CRA Trap of Excess Corporate Cash

Two business owners sold nearly identical companies for $3 million each.One paid $800,000 in tax.The other paid close to zero.In this video, I break down the five tax mistakes that created an $800K difference — and a real deal that collapsed entirely because nobody planned ahead.In this episode, we cover:• How treating tax as an afterthought can cost you hundreds of thousands• Why failing to qualify for the $1.25M Lifetime Capital Gains Exemption can cost $334,000• How one simple purification step could have preserved the exemption• How estate freezes and family trusts can multiply exemptions across family members• Why waiting until a buyer is at the table limits your options• The real reason some deals die during due diligence• Why your accountant (even a good one) may not be enough for a business sale💡 The biggest tax savings in a business sale happen before the deal — not after it closes.If you're planning an exit, model your numbers, clean up your company, and build the right advisory team before going to market.🔗 Resources & GuidesFor episode breakdowns, tax checklists, blogs, and additional resources, visit:🌐 theadvisorstable.com📞 Looking for Trusted Tax Advice?Connect with Sankalp (Sunny) Jaggi, at Cedar Consulting Group📧 Email: [email protected]🌐 Website: cedargroup.ca🔔 Subscribe for practical breakdowns on business sales, tax planning, succession, and exit strategies.👇 Comment below: Are you planning to sell your business in the next few years? Have you modeled your after-tax proceeds yet?LEGAL DISCLAIMER: This video is based on a real case, but names and some details have been changed to protect client confidentiality. This content is for educational purposes only and does not constitute legal or tax advice. Always consult with a qualified tax professional before making financial decisions.#TheAdvisorsTable #BusinessSale #LifetimeCapitalGainsExemption #TaxPlanning #BusinessOwners #SuccessionPlanning #EstateFreeze #CanadianTax00:00 – $3M Sale, $800K Tax Difference00:31 – The $3M Deal: What David Missed01:13 – Mistake #1: Treating Tax as an Afterthought02:17 – Mistake #2: Losing the $1.25M Exemption ($334K Cost)04:18 – Multiplying the Exemption with Family (Estate Freeze)06:02 – $800K Completely Avoidable06:11 – The Deal That Completely Died07:28 – Mistake #4: When Tax Kills the Deal07:40 – Mistake #5: Wrong People Leading the Deal09:29 – What To Do Before Selling (1–3 Years Out)10:31 – Build the Right Deal Team10:46 – Final Takeaways & Next Steps