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Hi,
After several years of only investment activity (and net losses), my corporation has consulting income and thereby positive net income this year.
I have non capital losses of previous years (T2 box 331) to offset this income.
Two questions:
- do i have to fill out a schedule 7 even though the small business/CPCC credit will be null because T2 box 360 is 0?
- in part 6 of schedule 4 should I update the analysis chart with a negative entry for this year?
Thank you for your help.
Even if there is an overall loss, I still recommend that you prepare Schedule 7 to ensure completeness of the tax filing. However, if you don't fill out Schedule 7 there won't be any impact since the company has an overall loss, and so the small business deduction is not being claimed. Furthermore, Schedule 4 should be updated to show the current year loss and to show the application of prior years' losses (if any) to the current year's profits.