Set 6 TX Property Income Flashcards
1
Q
What method of interest reporting do corporations use?
A
Conventional accrual
2
Q
Interest reporting - individuals
A
Earlier of:
- when cash is received
- accrual on anniversary date
3
Q
Dividends - corporations
A
Include in net income for tax, deducted to determine taxable income
4
Q
Dividends - individuals
A
Gross-up in income, receive credit
5
Q
How are capital dividends treated?
A
Received on tax-free basis
6
Q
How is rental revenue taxed?
A
Under accrual basis, along with expenses
7
Q
Can you use CCA to create a loss for rental property income?
A
No
8
Q
Carrying charges on vacant land - interest on loans and property tax - deductible?
A
Only to extent of income earned on land
9
Q
Soft costs - interest, legal accounting etc. how are these treated?
A
not deductible during construction, reno or alteration of building - they are added to cost.
