Life time capital gains exemption - LCGE

Each Canadian get a one in a lifetime opportunity to shelter an amount of capital gains against capital gains tax.

$892,218

So as a company owner you can take advantage of this if you do a share sale of part or all of your company. But it does not work if a buyer makes an asset purchase of your business rather than a share purchase.

Properly qualifying for the LCGE includes qualified small business corporation shares 

Small business corporation shares qualify under this exemption when:

1. The shares have been owned by you or a person or partnership related to you. More than 50% of the fair market value (FMV) of the assets of the corporation were used in active business, carried on primary in Canada

2)  At the time of the disposition of the shares “all or substantially all” (at least 90%) of the assets of the corporation were used to carry on active business.