Question

Which of the following deductions apply to both corporations and individuals?

a. the capital gain deduction (cgd) potentially applicable on the sale of qualified small business corporation (qsbc) shares.
b. charitable donations.
c. loss carry-forwards and carry backs.
d. dividends received from taxable canadian corporations.

Answer 1

The deductions that apply to both corporations and individuals are the capital gain deduction (CGD) on qualified small business corporation (QSBC) shares, charitable donations, and loss carry-forwards and carry backs.

Step-by-step explanation:

The deductions that apply to both corporations and individuals are:

1. The capital gain deduction (CGD) potentially applicable on the sale of qualified small business corporation (QSBC) shares. This deduction allows individuals and corporations to reduce their taxable income when they sell shares of a qualified small business corporation, resulting in a lower tax liability.
2. Charitable donations. Both corporations and individuals can claim deductions for donations made to qualified charitable organizations. These deductions can help lower the overall tax liability.
3. Loss carry-forwards and carry backs. This deduction allows both corporations and individuals to offset current and future income against previous losses. It helps individuals and corporations recover from financial setbacks by reducing their tax burden.