Information about selling a business including closing accounts, restrictive covenants, inventory valuation, change of ownership. Section 167 of the Excise Tax Act (the Act) contains provisions for two elections that apply to the sale of a business and its assets.I sold my sole proprietorship in 2021 and need to report the proceeds of the sale. However, I understand it's not taxed as regular business income. Learn the key tax implications for three methods of buying or selling a business in Canada. Form T2125 has fields where you can record money you earned from the disposition, or sale, of your business property and assets. The types of deductions that may lead you to pay minimum tax include limitedpartnership losses, resource expenses, and stock option deductions. Selling your business? A Business Purchase Agreement transfers a business entity from its owner to the buyer. In Manitoba, an asset purchase and sale transaction won't be complete without considering these three forms: 1.