Crystallization of the LCGE

The deliberate triggering of a capital gain on paper — without an actual sale to a third party — in order to use the Lifetime Capital Gains Exemption before a potential increase in the asset's value or a change in the law that could reduce the available amount. It is typically achieved by valuing the qualifying shares and electing (often under a subsection 85(1) rollover) to a deemed disposition at fair market value, then sheltering the gain with the exemption. This resets the cost base of the shares to current value, so less gain is taxable on an eventual sale.