• Conditions you must meet

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    To apply the small business 50% active asset reduction, you need to satisfy only the basic conditions. There are no further requirements.

    Example: Small business 50% active asset reduction

    Lana qualifies for the small business 50% reduction because she meets the basic conditions. Therefore, she can reduce her capital gain by a further 50%, as follows:

    $7,000 – (50% x $7,000) = $3,500

    Lana may be able to reduce her capital gain further using the small business retirement exemption or the small business rollover.

    End of example
      Last modified: 29 May 2015QC 44192