2 3 Problem 3- Enter the appropriate amounts in the yellow boxes to calculate Part 1 Tax Payable. Write any additional work you have in the green 4 space to the right. Any grey boxes are calculated/formulized for you and you do not need to edit those. 5 6 Jansen's Part 1 tax payable for the year would be calculated as follows: 7 8 Base Amount of Part 1 Tax 9 Federal Tax Abatement 10 Foreign Business Tax Credit 11 Small Business Deduction 12 General Rate Reduction 13 Part 1 Tax Payable 14 15 Note 1: Small Business Deduction: 16 17 Small business deduction = 19% of the least of: 18 19 1-Canadian Active Business Income 20 21 2-Taxable Income 0.00 Note 1 0.00 Note 2 0.00 22 Less: Foreign Tax Credit Adjusted (negative) 0 23 24 3- Reduced Annual Business Limit: 25 Original Business Limit Allocated to Jansen 26 Less: TCEC Business Limit reduction (negative) 27 28 Small business deduction= 19% of least of 1, 2, or 3: 29 30 31 Note 2: General rate reduction: 32 33 Taxable Income 34 Less: Amount eligible for Small Business Deduction 35 Full Rate Taxable Income 36 Rate 37 General Rate Reduction 38 39 0 13% 0 0 0 You may show additional work here if you would like:
2 3 Problem 3- Enter the appropriate amounts in the yellow boxes to calculate Part 1 Tax Payable. Write any additional work you have in the green 4 space to the right. Any grey boxes are calculated/formulized for you and you do not need to edit those. 5 6 Jansen's Part 1 tax payable for the year would be calculated as follows: 7 8 Base Amount of Part 1 Tax 9 Federal Tax Abatement 10 Foreign Business Tax Credit 11 Small Business Deduction 12 General Rate Reduction 13 Part 1 Tax Payable 14 15 Note 1: Small Business Deduction: 16 17 Small business deduction = 19% of the least of: 18 19 1-Canadian Active Business Income 20 21 2-Taxable Income 0.00 Note 1 0.00 Note 2 0.00 22 Less: Foreign Tax Credit Adjusted (negative) 0 23 24 3- Reduced Annual Business Limit: 25 Original Business Limit Allocated to Jansen 26 Less: TCEC Business Limit reduction (negative) 27 28 Small business deduction= 19% of least of 1, 2, or 3: 29 30 31 Note 2: General rate reduction: 32 33 Taxable Income 34 Less: Amount eligible for Small Business Deduction 35 Full Rate Taxable Income 36 Rate 37 General Rate Reduction 38 39 0 13% 0 0 0 You may show additional work here if you would like:
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 79EDC
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Transcribed Image Text:2
3 Problem 3- Enter the appropriate amounts in the yellow boxes to calculate Part 1 Tax Payable. Write any additional work you have in the green
4 space to the right. Any grey boxes are calculated/formulized for you and you do not need to edit those.
5
6 Jansen's Part 1 tax payable for the year would be calculated as follows:
7
8
Base Amount of Part 1 Tax
9 Federal Tax Abatement
10 Foreign Business Tax Credit
11 Small Business Deduction
12 General Rate Reduction
13 Part 1 Tax Payable
14
15 Note 1: Small Business Deduction:
16
17 Small business deduction = 19% of the least of:
18
19 1-Canadian Active Business Income
20
21 2-Taxable Income
0.00 Note 1
0.00 Note 2
0.00
22
Less: Foreign Tax Credit Adjusted (negative)
0
23
24 3- Reduced Annual Business Limit:
25
Original Business Limit Allocated to Jansen
26
Less: TCEC Business Limit reduction (negative)
27
28 Small business deduction= 19% of least of 1, 2, or 3:
29
30
31 Note 2: General rate reduction:
32
33 Taxable Income
34 Less: Amount eligible for Small Business Deduction
35 Full Rate Taxable Income
36 Rate
37 General Rate Reduction
38
39
0
13%
0
0
0
You may show additional work here if you would like:
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