Tax benefit of talent-funding - Candians only please

As a side benefit to participating in a new venture as a talent capitalist, there are tax incentives.

In Canada you can make up to 750k$ (lifetime limit) in capital gains TAX FREE if the following conditions apply:

- You invested in a small business
- Business is based in Canada
- You have kept the shares for 24 months or more
- A bunch of other accounting conditions to which most start-ups comply

In other words if you have 5% of a venture and the company sells for 1M$ 2 years after you got the shares. Your 50K$ is tax free.

Certain conditions apply.

See: TaxTips.ca - Small Business - Capital gains deduction