A corporation purchased a limited partner unit of Limited Partnership. Should income from LP be reported as aggregate investment income, or active business income if Partnership carries out active business? In what circumstances should we fill out S7 part 4 “Specified Partnership Income”?
Thanks!
A thorough examination, evaluation, and analysis of all the relevant aspects of the contract and other documentation would precede the recording of such investment or interest by the corporation, and both would precede an evaluation of the tax consequences of whatever it is.
There are potentially numerous variations of what corporations could get up to.
Too hazardous to guess on limited information…
Will a T5013 be received in the fullness of time, etc…
Thanks for reply! I got T5013 with amounts in box 117 rental income and box220 CCA for rental. As per contract, corp partner is limited partner without getting involved in management/operation. The partnership is doing property management. I tend to report this as aggregate investment income(rental income) instead of active business income in T2. Any comments will be appreciated.
Thanks!