Corporation Tax Return - Business Activities - Line 284

[kky291]

I need help in putting the percentages on page 3 line 284 to 289 on the T2 Corporation Tax return. I have education consultancy business having a small revenue during 2014. In addition I paid an amount of $30k for franchise for a restaurant (under the same corporation) which did not work out and I lost that money. I am putting this loss as business expense on my T2 return. So my revenue generating business is education consultancy only. Can I just put consultancy business in line 284 with 100% of it in line 285. This is because although there was another business activity of food restaurant, but this did not created any revenue and is closed for now. (actually never opened, just paid this money and lost).

My question is whether I need to show both business activities in line 284 and 286. Or just the one is enough because that was only revenue generating busienss acitivity. And the guideline for this line says give the activity in percentage the revenue is generated from.

Thanks for all the help.

[kky291]

Line 284 says to put appropriate percentage splits for the revenue generated. But the restaurant business did not generate any revenue; and now the business is closed there is no scope of future revenue. Then why would the percentage has to be split for this business. I am not clear. Please let me know if my thinking is wrong. And if we have to split, how do split in the absence of any revenue.

[taxnano · Accepted solution]

Consolidate the activities of both business on the t2, but maintain separate books for each operation. You have to input both business with appropriate percentage split.

[kky291]

Line 284 says to put appropriate percentage splits for the revenue generated. But the restaurant business did not generate any revenue; and now the business is closed there is no scope of future revenue. Then why would the percentage has to be split for this business. I am not clear. Please let me know if my thinking is wrong. And if we have to split, how do split in the absence of any revenue.

[taxnano]

Ok, since the question refers to revenue enter 100% for education. if this question refers to percentage of activities your restaurant would have the bigger % because  it requires more capital and bigger logistics. The reason the software  is asking for % split is perhaps because you listed both operation for the year. That btw is correct to list both operations.

[kky291]

Thanks for your help,

[victor13561]

Thanks TurboTax