How to minimize taxes in the event of the sale of the business?

Following the corporate reorganization, it will often be chosen that a family trust will hold the participating shares of the corporation operating the business. In the event of the sale of shares of the corporation by the trust to a third party, there will be a capital gains tax on the increase in value gained by the sold shares. If the corporation meets certain conditions, the capital gain will be exempt from tax up to the exemption to which is entitled each beneficiary of the trust holding the shares in question. You can thus multiply the exemption by using the spouse's and children's one. Indeed, any individual residing in Canada may, under certain conditions, benefit from a deduction in the calculation of his income, which is applicable to the capital gain realized on the disposition (sale or death) of qualified small business shares. This lifetime capital gains exemption is limited to an amount of $800,000, indexed for the 2015 tax year.