Associated Corporations Determination Tool

Two corporations controlled by the same person, or by related persons, share one small business deduction limit whether anyone files the paperwork or not.

Reading This Tool

How To Use This Calculator

Enter the voting share ownership percentage each corporation's controlling person or group holds.

Control, not just ownership, is the core test, generally more than 50% of voting shares held by the same person or the same related group in both corporations. Related persons for this purpose include a spouse, and children under 18, among others.

Your Inputs

Same Person Or Group's Voting Ownership In Corp A 60%

Same Person Or Group's Voting Ownership In Corp B 55%

Are The Controlling Shareholders Related Persons? (Spouse, Parent, Child Under 18)

This checks the core de jure control test only. Real determinations also cover de facto control, options and rights to acquire shares, and specific cross-ownership rules, all of which can create association even where this simplified test says no.

Association Status

Result

Corp A Control Test

Corp B Control Test

Controlling Ownership In Each Corporation

Associated corporations must file Schedule 23 to agree on how the shared small business deduction limit is allocated between them. This is a screening tool for a genuinely technical area, get an actual determination confirmed before relying on it for a filing position.

Confirmed you're associated? Allocate the limit properly.

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