Where do I set Small Business Deduction eligibility?

Where to find it: CCPC PROFILE / CCPC REVENUES

Open CCPC PROFILE and review the Federal Small Business Deduction eligibility box. For a Québec corporation, review the separate Québec eligibility setting too. The corporate pre-run information also offers these settings.

These selections describe whether the model should apply the deduction when calculating active-business tax. They do not remove passive investment income or make all corporate returns active income.

Enter prior-year AAII in the corporate additional-information form and review corporate holdings’ interest, dividends and realized gains. TIME MACHINE calculates passive income from those holdings and uses the relevant prior-year information in its business-tax calculation.

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