Corporate Group Information Form

T2
1

Hi

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’

2

In that message box that appears (over the yellow cell), move your mouse to the right edge of the message box and click the check mark to acknowledge the message. The cell will turn white, and the warning will be gone.