AFM363 Lecture Notes - Lecture 17: Property Income, Passive Income

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM363
• Professor: Dan Rogozynski

Document Summary

Comments, basic federal (38%, common to all corporations, abatement (10%, no foreign business pe. If ccpc pays a lower rate of tax, shareholders should pay a higher rate of tax. Specified investment business income: passive income with less than five-full time employees, does not create jobs, treated as property income. Subject to art: eligible for refundable tax treatment. Additional refundable tax (art: 10 2/3 % of the lesser of, aii, taxable income - income eligible for the sbd. Aii: net taxable capital gains, property income. Less: property losses, net capital losses under division c, dividends under division c. Lower sbd if there is more than ,000 in aii: aaii = aii + non-connected dividends + net capital loss - active asset taxable capital gains, active taxable capital gain, used in active business income. Refundable part i tax: dividend taxed high up front for ccpcs, can get back when taxable dividend is paid to the shareholder.