Hi all, if I have a corp A operating an active business and a corp B that owns a building and rents it to corp A, I would assume the share sale of corp B would qualify for SBC for capital gains exemption purpose? The rental income is the only income corp B earns and corp B doesn’t own any other assets.
It also depends on what the situation has been in Corp A and B over the last 24 months, how long the shares have been owned, and whether the building has mixed use (some used by opco and some used by third parties). I’m also assuming everyone is a Canadian resident and the companies are CCPC’s. At the most basic level, though, yes, the shares of Corp B should qualify as long as all other requirements are met.
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Thank you Kevin!
@dongminkun, I should mention that your question is not really a 129(6) issue. When you’re talking about the capital gains deduction issue, you’re looking at 110.6.