Problem
Car Ltd. is a CCPC through the 2022 taxation year. It has a December 31 year end. Its $400,000 Net Income For Tax Purposes is made up of the following components:
Active Business Income $365,000
Dividends From Taxable Canadian Corporations 15,000
Foreign Non-Business Income (100%) 32,000
The foreign jurisdiction withheld $3,200 from the foreign non-business income. The Company receives a credit against federal Tax Payable for this amount.
The Company is associated with a smaller company, Tardo Ltd. Tardo is allocated 20% of the business limit.
The Company has a non-capital loss carry over of $95,000 that it intends to deduct during 2022. The Taxable Capital Employed in Canada (TCEC) by the associated group totaled $11,660,000 for 2021 and will equal $9,125,000 for the 2022 year.
Task
Determine Car's small business deduction for the year ending December 31, 2022.