Question
In 2020, Mr. Sargent, a Canadian resident, sold shares of his operating company that he inherited from his father in 2019. His father had started
In 2020, Mr. Sargent, a Canadian resident, sold shares of his operating company that he inherited from his father in 2019. His father had started the business and incorporated in 2002. All of the capital assets of the company are business assets used in its Kitchener-Waterloo operations. The company also has $200,000 of excess cash invested in money market accounts. $60,000 of the cash was used periodically during the past 12 months for business operations on top of the $30,000 the company generally maintains in its operating bank account. Mr. Sargent would like to be able to use his capital gains exemption against his $1.2 million gain on the share sale. Please comment.
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