Definitions for capital gains deduction

Canadian-controlled private corporation

This is a private corporation that is a Canadian corporation other than any of the following:

  1. a corporation controlled, directly or indirectly in any way, by one or more non-resident persons, by one or more public corporations (other than a prescribed venture capital corporation), by one or more corporations described in paragraph c), or by any combination of the above
  2. a corporation that would be controlled by one person if that one person owned all the shares of capital stock of any corporation that are owned by any non-resident person, by any public corporation (other than a prescribed venture capital corporation), or by a corporation described in paragraph c)
  3. a corporation, a class of the shares of capital stock of which is listed on a designated stock exchange

Qualified farm or fishing property

This is certain property you or your spouse or common-law partner owns. It is also certain property owned by a family-farm or fishing partnership in which you or your spouse or common-law partner holds an interest.

Qualified farm or fishing property (QFFP) includes the following:

For more information on what is considered to be qualified farm or fishing property, see the following guides:

Qualified small business corporation shares

A share of a corporation will be considered to be a qualified small business corporation share if all the following conditions are met:

Generally, when a corporation has issued shares after June 13, 1988, either to you, to a partnership of which you are a member, or to a person related to you, a special situation exists. The CRA considers that, immediately before the shares were issued, an unrelated person owned them. As a result, to meet the holding-period requirement, the shares cannot have been owned by any person other than you, a partnership of which you are a member, or a person related to you for a 24-month period that begins after the shares were issued and that ends when you sold them. However, this rule does not apply to shares issued in any of the following situations:

Small business corporation

This is a Canadian-controlled private corporation in which all or most (90% or more) of the fair market value of its assets:

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