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  • Conditions you must meet



    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