In the 2016 federal budget, the Liberals announced a new approach to how intangible assets are treated for tax purposes. These new rules are effective January 1st, 2017. Intangible assets are eligible capital property, which includes goodwill, patents, trademarks, customer lists, and franchise rates. The tax rules will change for these assets, treating them the same way as other depreciable assets. However, this has implications, especially when it relates to the sale of eligible property. Currently, gains from the sale of intangible assets can be taxed as business income with an inclusion rate of 50 percent. With the combined federal and Ontario corporate income tax rate of 26.5 percent, the effective tax rate drops to 13.25 percent. But under the new rules, any gain on the sale of intangibles will be treated as property income, and tax will be payable at just over 25 percent. Therefore, if you have plans to sell intangible assets in the near future, including goodwill on an asset sale of your business, it is advantageous from a tax perspective to trigger the gain this calendar year. It is recommended to speak to your tax advisor, as it may be beneficial to trigger an internal gain on your intangible assets before December 31st, 2016.