Business Of Agriculture: LCGE Will Increase To $800,000 In 2014

From CFIB. After 6 years of aggressive lobbying, the Canadian Federation of Independent Business (CFIB) pleased the 2013 Federal budget will increase the Lifetime Capital Gains Exemption (LCGE) from $750,000 to $800,000 in 2014 and will start indexation to inflation in 2015. The LCGE is a very important tax measure, because many agri-business owners rely on the proceeds from the sale of their business for their retirement income.

With nearly 70% of farmers with a succession plan retiring from their business in the next 10 years, increasing the LCGE threshold and indexing it to inflation has been one of CFIB’s top agri-business lobbying issues. CFIB survey data shows 94% of agri-business owners say indexing the LCGE to inflation would have a positive impact for their business. Yet, the Conservatives had not kept their 2008 election promise to do so.

We’re pleased the Federal government listened and introduced $110 million in tax relief by increasing the LCGE and indexing it to inflation.

Next Steps: While this is a big win for agri-businesses, CFIB will continue pushing for the limit to be increased to $1 million

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