The 2018 Federal Budget introduced new rules that can reduce the amount of the small business deduction available for active income earned in a corporation. The small business deduction is reduced by $5 for every $1 of passive income a corporation earns over $50,000 and is completely eliminated if the corporation earns over $150,000.
If you have business owner clients, share this Passive Investment Income Calculator with them to reveal how their corporation may be affected.
Questions? Contact your local PPI Collaboration Centre.