Taxable capital employed in Canada

Taxable capital in Canada helps decide if a corporation qualifies as a small business. This number comes from last year’s Schedule 33, line 690, and is mainly for your reference. It only matters if it goes over $10 million.

To finish the return, you can leave the value as zero and sign off, or enter 1 to clear the warning.

In some cases, Taxable Capital employed in Canada for the previous year may be the same as the retained earnings for that year. You’ll also need to consider other amounts, like contributed surplus and loans or advances to the corporation. For a full breakdown of what’s included and what’s deducted, check Schedule 33, line 690.