Ms. Simpson owned 10% of the shares of a small business corporation that went out of business. Six months after it ceased business she sold her shares to an arms length person, Mr. X, for $1. When she went to claim a loss on her investment she did not know how much she could write off. In order to have the loss treated as an ABIL, the company needed to be a small business corporation at the time of sale and at that time it did not have any assets used in an active business. She has not used any of her capital gains exemption before. Can you clarify this situation for her?