Canada Tax

Canada tax questions answered by Experts

Ask an Expert,
Get an Answer ASAP!

CAPITAL GAINS TAX QUESTION Is it correct that if I were to…

Customer Question
CAPITAL GAINS TAX QUESTION Is it...
CAPITAL GAINS TAX QUESTION
Is it correct that if I were to sell 100% shares in my business AFTER the Budget in mid-March 2016, 10% capital gains tax on profits is payable, but if I sell only part of the shares, e.g 75% of the shares in my business, then 28% capital gains tax on profits is payable?
I have a couple of other questions but I have to have the answer to the above, urgently.
Submitted: 2 years ago.Category: Canada Tax
Show More
Show Less
Ask Your Own Canada Tax Question
Answered in 1 hour by:
2/18/2016
Canadian Tax Expert: PDtax, Certified Public Accountant (CPA) replied 2 years ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Canada Tax
Satisfied Customers: 5,127
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified

Hi from just answer. I'm PDtax. I'll assist.

Ask Your Own Canada Tax Question
Canadian Tax Expert: PDtax, Certified Public Accountant (CPA) replied 2 years ago

The capital gains rate can be as much as 23.8% currently, depending on your income in the year of sale. The 10% rate might be applicable to capital gains at a much lower income level.

The change in rate is only proposed by the president. It is not law yet.

Hope that clarifies things for you. Positive feedback is appreciated. I'm PDtax.

Ask Your Own Canada Tax Question
Customer reply replied 2 years ago
You have not answered my question. Please read the question again. You missed the point! I did not ask you what is the rate of CGT now or after the budget.What I asked you is whether after next Budget in March 2016 there is a difference if I sell all, i.e. 100% of the shares in my company or only part, e.g. only 75% of the shares.
In a casual conversation with an accountant who specialises in taxation, he told me that I have to sell 100% of the shares in my company after the next Budget, otherwise I will have to pay 28% CGT instead of 10%.
Canadian Tax Expert: PDtax, Certified Public Accountant (CPA) replied 2 years ago

I was responding to US budget proposals, and I think you are asking about Canadian budget changes to occur at the same time.

I'll opt out, and a Canadian tax expert can assist.

Ask Your Own Canada Tax Question
Canadian Tax Expert: Arthur Rubin, Tax Preparer replied 2 years ago
Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Canada Tax
Satisfied Customers: 1,679
Experience: Tax preparer with 23 years experience, including US/Canada tax returns.
Verified

I'm sorry, but the 10% and 28% in your initial question only appear in US Tax treatment, not in Canadian tax treatment. However, I see nothing in the budget proposal (as of January) which would make any change in the difference between selling your entire business and selling part of your business.

As for the timing, even if there were a difference, the tax change could be retroactive to the start of 2016, rather than only being effective as to the date of passage of the budget (or any other date specified in the budget).

Ask Your Own Canada Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a canadian tax expertLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Arthur Rubin Your Own Question
Arthur Rubin
Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Canada Tax
Satisfied Customers: 1,679
1,679 Satisfied Customers
Experience: Tax preparer with 23 years experience, including US/Canada tax returns.

Arthur Rubin is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Arthur Rubin

Arthur Rubin

Tax Preparer

1,679 satisfied customers

Tax preparer with 23 years experience, including US/Canada tax returns.

Legal Ease

Legal Ease

Lawyer

287 satisfied customers

Lawyer

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,542 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,813 satisfied customers

