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Deductions · 8 min

Every deduction Canadian small businesses miss

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Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.

DeductlyCA
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DEDUCTIONAll of Canada

Lifetime Capital Gains Exemption (LCGE)

Last verified: June 2026

Sell shares of a qualified small business corporation tax-free, up to a lifetime limit of $1.25 million as of 2026. Critical for founders planning to exit. Requires structuring well before the sale.

See if I qualifyOfficial page
Estimated value
Up to $1.25 million in tax-free gains (2026, indexed to inflation)
Approval likelihood
High
Ready to apply score
85/100
Documents needed
4

Eligibility

  • Business types:incorporated
  • Industries:All industries
  • Provinces:All of Canada

What you'll need

  • Share sale documentation
  • Asset tests at time of sale (50% Canadian active)
  • Holding period proof (24+ months)
  • T657 form

How to apply

  1. 1Purify the corporation 24 months before sale
  2. 2Maintain CCPC status
  3. 3Confirm qualified shares status
  4. 4File T657 with personal return on disposition
Deadline:On disposition: claim with personal T1

Is your business a fit for Lifetime Capital Gains Exemption (LCGE)?

Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.

Check my eligibility

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A monthly digest

New programs, in your inbox.

We are in beta. Drop your email and we will write when the first digest is ready. Monthly cadence, easy unsubscribe.

Deductly CA

Every Canadian grant, tax credit, and deduction your business qualifies for. In one ranked list.

Start the assessment
Product
  • Eligibility quiz
  • All programs
  • Watch (live changes)
  • The funding journey
  • When to apply
  • Stackability map
  • Document checklist
  • Calculators
  • Tracker
  • Learn
  • Pricing
Resources
  • For accountants
  • Public API
  • RSS feed
  • What's new
  • Roadmap
  • Press
  • vs ChatGPT
  • vs Benefits Finder
By province
  • Ontario
  • British Columbia
  • Alberta
  • Quebec
  • Manitoba
  • Saskatchewan
By industry
  • Technology & Software
  • Manufacturing
  • Retail & E-commerce
  • Food & Beverage
  • Professional Services
  • Creative & Media
For
Women entrepreneursNewcomersIndigenous businessYouth foundersBlack entrepreneursFirst-hire employers
Recent guides
Deductions · 8 min

Every deduction Canadian small businesses miss

Grants · 10 min

8 grants every Canadian founder should know about

Deductions · 7 min

The Small Business Deduction, fully explained

© 2026 DeductlyPrivacyTermsAboutFrançaisContact
All systems operational

Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.