question archive BDL is wholly owned by Barbara, a resident of Canada, who also owns all of the shares of CCL
BDL is wholly owned by Barbara, a resident of Canada, who also owns all of the shares of CCL
Subject:LawPrice: Bought3
BDL is wholly owned by Barbara, a resident of Canada, who also owns all of the shares of CCL. Both corporations have a Dec 31 year-end. CCL had both active business income and taxable income of $360,000 for its most recent taxation year. Barbara has decided to allocate as much of the small business limit as is needed to maximize the small business deduction for CCL. Most of BDL's income is from an active business carried on in Canada. The following additional information pertains to BDL:
Recapture of CCA on sale of operating assets 5000
net taxable capital gain (active assets). 6000
charitable donations 3000
Division B net income for tax purposes 360,000
What is the appropriate small business deduction for BDL for 2019?
Calculation and explanation?
