|
  Business reserve on the T1139 |
How does the disposition of eligible capital property
affect the calculation of the business reserve on form
T1139?
The business income from the disposition of ECP should
not be taken into account in the calculation of the
additional income. The net income must therefore be
reduced by the business income related to the disposition
of ECP prior to applying the percentage calculated
as per the number of days.
Example:
| Year-end: |
January 31, 2002 |
| Net business income: |
$31,000 |
| Business income (from ECP): |
$6,000 |
On form T1139:
| Net income (loss) for your first fiscal period ending in 2002 |
|
31,000.00 |
M |
| Additional business income |
|
22,945.21 |
N |
Calculation of additional business income:
| $31,000 - $6,000 |
|
= $25,000 |
| $25,000 * 335 |
|
|
|
|
= $22,945.21 |
| 365 |
|
|
March 9, 1999
|