📊 LCGE Calculator
2026 LCGE Limits:
• Qualified Small Business Corporation (QSBC) Shares: $1,250,000
• Qualified Farm/Fishing Property: $1,250,000
These limits are indexed annually for inflation
📊 Your LCGE Summary
2026 LCGE Lifetime Limit:
$0
Previous LCGE Used:
$0
CNIL Reduction:
$0
Available LCGE Room:
$0
Capital Gain (Taxable Portion):
$0
LCGE Applied to This Sale:
$0
Remaining Taxable Gain:
$0
Estimated Tax Savings:
$0
Remaining LCGE Room:
$0
❓ Frequently Asked Questions
What is the Lifetime Capital Gains Exemption (LCGE)?
The LCGE is a Canadian tax provision that allows eligible individuals to shelter capital gains on the sale of qualified small business corporation (QSBC) shares and qualified farm or fishing property from taxation. For 2026, the exemption limit is $1,250,000. Mississauga business owners selling their corporations can save significant tax by using this exemption with guidance from a
qualified CPA in the GTA.
Who qualifies for the LCGE in Ontario?
To claim the LCGE, you must be a Canadian resident selling shares of a qualified small business corporation (QSBC) or qualified farm/fishing property. The shares must have been held for at least 24 months, and at least 90% of the corporation's assets must have been used actively in business in Canada. Toronto and Mississauga entrepreneurs often work with
corporate tax planning CPAs to ensure their shares qualify before a sale.
What is CNIL and how does it affect my LCGE?
Cumulative Net Investment Loss (CNIL) is the excess of investment expenses (like interest on loans to buy investments) over investment income. CNIL reduces your available LCGE dollar-for-dollar. Ontario business owners with significant passive income or investment portfolios should consult a
CPA in Mississauga to calculate their CNIL accurately before claiming the exemption.
Can I use the LCGE multiple times?
Yes, you can use the LCGE multiple times over your lifetime, as long as you don't exceed the cumulative $1,250,000 limit (indexed annually). For example, if you used $500,000 of the exemption on a prior business sale, you have $750,000 remaining. Many GTA entrepreneurs selling multiple businesses over time rely on
strategic CPA advice to maximize the benefit across transactions.
How much tax can the LCGE save me in Ontario?
Using the full $1,250,000 LCGE can save approximately $312,500 to $343,750 in combined federal and Ontario taxes (assuming a 50% inclusion rate and top marginal rates). The exact savings depend on your income, province, and other deductions. Mississauga and Toronto business owners benefit from working with an
ex-KPMG CPA to structure their exit for maximum tax efficiency.