For the fiscal year ending December 31, 2019, a CCPC has Division B Income of $475,000, made up of active business income of $360,000 and $115,000 of Adjusted Aggregate Investment Income. For 2018, the company’s Adjusted Aggregate Investment Income was $84,000. Its only deduction in the determination of 2019 Division C Income is a non-capital loss carry forward of $75,000. Because of its association with another company, the CCPC’s share of the annual business limit is $375,000. The associated company has no Adjusted Aggregate Investment Income for 2018 and 2019. 

Required: 

For the independent cases below, determine the CCPC’s small business deduction for the year ending December 31, 2019, assuming that the combined Taxable Capital Employed In Canada of Limited and its associated company was:

Independent Case 1 $11,000,000 for 2019 and $14,500,000 for 2018.

Independent Case 2 $13,500,000 for 2019 and $10,800,000 for 2018.

Answer rating: 100% (QA)

For the year ending December 31 2020 Limiteds SBD 243750 Abbreviations Small business deduction SBD ... View the full answer