How to Maintain Eligibility for The Small Business Deduction Amid Passive Investment Income
The Small Business Deduction (SBD) allows Canadian-controlled private corporations (CCPCs) to pay a reduced federal tax rate on the first $500,000 of active business income. However, changes to federal tax rules have placed limits on access to this deduction when passive investment income within a corporate group exceeds certain thresholds. Business owners now need to be…
