Avoid this costly tax planning mistake!

For incorporated business owners, passive investment income earned inside a holding company can have important tax consequences. Since the 2019 tax changes, corporations that earn more than $50,000 of annual passive investment income begin to lose access to the Small Business Deduction, which can result in active business income being taxed at a higher corporate rate. Understanding how these rules work is essential for business owners who are accumulating wealth inside their corporations. While building investment assets within a holding company can be an effective long-term strategy, failing to monitor passive income levels may lead to unintended tax costs. This video explains how the passive income rules operate, how they affect the tax rate on your operating company, and several planning strategies that may help reduce passive investment income and preserve access to the lower small business tax rate. With thoughtful planning, business owners can better balance corporate investing with long-term tax efficiency. Book a complementary Intro call with us! https://outlook.office.com/book/AGESWealthManagement1@wellington-altus.ca/s/_vxRVhsXGUOcEjQZhoDolw2?ismsaljsauthenabled Follow Us for More Financial Insights! 🌐 Website: https://advisor.wellington-altus.ca/ageswealthmanagement/ 🐦 X (Twitter): https://x.com/ageswealth 📸 Instagram: https://www.instagram.com/ageswealth/ 🎵 TikTok: https://www.tiktok.com/@ageswealth?lang=en The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recomme