A Canadian Controlled Private Corporation which is not associated with any other corporation provided you the following
Question:
A Canadian Controlled Private Corporation which is not associated with any other corporation provided you the following information. ABI $320,000 Investment Income Canadian 17,000 Charitable donations 9,000 Net Capital Loss deducted 2,000 Non Capital Loss deducted 10,000 Taxable income 316,000 Taxable capital employed 11.9 million
Required: Calculate the Small Business deduction and General reduction
Small business deduction 17.5% of lesser of:
(a) Income from an active business .........................
(b) Taxable income .....................................................
(c) Business limit (before reduction) ......................
General reduction13% of
Net Taxable income .............................................................
Less: income eligible for SBD ..................................
. AII ........................................................................
Net ..................................................................................
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett