Active Business Income

Active Business Income

What is an Active Business?
  • A business carried on by a corporation other than Specified Investment Business (SIB) or a Personal Service Business (PSB)
    • Please see out notes on SIB and PSB
Active Business Income Defined
  • Business Income earned as a result of carrying on active business
    • this excludes property income (i.e. rent, royalty, interest, dividends) and capital gains from the definition of “active business income”
Implications
  • The small business deduction is available only on Active Business Income earned in Canada

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