Representatives from the RV Dealers Association of Canada and the Canadian Camping and RV Council are on Parliament Hill in Ottawa today to urge the federal government for a taxation exemption on transferring businesses to children.
“Currently, if a parent wishes to transfer ownership of their RV dealership to their child, the family will carry a significant tax penalty,” said RVDA Chairman George Goodrick. “This creates significant financial hardship when passing on a successful family business, as this extra cost can have catastrophic effect on the overall health of the business.”
Given that the lifetime capital gains exemption for the sale of small businesses is currently $800,000 in addition to overall capital, the sale of an RV dealership significantly exceeds the current exemption. RVDA of Canada recommends the government introduce a tax-free transfer of a small business from a parent to a child. This will assist in the succession planning of the company ensuring that an already successful dealership continues to be profitable.
The CCRVC recommends that the federal government work with the campground industry to develop loan assistance programs that work. This assistance will ensure that 4,200 campgrounds across the country can continue to operate successful businesses and contribute to the health of their local economies.