Terry owns 100% of IBM Ltd and 100% of both EFG Inc. and MBA Inc. respectively hence they are all associated. Terry also owns 60% of Apple Ltd and 10% XYZ Ltd. which the first one is associated and the second is not associated companies. Each of the five corporations has at least $300,000 of active business income earned in Canada. What is the maximum combined corporate income on which the five corporations can claim the small business deduction?

Answer rating: 100% (QA)

In Canada the Small Business Deduction SBD is available to eligible Canadiancontrolled private corporations CCPCs on their active business income subj... View the full answer