--Apple-Mail-DA26844E-0300-4D59-8995-F822FF7660FB Content-Type: text/plain; charset=utf-8 Content-Transfer-Encoding: quoted-printable Hi Kathryn, Can you translate and give us your thoughts? Thanks. Tim Thomas Soins =C3=A0 Domicile / Home Care Assistance 514 907 5065 Begin forwarded message: > From: Howard Nemeroff > Date: January 20, 2021 at 5:12:24 PM EST > To: Timothy Thomas > Cc: Tim Thomas > Subject: RE: sale of business >=20 > =EF=BB=BF > Tim . > =20 > Based on what you emailed to me it appears that each of you and your wife w= ould be eligible for the lifetime capital gain exemption ( maximum of $875,0= 00 approximately subject to possible erosion through previously claimed ABIL= s or the CNIL account ) as regards the capital gain each of you will respect= ively realize on this sale if the corporation has met the 50/50 test over th= e last two years and meets the 90/10 test as of the date of sale .( What the= respective capital gains will be is determined by the difference by which = sale proceeds exceeds adjusted cost base(ACB)). What are these tests?. The= 50 /50 test is met if at no time during the last 24 months prior to the dat= e of closing was there more than 50% in assets of the corporation ,as measur= ed by fair market value , in non-business assets (e.g. cash in the bank or m= arketable securities in excess of working capital requirements).This same te= st has to be satisfied to the extent of 10% as of the date of closing .If th= ere is some doubt as to whether the 90/10 test will be met the corporation s= hould divest itself prior to closing of any redundant assets it has by eithe= r using those assets to pay off liabilities or to declare a dividend to the p= resent shareholders. > =20 > Because your son Timothy has held his shares for two years( I. e. since J= an1,2019) he will also be eligible for the LCGE as regards his capital gain= . =20 > =20 > One question that I have is how is it that the FMV of the corporation incr= eased by so much since the valuation done April 30,2018 ? The tax department= s may ask the same question. > =20 > In terms of fees you have run up so far 1 hour at $500 .=20 > =20 > HOWARD NEMEROFF > PHILLIPS FRIEDMAN KOTLER S.E.N.C.R.L./LLP > 1010 de la Gaucheti=C3=A8re West > Suite 600 > Montreal, Quebec > H3B 2N2 > Phone 514-878-3371 local 228 > Fax 514-878-4676 > Email hnemeroff@pfklaw.com > Note de confidentialit=C3=A9: Ce courriel (et/ou tout document rattach=C3=A9= ) est confidentiel et destin=C3=A9 strictement =C3=A0 l=E2=80=99usage de la p= ersonne ou l=E2=80=99entit=C3=A9 nomm=C3=A9e pr=C3=A9c=C3=A9demment. Toute p= ersonne prenant connaissance du pr=C3=A9sent courriel sans en =C3=AAtre le d= estinataire ou son employ=C3=A9 est avis=C3=A9 qu'il est strictement interdi= t de distribuer ou reproduire l'information y contenue. Si ce courriel vous a= =C3=A9t=C3=A9 envoy=C3=A9 par erreur, veuillez nous en aviser imm=C3=A9diat= ement et le d=C3=A9truire avec les documents qui y sont rattach=C3=A9s. > Co