15years with H & R Block. Divisional leader, Instructor

< Previous | Next >

Related Canada Tax Questions
I currently own a corporation that I use t provide my
Hello, I currently own a corporation that I use t provide my services to the film and television industry. Also, personally, I own my own house and currently wondering if I should sell my home to the … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,693 satisfied customers
I have been working as a sole proprietorship for the last 15
I have been working as a sole proprietorship for the last 15 years. I would like to incorporate my business, and I am I looking to setup OpCo - HoldCo structure for tax deferral purpose. Is there a go… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Does a returning resident (absent decades) only include worldwide
Does a returning resident (absent decades) only include worldwide income in his/her Canadian tax return in the year of return from the date they arrived back in Canada as a resident?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Applies to Canada. Questions relate to a property changing
Applies to Canada. Questions relate to a property changing from personal use to rental use and proper reporting of a disposition in 2015 income tax filing. Scenario: Single family home (Property A) pu… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,813 satisfied customers
I am a Canadian considering being an advisor to a couple of
I am a Canadian considering being an advisor to a couple of privately held US tech companies. In each case, I would be performing advisory services in Canada and receive stock option equity that would… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,693 satisfied customers
I am an American citizen with no residency status in Canada.
I am an American citizen with no residency status in Canada. I bought a condo while I was working in the country for a year, but now need to return to the US and want to sell the condo. Is it true tha… read more
Legal Ease
Legal Ease
Lawyer
Doctoral Degree
287 satisfied customers
In the year 1999 and 2000,I started a company and sold 135
In the year 1999 and 2000,I started a company and sold 135 ,000 dollars in shares. I thought that my accountant put this through as a capital gains deduction but when I checked a couple of months ago,… read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,076 satisfied customers
My question is related to claiming Lifetime Capital
Hello, My question is related to claiming Lifetime Capital Gains Exemption in Canada. I'm considering selling my small business CCPC to a non-resident of Canada (100% of shares to someone from Panama)… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am a canadian citizen and live in canada. my question is
i am a canadian citizen and live in canada. my question is if i buy 100 shares stock A in 2014 at $10, and buy more 100shares stock A in 2015 for $20. In 2016, stock A is worth $15, and I sell 100 sha… read more
Legal Ease
Legal Ease
Lawyer
Doctoral Degree
287 satisfied customers
I want to sale a farm. When does Capital Gains set in or what
I want to sale a farm. When does Capital Gains set in or what would I have to pay? Would I have to pay HST? What about land transfer taxes? How much might they be? My husband and I were joined owners.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,813 satisfied customers
I am looking to ask a question to a tax lawyer.I have a small
I am looking to ask a question to a tax lawyer. I have a small incorporated business in Ontario Canada since 1983, I lease out space within our main building to other businesses, out of 7704 sq ft we … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,813 satisfied customers
I've been filing my taxes as self-employed but then incorporated
I've been filing my taxes as self-employed but then incorporated a company in Mar 2013. How do my personal return change? Self-employed with clients doing financial/business services. Used T2202 when … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If I transfer stocks I own personally to my incorporated business
If I transfer stocks I own personally to my incorporated business (100% owned by me) will any capital gain have to be taken by me or will it be added to the tax base of the corporation and I will pay … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My husband & I own shares in our business 50/50. Upon death
My husband & I own shares in our business 50/50. Upon death of one of us, we have willed the business to the remaining spouse. Upon death of the remaining spouse, we have willed the business (incorpor… read more
Law.Hut
Law.Hut
Lawyer
Law degree (Juris Doctor)
6,458 satisfied customers
Tax or real estate question, province of Quebec. We own
Tax or real estate question, province of Quebec. We own a city home and a piece of land If we will build a chalet on the land we own and move there, how long must it be our domicile before we can sell… read more
Legal Ease
Legal Ease
Lawyer
Doctoral Degree
287 satisfied customers
We have sold our cottage and just need some advice on capital
We have sold our cottage and just need some advice on capital gains. Please correct me if I am wrong but this is how I understand the calculation is made. Purchase price plus improvements gives you ad… read more
Arthur Rubin
Arthur Rubin
Tax Preparer
Doctoral Degree
1,679 satisfied customers
Mother wants to leave her 40% shares in ltd bc company to son
Mother wants to leave her 40% shares in ltd bc company to son and daughter in law. which is best way to minimize taxes? Should she gift the shares to her son and daughter in law (both hold 60% shares … read more
Legal Ease
Legal Ease
Lawyer
Doctoral Degree
287 satisfied customers
if i worked in germany for 4 years as a canadian.(husband was
if i worked in germany for 4 years as a canadian.(husband was in military)now i collect a pension from there.i claim it on my taxes each year,now im getting tax form from there,wanting me to pay doubl… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x