Which of the following statements with respect to the lifetime capital gains deduction is correct? For purposes of calculating this deduction, the annual gains limit is reduced by the amount of the individual's CNIL The maximum deduction for qualified small business corporations is indexed for inflation and increases slightly each year. The cumulative gains limit includes the annual gains limits for all previous years, but not for the current year. It is always preferable to deduct net capital loss carry overs prior to making any use of the lifetime capital gains deduction