The 2007 budget proposes increasing the existing lifetime capital gains exemption for qualified small business corporation shares, qualified farm property and qualified fishing property from $500,000 to $750,000, effective for dispositions on or after March 19, 2007.
Please note that the capital gain may be tax free, however, the seller may have to pay alternative minimum tax on the gain. For further information on the lifetime capital gains exemption and alternative minimum tax, contact your local Collins Barrow office with any questions you may have.