Business Income Provisions Week 10

Question 1

What does ITA 9(1) refer to?

Answer 1

Business profit per financials

Question 2

Accounts Receivable income inclusion provision

Answer 2

12(1)(b)

Question 3

Unearned Revenue income inclusion provision

Answer 3

12(1)(a)

Question 4

Reserve for doubtful debts addback for the preceding year

Answer 4

12(1)(d)

Question 5

Reserve for Doubtful Accounts

Answer 5

20(1)(l)

Question 6

Reserve for undelivered goods and services

Answer 6

20(1)(m)

Question 7

Reserve for accounts receivable

Answer 7

20(1)(n)

Question 8

Which section requires that reserves must be added back into income the following year?

Answer 8

Various paragraphs in section 12.

Question 9

CCA deductions

Answer 9

20(1)(a)

Question 10

convention expenses deduction (no more than 2)

Answer 10

20(10)

Question 11

Terminal Loss deduction

Answer 11

20(16)

Question 12

Landscaping Costs deductions

Answer 12

20(aa)

Question 13

Interest expense deductions

Answer 13

20(1)(c)

Question 14

Costs incurred for acquiring funds (over 5 years 20%)

Answer 14

20(1)(e)

Question 15

Limiting deduction not relating to business (catch all)

Answer 15

18(1)(a)

Question 16

Not allowing accounting depreciation expense deductions and deduction of capital expenditure

Answer 16

18(1)(b)

Question 17

Not allowing amount set aside for contingent liability deduction

Answer 17

18(1)(e)

Question 18

Not allowing recreational facilities expenses and club dues deductions

Answer 18

18(1)(l)

Question 19

Not allowing deductions for income tax interest and penalties deductions

Answer 19

18(1)(t) (only municipal taxes are deductible)

Question 20

Not allowing costs of foreign medium that is targeting Canadian markets deductions

Answer 20

19

Question 21

Not allowing Loss on disposal of depreciable assets

Answer 21

39(1)(b)(i)

Question 22

addback of taxable capital gain

Answer 22

39(1)(a)

Question 23

Business meals and entertainment deductions (50%)

Answer 23

67.1(1)(a)
will only allow the reasonable portion of the expense

Question 24

Meal deductions for events (6 or less) that all the employee’s are invited (fully deductible)

Answer 24

67.1(2)(f)

Question 25

illegal expenses are not deductible

Answer 25

67.5(1)