CRA accommodates multiplication of small business deduction by professional partners

CRA has provided another ruling permitting incorporated members of a professional partnership to enjoy the small business deduction.  CRA accepts a representation that the professional corporations are not partners of each other, including representations that each such corporation is free to compete with the partnership.  Accordingly, the corporations are not required to share the small business deduction under the specified partnership income rules.

Neal Armstrong.  Summaries of 2013 Ruling 2013-0498961R3 under s. 125(7) – specified partnership income and s. 256(2.1).