CNIL not reduced by QSBC gain

Tax Topics
1

I have a client with a QSBC net gain of $25K but a CNIL of $37K. Effectively his QSBC gain will be taxable but his CNIL is not reduced by this event as it would be for regular capital gains. Is there any recourse for this? I understand that the CNIL will make the gain taxable but I don’t think it’s fair that this will not reduce his CNIL going forward.

2

since when does fairness have anything to do with CRA regulations?

3

Here’s a suggestion:
https://www.gtaaccountant.com/capital-gains-deduction-and-the-cnil-balance/

1 Like