Oct 04, 2019
A lot has been written about the lifetime capital gains exemption (“CGE”), now up to $866,912 and indexed annually, available to shelter gains from the sale of qualifying private company (“QSBC”) shares. Further, many have written about how prior deductions for allowable business investment losses (“ABILs”) and cumulative investment losses (“CNIL”) reduce the exemption that is actually available. Advisors are also generally aware that alternative minimum tax (“AMT”) can arise if an individual’s regular income tax in the year is low. If you think addressing these issues covers all the bases for determine how much CGE is really available and how much to use, think again.