How are you taxed when you sell a small business?

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How do you report the income from the sale of a small business? What are the tax implications? And what do you do if the CRA won’t tell you what to do? 

I recently sold my company last year for $160,000 and purchased it for $90,000 in 1997. Can you please help me with the tax on this? I have called CRA many times and no one knows this simple process.- Peter

Sorry you have been having trouble getting an answer, Peter. I think one reason is the process may seem simple, but it is not necessarily straightforward. Selling a business has tax and legal implications. The tax implications can include GST/HST sales tax, payroll tax and other taxes. 

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Original Article Source Credits: MoneySense, https://www.moneysense.ca

Article Written By: JASON HEATH

Original Article Posted on: APRIL 11, 2022

Link to Original Article: https://www.moneysense.ca/columns/ask-a-planner/taxes-when-you-sell-a-small-business-in-canada