only option to cash out all the assets at once and take a huge tax hit, or may the owner keep the corporation running and take out liquid assets each year to cover living expenses (thus not taking as much of a tax hit)? Any links to information would be much appreciated.

Public Comments

1. Have a look at this article on the $750,000 lifetime capital gains tax exemption. This will certainly help you out. http://www.cfib.ca/research/businfo/pdf/min0122.pdf