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.
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.