The Sneaky Tax That Surprises Business Owners at Exit: Understanding AMT

14/11/2025 3 min

Listen "The Sneaky Tax That Surprises Business Owners at Exit: Understanding AMT"

Episode Synopsis

Selling your business should be a celebration, but there’s a hidden tax that catches countless Canadian entrepreneurs off guard. In this episode, Jason breaks down the Alternative Minimum Tax (AMT), a little-known parallel tax system that quietly runs alongside your regular tax calculation… and often comes back to bite owners the year after a sale.Most business owners know about the Lifetime Capital Gains Exemption and the $1.25M tax-free advantage. But far fewer understand how AMT can create a surprise tax bill, and how smart planning can help you recover it over time.Jason simplifies this complex topic and walks you through:Why AMT exists and how it applies when you sell your companyWhy using the LCGE can trigger an unexpected tax billThe seven-year window to recover AMT, and how to actually get it backWhy taxable income in retirement matters (and why RRSPs aren’t the bad guy)The types of income that help you reclaim AMT… and the ones that don’tIf you’re a business owner planning an exit - now or years from now - this episode will help you avoid a major (and unnecessary) tax surprise.Listen now to protect yourself, plan smarter, and keep more of your hard-earned wealth.

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