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Passive Income in a Corporation

Richard Weber on September 18, 2017 in Tax

What is it?

Passive income effectively refers to income earned on funds or investments that are not active business assets. For example, portfolio investments, stocks, bonds, rental properties, real estate investments.

Proposed Changes

The government is concerned that investing through a corporation creates an opportunity for much more rapid accumulation of wealth than would be possible if the same investment activities were instead conducted personally.