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Glossary ->
Information for Business Owners -> Specified Investment Business

Specified Investment Business

Income Tax Act s. 125(7)

A specified investment business is a corporation whose principal purpose is to derive income (interest, rent, dividends and royalties) from property, unless the business employs more than 5 full time employees.  Income from property would include rental or leasing income from land or buildings, but would exclude income from renting or leasing moveable property such as machinery and equipment.

A specified investment business is not eligible for the small business deduction, and the income is taxed in the corporation in the same way that investment income is taxed.

Related Articles

bulletCorporate Income Tax Rates
bulletCorporate Taxation of Investment Income
bulletRental Income - Business Income or Property Income?

Revised: July 27, 2016

 

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