The budget also announced the Canadian entrepreneurs' incentive, which will “reduce the inclusion rate to 33.3 per cent on a lifetime maximum of $2 million in eligible capital gains.” The budget says:
Entrepreneurs with eligible capital gains of up to $6.25 million will be better off under these changes. In practice, these numbers will likely be higher to reflect the inflation adjustment for the lifetime capital gains exemption and the ability to spread capital gains over multiple years.
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