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