Capital Gains Tax Planning
Navigate the complex landscape of Canadian capital gains. With recent changes to inclusion rates, proactive tax planning is more critical than ever to protect your wealth when selling assets, businesses, or real estate.
Protecting Your Wealth from Excessive Taxation
Capital gains tax in Canada has undergone significant changes, particularly with the adjustment to inclusion rates for corporations, trusts, and high-net-worth individuals. Whether you are selling a rental property, liquidating a stock portfolio, or exiting your business, understanding your tax exposure is the first step in mitigating it.
At Teixeira Accounting, we don't just calculate what you owe. We actively structure your transactions to utilize available exemptions, deferral strategies, and corporate structures to minimize the immediate tax impact.
Core Capital Gains Strategies
- Lifetime Capital Gains Exemption (LCGE)Structuring the sale of Qualified Small Business Corporation (QSBC) shares to utilize the $1.25M tax-free exemption.
- Capital Gains ReservesSpreading the tax liability over up to 5 years by structuring the sale with deferred payments or vendor take-back mortgages.
- Estate Freezes & Section 85 RolloversTransferring assets to a corporation on a tax-deferred basis or freezing the current value to pass future growth to the next generation.
- Capital Dividend Account (CDA)Extracting the tax-free portion of corporate capital gains to shareholders without triggering additional personal tax.
Capital Gains Tax Estimator (2025 Rules)
This tool is for general information only and does not replace professional tax or accounting advice.
*Estimates based on CRA inclusion rate changes (50% on first $250k, 66.67% above). Actual tax liability varies by province, alternative minimum tax (AMT), and available exemptions (e.g., LCGE).
Key Trigger Events
Capital gains planning should happen before the transaction occurs. If you are anticipating any of the following events, you need strategic advisory now.
Selling a Business
Exiting your company requires purification of assets to qualify for the LCGE, minimizing tax on the sale of shares versus assets.
Real Estate Dispositions
Selling rental properties, commercial real estate, or secondary homes triggers substantial gains. We help structure the timing and utilize principal residence exemptions where applicable.
Corporate Reorganizations
Moving assets between related companies or introducing a holding company can trigger deemed dispositions if not properly executed under Section 85.
Frequently Asked Questions
Common questions about capital gains tax in Canada.
Why Choose Teixeira Accounting?
At Teixeira Accounting Firm Inc., we don't just record history; we write your financial future. Most accounting firms are reactive—they wait for you to bring them problems. We are proactive architects of your wealth and business growth.
Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.
The Teixeira Advantage
Proactive Tax Strategy
We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.
Bulletproof Compliance
Our rigorous quality control ensures your filings are accurate, minimizing audit risk.
Dedicated Advisory
You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.