Specified Investment Business or SIB is defined in Canadian Income Tax Act subsection 125(7) and ties into and provides an exclusion from the definition of Active Business Income. In other words specified investment business income earned by a corporation is not considered to be active business income and is not eligible for the small business deduction (SBD) tax credit. Specified Investment Business is income from property such as interest, rent ( including leasing income from land or buildings), dividends or royalties. There is an exclusion from the definition of SIB if the corporation employs more than 5 full time employees so property income earned by a corporation with more than 5 full time employees will meet the active business income.
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