Ch. 23 - Division C Deductions (Corporate)

Question 1

Section 110 Deductions (Charitable Donations):

1. limit of deduction
2. carry rules

Answer 1

1. deduction limited to 75% of net income for tax purposes

2. unused amounts can be carried forward 5 years

Question 2

Section 110 Deductions (Charitable Donations):

- Carry forward

Answer 2

• any amounts not deducted can be carried forward up to five years

Question 3

Section 111 (loss carryovers): Non-Capital Loss

• type of income
• carry back period
• carry forward period

Answer 3

• Any type of income
• 3 years
• 20 years

Question 4

Section 111 (loss carryovers): Net Capital Loss

• type of income
• carry back period
• carry forward period

Answer 4

• Taxable capital gains
• 3 years
• indefinite

Question 5

Section 111 (loss carryovers): ABIL

• type of income
• carry back period
• carry forward period

Answer 5

• any type of income
• 3 years
• 10 years (then converts to net capital loss)

Question 6

Section 111 (loss carryovers): farm loss Loss

• type of income
• carry back period
• carry forward period

Answer 6

• any type of income
• 3 years
• 20 years

Question 7

Section 111 (loss carryovers): restricted farm Loss

• type of income
• carry back period
• carry forward period

Answer 7

• Farm income
• 3 years
• 20 years

Question 8

Section 112 (Dividends Received from a Corporation Resident of Canada):
- Foreign Source Dividends

Answer 8

• Do not get a deduction

Question 9

Section 112 (Dividends Received from a Corporation Resident of Canada):
-qualifying dividends include

Answer 9

• dividends from taxable Canadian corps
• Dividends from taxable subsidiary corps resident in Canada
• Dividends from non-resident corps carrying on business in Canada
• Dividends from foreign affiliates that have been taxed in foreign jurisdiction