As interest rates show signs of stabilizing, many business owners who were previously in a holding pattern may be ready to reconsider a sale.Recent cuts to interest rates by both the Bank of Canada and the U.S. Federal Reserve Board have created a more accommodative environment than economies have seen in recent years. With further cuts possible, Canadian small and medium-sized businesses may benefit..
Once owners are confident in the optimization of their business, they should also consider tax incentives that could reduce their tax bills when they sell. The three most prominent programs are: 2. The new Canadian Entrepreneurs’ Incentive, which can reduce another $2-million of capital gains for qualifying transactions in addition to the LCGE.of up to $10-million could be exempt from capital gains if the business is being sold to its employees and meets regulatory requirements.