I need some insight on a minor issue filling out CGI form.
One shareholder has shares in 2 corporations. I have selected ‘relationship code’ as 3 as being ‘associated’. But having problem entering the ‘association code.’ I cannot enter code 1 (Associated for Small Business Deduction) because this corporation does not have active business income as it earns rental income.
But if I do enter code 1 ( Associated for Small Business Deduction ), Sch 23 Column 6 box turns yellow and asks to allocate Business Limit and the dialogue box reads 'business limit allocated is greater than taxable income. Consider allocating business limit to associated corporations’