Eligible Dividends and the Small Business Deduction
EXAMPLE: Taxpayer with total income before dividends of approximately $30,000Actual Taxes Payable with Eligible Dividends of $300,000 The tax rate on eligible dividends is much lower than the rate on “other than eligible dividends” (see table below). However, there must be sufficient “general rate income pool” (GRIP) to pay eligible dividends from. Dividends Income Tax … Read more