CCA and Taxes Payable - Corporate

Question 1

Active Business Income (ABI)

Answer 1

any income EXCEPT:
investment income
rental income
leasing income
income from a specified investment business
personal services business

Question 2

Aggregate Investment Income (AII)

Answer 2

income earned by a CCPC that is income from property (EXCLUDING DIVIDENDS) + any net taxable capital gains - any net capital losses applied in the year

Question 3

Small Business Deduction (SBD)

Answer 3

For a CCPC - reduced when capital employed in Canada exceeds $10 million

The least of:
i. ABI

ii. taxable income less foreign source income
iii. the business limit ($500,000)

Question 4

CCA

Answer 4

UCC balance + cost of acquisitions in the yr - disposals in the year (lessor of costs and proceeds) - 1/2 year rule if additions > disposals = base amount for CY CCA - CCA claimed in the yr (Base amount x %) - 1/2 yr rule = UCC balance, end of year