Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
| Minister(2)/D.M. Office |
Y.S. 9226008 |
| Central Records |
| Author / Section Chief |
| District Office? |
| Research File |
| Taxpayer's File |
| Return to Specialty Rulings, Room 303, Met. |
| |
October 11, 1989 |
24(1)
I am replying to you, letter of March 1, 1989, addressed to Mr. Terry Clifford, M.P. for London-Middlesex, which was subsequently referred to the Honourable Don Mazankowski, Minister of Agriculture. As Mr. Mazankowski indicated in his letter to you of August 8, 1989, he has asked me to reply to your concerns regarding the eligibility of 24(1) for the small business deduction.
The small business deduction is calculated on the income of a corporation for the year from an active business carried on in Canada. However, the definition of income from an active business does not include income derived from the rental of property. This deduction and the related issue of "active business" is described in Interpretation Bulletin IT-73R4, a copy of which is enclosed.
From the information available, 24(1) appears to be earning property income and therefore it would not be eligible for the small business deduction.
I trust this information will be of assistance to you.
Yours sincerely,
Otto Jelinek
c.c: The Honourable Don Mazankowski, Deputy Prime Minister, President of the Queen's Privy Council for Canada and Minister of Agriculture
G. Thornley/sb(957-2101)/ys9226008Sept. 29, 1989
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1989
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1989
Email this Content