A Ltd. and B Ltd. are partners in active partnership carrying on business in Canada. In the current year, the partnership earned $700,000 of active business income. A and B share partnership profits equally. A operates its own business which earned active business income of $400,000 in the current year. B's only income source is the partnership. What is the maximum income that is eligible for the small business deduction on B's tax return

Answer rating: 100% (QA)

The small business deduction is a tax benefit in Canada that allows eligible corporations to apply a lower tax rate to a portion of their active busin... View the full answer