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Qualified Small Business Corporation Shares

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Thanks Gabriel.

 

Then the "Date of acquisition" I enter is the initial date?  And "Proceeds of disposition" is the total received for selling the shares?

 

If I want to use my lifetime cumulative capital gains deduction of $750,000 for a qualified small business corporation, where do I enter the this amount?  I would like to maximize the deduction.  "Capital gains deferral for small business investment" perhaps?

 

As you may know, one of the rules for using this capital gains deduction is that, in the 24 months preceding the sale of shares, the shares cannot be owned by anyone other than myself.  So, in my case, with a disposition date of May 1, 2012, share purchases made before May 1, 2010 qualify for this deduction, but purchases after this date do not qualify.

 

How is this information entered/reflected if there is only a single sale transaction entered?  Perhaps in the "Limit to the capital gains exemption claimed" field?  Or do I have one transaction for before and another for after May 1, 2010?

 

Does the "Limit to the capital gains exemption claimed" field have anything to do with this?

 

Thanks again for your help.

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1. Yes, the date is the initial date.

 

2. Almost, the "Proceeds of disposition" is the amount received minus the paid commission.

 

3. The calculations are made automatically. Simply fill the "Qualified small business corporation shares (QSBCS)" form in "Capital Gains & ABIL".

 

4. Yes there are two transactions. The shares that do not qualify have to be reported as regular stock.

 

5. The "Limit to the capital gains exemption claimed" field is used when you want to claim less than the exemption to which you are entitled.

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