Mr. X, a Canadian resident has owned all the shares of X Ltd. for 5 years. X Ltd. is a CCPC with assets worth $3 million. It has $2,000,000 of assets used in an active business carried on in Canada- the remaining $1,000,000 of assets is vacant land. X Ltd. plans to sell some vacant land and pay out the after-tax proceeds as a dividend to purify the company. 

Compute the amount of vacant land that must be sold in order to purify X Ltd. for the purposes of the QSBC capital gains exemption.

Answer rating: 100% (QA)

To qualify for the Qualified Small Business Corporation QSBC capital gains exemption in Canada certa... View the full answer