QSBC Share Qualification Test Calculator

The Lifetime Capital Gains Exemption isn't automatic. Shares have to clear three separate tests, and excess cash sitting in the company is exactly what fails the first one.

Reading This Tool

How To Use This Calculator

Enter the fair market value of active business assets against total assets, both today and averaged over the past 24 months.

Qualified small business corporation shares need at least 90% active business assets at the moment of sale, at least 50% averaged throughout the prior 24 months, and the shares themselves need to have been held for at least 24 months, generally by the individual or a related person throughout.

Your Inputs

Active Business Assets (Current FMV) $1,800,000

Total Corporate Assets (Current FMV) $2,000,000

Average Active Asset % Over The Prior 24 Months 65%

Months These Shares Have Been Held 30

Assets like excess cash, a large investment portfolio, or a vacant property held for appreciation generally count against the active asset percentage, whether or not they were ever needed for day-to-day operations.

Qualification Status

Active Asset Percentage vs. Required Thresholds

This checks the three core numerical tests only. The full definition also requires the corporation to be a Canadian-controlled private corporation throughout, and involves specific rules for holding companies and related corporations that can affect the calculation.

Failing the 90% test because of excess cash?

See The HoldCo vs. OpCo Architect →