Once your corporation earns more than $50,000 of investment income in a year, it quietly starts losing its $500,000 small-business limit — which raises the tax rate on your practiceincome, not your portfolio. (The grind uses one year's investment income to set the nextyear's limit.) This tool shows where your cliff is, the annual extra corporate tax the grind causes, and how redirecting passive assets into a corporate-owned permanent policy restores the deduction.
This tool is for illustration purposes only and does not constitute financial or tax advice. It models a single Ontario CCPC for the 2026 tax year with the federal-only passive-income grind, no associated corporations, and no large-corporation taxable-capital grind. The life-insurance scenario is a directional planning illustration, not a policy projection — suitability of any insurance product must be assessed individually by a licensed insurance and investment advisor. Consult a qualified professional before making decisions.