Brian Haner owns 100% of Shred Guitar Technology Ltd (SGT). Valerie Benz owns 100% of Tennessee Tours
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Question:
Brian Haner owns 100% of Shred Guitar Technology Ltd (SGT). Valerie Benz owns 100% of Tennessee Tours Inc (TT). Brian and Valerie each own 50% of Musical Gear Transport Ltd (MGT). Brian is married to Valerie's sister, Michelle.
Assume that the three companies combined have less than $10 million of taxable capital, that each has no passive investment income, and that each has at least $500,000 of active business income earned in Canada. What is the maximum combined corporate income on which the three corporations can claim the small business deduction?
A. | NIL | |
B. | $500,000 | |
C. | $1,500,000 | |
D. | $1,000,000 | |
E. | None of the above |
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
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