Passive Business Income
To define passive business income, determine net income by using allowable deductions and apply appropriate AISH exemptions.
Table of Contents
AISH encourages applicants and clients to take actions to enhance their financial independence. AISH recognizes the mutual obligation of cohabiting partners to support each other. Income of the applicant, client, and their cohabiting partner are considered in determining eligibility and level of benefits.
Passive Business Income includes:
· Capital gains;
· Mineral/oil royalties;
· Non-pension annuities;
· Partnership (limited or non-active partnership income);
· Rental; and
AISH applies allowable Canada Revenue Agency (CRA) deductions to partnership and rental income when determining net income.
CRA Allowable Business Expenses
AISH applies the following exemptions to passive business income.
The single exemption applies to a single person, or to each of two cohabiting partners if they are both AISH eligible and have no dependent children.
· The first $200 is fully exempt.
· Any amount above $200 is 25% exempt.
The family exemption applies to an applicant and client with a cohabiting partner, a single parent with one or more dependent child, or an applicant and client with a cohabiting partner with one or more dependent children. The applicant, client and their cohabiting partner’s passive business income and the cohabiting partner’s pension income are added together before the family exemption is applied.
· The first $775 is fully exempt.
· Any amount above $775 is 25% exempt.
In a situation where both partners are AISH eligible and have dependent children, one receives the family exemption and the other receives the single exemption.
Depending on how much the income changes, clients may report their income and their cohabiting partner’s income on a monthly, quarterly or annual basis.
Income Reporting Policy
Assured Income for the Severely Handicapped Act, section 3(3)(c) and 5(3)(b)
Assured Income for the Severely Handicapped General Regulation, sections 3(2); Schedule 1, section 1, Table 2