Small business limit reduction (Taxation) Flashcards

1
Q

Small business limit reduction (Taxation)

A
  • Starting January 1, 2019, there is a reduction in the small business limit (SBL) when adjusted aggregate investment income (AAII) is great than $50,000.
    o The SBL is reduced by $5.00 for each dollar of AAII over $50,000 in the preceding year.
  • AAII generally includes net taxable capital gains on non-business assets and net income from property, excluding dividends from connected corporations.

Reference: ITA 125

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