I have a client that can treat property (rental) income as active business income using ITA subsection 129(6)(b)(i). Basically, the rental income is derived from an associated corporation engaged in (an) active business.
The T2 defaults to a Sch 7 calculation which essentially deducts this "rental income" for the purposes of calculating income that qualifies for the Small Business deduction. Is there some other way to classify this income as "active" without overriding or eliminating Sch 7?
