Passive Income Grind Zone Tracker

A growing investment portfolio inside your corporation doesn't just earn passive income, past a point, it quietly takes your small business deduction with it.

Reading This Tool

How To Use This Calculator

Enter your corporation's current passive investment portfolio and how fast it's growing.

For every dollar of adjusted aggregate investment income above $50,000 in a year, your $500,000 small business deduction limit shrinks by five dollars, reaching zero entirely at $150,000. This projects forward, year by year, to show exactly when your own portfolio crosses into that zone.

Your Inputs

Current Corporate Investment Portfolio $800,000

Expected Annual Investment Return 5.0%

Additional Retained Earnings Invested Each Year $60,000

Projection Length 10 yrs

Adjusted aggregate investment income (AAII) is approximated here as portfolio value multiplied by return, a simplification of the real formula, which also nets out certain items like taxable capital gains on active-business property. Treat this as a directional projection, not a precise AAII calculation for filing.

Small Business Deduction Impact

Year The $50,000 Grind Begins

Never in this window

Year Fully Ground To Zero

Never in this window

Available SBD Limit, Final Year

$500,000

Available Small Business Deduction Limit Over Time

Ignores the separate, cancelled 2024 proposal to raise the general capital gains inclusion rate, which never took effect, current capital gains remain included at 50% for AAII purposes. Also ignores portfolio drawdowns, tax paid on investment income reducing reinvestable capital, and any active business capital gains that are specifically excluded from AAII.

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