Tax Flashcards
Can you get a tax credit on student loan payments?
Yes, for government student loans
If you are gifting property to an arm’s length person, what is your POD and what is their ACB?
Your POD=FMV
Their ACB=FMV
If you are gifting property to a NON arm’s length person for less than FMV, what is your POD and what is their ACB?
Your POD=FMV
Their ACB=the price they paid
If you are gifting property to a NON arm’s length person for no consideration (ie. a gift), what is your POD and what is their ACB?
Your POD=FMV
Their ACB=FMV
Is the assignment of a life insurance policy from a parent to their child considered a disposition?
No
Is the lifetime capital gains exemption applicable to real estate?
No, only qualifying small business shares
Can I deduct legal fees paid to increase spousal support?
Yes
What happens to non-registered assets when you die, if you have a spouse?
Rollover to your spouse at your ACB (so tax gets deferred until surviving spouse dies)
How is life insurance policy gain taxed if you cash out and get the CSV?
CSV minus ACB, fully taxed as income
Is WCB taxable?
No
Are research grants taxable?
Yes
If your spouse is self-employed, when do you need to file taxes by?
June 15
If the employer pays your premiums for life and critical illness insurance, is it a taxable benefit?
Yes
If the employer pays your premiums for health and dental insurance, is it a taxable benefit?
No
When are disability benefits taxed?
If your employer paid for part or all of the premium
When are disability benefits tax-free?
If you paid the entire premium yourself.
What does the lifetime capital gains exemption apply to?
Qualified small business shares. Does not apply to property.
Attribution rules for funds invested in child’s name?
capital gains are taxed in child’s hands at top marginal rate, while interest and dividends are taxed in the donor’s hands
Tax implications of transferring a life insurance policy to a charity?
You get the tax credit in the year of transfer for the cash value.
When do stock options become a taxable benefit? And what is the tax treatment?
At the time of exercise. Full amount added to income, but then a 50% deduction is allowed (to make this similar to capital gains taxation)
Basic Exemption amount? (2022)
$14,398
At what income level are you no longer eligible for GIS? (2022)
$20,000 for single person
$27,500 for couple
At what income level must businesses collect GST?
$30,000
At what income level does CCB become reduced?
$32,000
At what income level does CESG get reduced from $100 to $50? (2022)
$50,000
At what income level do you enter the 20% federal tax bracket?
$50,000
At what income level are you no longer eligible for CLB?
$50,000
At what income level are you no longer eligible for CDSB?
$50,000
What is the YMPE? (2022)
$64,900
At what income level does OAS start to be clawed back?
$79,000
At what income level do you enter the 26% tax bracket?
$100,000
At what income level do you no longer receive extra CESG?
$100,000
At what income level do only receive 100% CDSG matching instead of the 300% and 200%?
$100,000
At what income level do you get a full OAS clawback?
$130,000
Max RRSP contribution?
$29,210
At what income level do you enter the 29% tax bracket?
$155,000
At what approximate income level do you no longer receive CCB?
$160,000 to $190,000 depending on # of children, etc
At what income level do you enter the 33% tax bracket?
$221,000
Does income attribution occur after divorce/separation?
No
What is a non-refundable tax credit?
Can reduce tax to $0 but no less than $0.
What is a refundable tax credit?
Do not reduce tax payable. Usually paid to low income earners. Can include CCB and GST
Can personal use property create a capital loss?
No. PUP can only create capital gains?
Rules for ACB and POD of personal use property?
Minimum ACB=$1,000
Minimum POD=$1,000
Can depreciable property generate a capital loss?
NO
When does recapture occur?
Recapture = POD - UCC
When does a terminal loss occur?
When POD less than UCC
Medical Expense Tax Credit - how much can you claim?
The lesser of:
$2421 or 3% of income
Lifetime Capital Gains Exception criteria?
Must be company with 50% of its assets actively used in operations in Canada over a 24-month period. 90% of the assets need to be used in business operations at the time of the sale.
Shareholder had to own shares for 24 months prior to sale.
Principal Residence Exemption
(# yrs designated as PR + 1)/(# yrs owned)
