Business Income Provisions Week 10 Flashcards
What does ITA 9(1) refer to?
Business profit per financials
Accounts Receivable income inclusion provision
12(1)(b)
Unearned Revenue income inclusion provision
12(1)(a)
Reserve for doubtful debts addback for the preceding year
12(1)(d)
Reserve for Doubtful Accounts
20(1)(l)
Reserve for undelivered goods and services
20(1)(m)
Reserve for accounts receivable
20(1)(n)
Which section requires that reserves must be added back into income the following year?
Various paragraphs in section 12.
CCA deductions
20(1)(a)
convention expenses deduction (no more than 2)
20(10)
Terminal Loss deduction
20(16)
Landscaping Costs deductions
20(aa)
Interest expense deductions
20(1)(c)
Costs incurred for acquiring funds (over 5 years 20%)
20(1)(e)
Limiting deduction not relating to business (catch all)
18(1)(a)
Not allowing accounting depreciation expense deductions and deduction of capital expenditure
18(1)(b)
Not allowing amount set aside for contingent liability deduction
18(1)(e)
Not allowing recreational facilities expenses and club dues deductions
18(1)(l)
Not allowing deductions for income tax interest and penalties deductions
18(1)(t) (only municipal taxes are deductible)
Not allowing costs of foreign medium that is targeting Canadian markets deductions
19
Not allowing Loss on disposal of depreciable assets
39(1)(b)(i)
addback of taxable capital gain
39(1)(a)
Business meals and entertainment deductions (50%)
67.1(1)(a)
will only allow the reasonable portion of the expense
Meal deductions for events (6 or less) that all the employee’s are invited (fully deductible)
67.1(2)(f)
