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Glossary term
QSBS — Qualified Small Business Share
Shares of a CCPC that qualify for LCGE. 24-month holding + 90%+ active business assets in Canada at sale + 50%+ during entire holding. Pre-exit 'purification' may be needed.
Related terms
TOSI
Tax on Split Income — CRA anti-income-splitting rule (2018). Dividends/income from CCPC to family members tax…
IPP
Defined-benefit pension plan for a single employee (usually owner-manager of CCPC, physician in MPC). Allows…
RSU
Restricted Stock Unit — equity compensation where company promises shares after vesting. FMV at vesting day a…
ESPP
Employee Stock Purchase Plan — payroll-deducted contributions to buy company stock at a discount (typically 1…
Eligible Investor
Investor category for exempt market securities (NI 45-106): (a) net assets $400K+ alone or with spouse, OR (b…
Accredited Investor
Higher exempt-market tier: (a) income $200K solo / $300K with spouse 2 of last 2 years, OR (b) net financial…
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