[Verse 1] Started with a corporate maze of holdings Mixed-use assets tangled in the web Capital gains exemption slipping through our fingers Time to clean the slate and reorganize instead Purification calls for strategic splitting Active business from the passive side Seven-fifty thousand waits for qualified shares But first we need to meet the tests inside [Chorus] Purify, organize, maximize the prize Ninety percent test and fifty percent rule Timing is the key that unlocks LCGE Clean those shares and play it like a jewel Purify, organize, crystallize your gains Two years prior, check the income stream Active business income needs to dominate Living the qualifying corporation dream [Verse 2] Small business corporation status first to verify Canadian-controlled throughout the time Taxable capital under fifteen million Keep those numbers clean and stay in line Asset test requires examination Ninety percent for active business use Look back twenty-four months for the income test Fifty percent threshold you cannot lose [Chorus] Purify, organize, maximize the prize Ninety percent test and fifty percent rule Timing is the key that unlocks LCGE Clean those shares and play it like a jewel Purify, organize, crystallize your gains Two years prior, check the income stream Active business income needs to dominate Living the qualifying corporation dream [Bridge] Butterfly transactions split the corporation Safe income distributions clear the deck Term preferred shares and related party transfers Every move requires a thorough check Attribution rules and deemed dispositions Family trust elections in the mix Professional advice essential for the process Get it wrong and watch your exemption slip [Verse 3] Holding period minimum of two years Continuous ownership through the term Related persons aggregated holdings Make sure all the percentages confirm Professional practice corporations qualify Investment income cannot overwhelm Calculate the cumulative totals Keep active business at the helm [Chorus] Purify, organize, maximize the prize Ninety percent test and fifty percent rule Timing is the key that unlocks LCGE Clean those shares and play it like a jewel Purify, organize, crystallize your gains Two years prior, check the income stream Active business income needs to dominate Living the qualifying corporation dream [Outro] Seven-fifty thousand lifetime shelter Plan ahead and execute with care Purification pays the patient planner Qualifying shares beyond compare
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