Line 410 - Business limit
Line 410 - Business limit
The maximum allowable business limit for a corporation that is not associated with any other corporation is $500,000.
CCPCs that are associated with one or more corporations during the tax year have to file Schedule 23, Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Business Limit. On this schedule, a percentage of the business limit is allocated to each corporation, and the total of all percentages cannot be more than 100%. See page 33 for details about Schedule 23.
On line 410, enter the business limit for the year. If applicable, enter the amount from Schedule 23.
Notes
If the tax year is shorter than 51 weeks, you have to
prorate the business limit, based on the number of days
in the tax year divided by 365, before you enter it on
line 410.
If a CCPC is associated with two other corporations and elects for the two other corporations not to be associated with each other for the purpose of the line 616 deduction, it has to file Schedule 28, Election not to be Associated Through a Third Corporation. For more details, see page 34.
References
Subsections 125(2), 125(3), 125(5), and 256(2)
IT-64, Corporations: Association and Control
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