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Rental Income as Active Business Income: How to Use ITA 129(6) for Tax Savings
Did you know that rental income earned by a corporation in Canada is usually taxed as passive income—at rates over 50% in some provinces? But under Subsection 129(6) of the Income Tax Act, there’s a powerful exception: if the rental income comes from an associated corporation using the property in its active business, it may qualify for the ...
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