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  • 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: 30 Mar 2021QC 44192