Canada Investment Corporation

Discussion in 'Professional Trading' started by eqt403, Feb 21, 2010.

  1. eqt403


    Need input or experience from others:

    All the money I am using to invest is corporate money, and not personal, so this is a question about corporate tax:

    I have setup a new corporation to do only my investments, the capital I am using to invest is loaned to me from a different corporation, which I am a minority shareholder.

    In Canada, corporate investment income is taxed at approx 46%, but Active/Primary Business income is taxed at between 14-19%.

    My question is, because this new corporation's active/primary business income is investments/trading will the tax rate be the 14-19% range. And in addition, can this corp be considered a Small Canadian business with NET income under $500,000 and qualify for the 14% (in Alberta) corp tax rate?

    Also what are others experience with corporations setup primarily for trading/investments.

  2. Highterm


    Wasting your time asking this here. You should consult a tax specialist in Canada
  3. Investment income should be as income. Tax at normal rate in corporation.
  4. If its a trading business, then trading income is business income, taxed at the lower rate. Your business should also qualify as an eligible canadian small business.

    Get a good accountant, it's worth the money. I pay decent money to one of the big name firms and have had the same guy for several years and it's saved me lots. I'm incorporated and set up a family trust.