The Family Office Insider

The Sneaky Tax That Surprises Business Owners at Exit: Understanding AMT


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Selling your business should be a celebration, but there’s a hidden tax that catches countless Canadian entrepreneurs off guard. In this episode, Jason breaks down the Alternative Minimum Tax (AMT), a little-known parallel tax system that quietly runs alongside your regular tax calculation… and often comes back to bite owners the year after a sale.

Most business owners know about the Lifetime Capital Gains Exemption and the $1.25M tax-free advantage. But far fewer understand how AMT can create a surprise tax bill, and how smart planning can help you recover it over time.

Jason simplifies this complex topic and walks you through:

  • Why AMT exists and how it applies when you sell your company
  • Why using the LCGE can trigger an unexpected tax bill
  • The seven-year window to recover AMT, and how to actually get it back
  • Why taxable income in retirement matters (and why RRSPs aren’t the bad guy)
  • The types of income that help you reclaim AMT… and the ones that don’t

If you’re a business owner planning an exit - now or years from now - this episode will help you avoid a major (and unnecessary) tax surprise.

Listen now to protect yourself, plan smarter, and keep more of your hard-earned wealth.

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The Family Office InsiderBy Jason Nagel