T2
556 Small business deduction
Why is the DT Max calculation of the Alberta small business deduction on the AT1 Schedule 1 using a threshold in the amount of $430,000 for the period starting on January 1, 2007? This is incorrect, DT Max should use this threshold (as opposed to $400,000) for the period starting on April 1, 2007. Example: Corporation with March 31, 2007 year end. 1. DT Max small business deduction calculation is [275/365 (number of days before January 1, 2007) * 400,000 *0.070] + [90/365 (number of days after January 1, 2007) * 430,000 * 0.070] = $28,518; 2. The small business deduction calculation should be: 365/365 (number of days before April 1, 2007) * 400,000 * 0.070 = $28,000. As a workaround, use the keyword Override, then under Alberta schedules select the option Schedule 1, type "31" in the keyword Field-Data and enter the revised amount of the small business deduction in the $ field. |