$10M capital gains exemption for worker co-op sales in Canada

While much of the attention on Budget 2024 focused on Employee Ownership Trusts (“EOT”), a lesser-known measure may offer similar tax advantages through a different employee ownership model: the worker cooperative corporation (“WCC”).

With draft legislation released in August 2024, business owners now have an opportunity to access up to $10 million in capital gains exemptions when selling to a WCC, but only if strict conditions are met. This article explains how WCCs function, how they compare to EOTs, and the requirements for qualification.

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