Incorrect small business limit

Program(s) affected: T2 Document created: June 17, 2003 Tax year(s): 2003 Document last modified: December 16, 2003 Version(s): Problem status: Fixed

Why is the federal small business limit calculated incorrectly for 2003 year-ends?

In v6.10 and later, DT Max doesn't take into consideration the increase in the small business limit for fiscal periods ending in 2003.

As a workaround, use the keyword Override for field 410, and indicate the total amount that should appear on line 410 of page 4 of the T2 jacket.

Note that for non-calendar year-ends, the new limit ($225,000) is prorated. For example, if the fiscal year-end is June 30, 2003, the limit will be calculated as follows:

Maximum deduction multiplied by the number of applicable days in the calendar year

2002: $200,000 * 184 / 365 = $100,822
2003: $225,000 * 181 / 365 = $111,575


Small business limit = $212,397

This problem is now fixed in version 7.01.