Tax

Question 1

11. UCC is the depreciated tax cost of depreciable property, calculated as the original cost less capital cost allowance (CCA) deducted in prior taxation years

Answer 1

UCC= Cost-Capital Cost Allowance

Question 2

IF FMV > ACB and the UCC, you will realize Capital Gain to the extent that
o FMV – ABC, and recapture of CCA (to the extent ACB-UCC)

IF FMV < ACB, but in excess UCC,
- you will have Recapture of CCA to the extent FMV-UCC

IF UCC > FMV, terminal loss =UCC-FMV
- So in this case, you have have terminal loss of 110-140=-30

Question 3

DEFERRED community of Property REGIME

• Spouse are fee to own and manage own property during marriage
• you can sell the car spouse gave you as fit without his permission

Answer 3

yo

Question 4

Donation tax–15% first 200, 29% afterward,
Donation Cannot exceed 75% of you net income
if large donation over threshold 33% fed tax credit

Answer 4

TFSA over contribution penalty 1% per month
if you over contributed on Oct 30, you still pay the penalty of Oct, sso by the end of year, you pay 3 month penalty

• even if you over contribute on Oct 30, withdraw on Oct 31, you still need to pay 1 month over contribution penalty

Question 5

You have to make Federal Installment payment –if tax is 3000

Question 6

4800 balance on credit card, with 16.5% nominal annual interest rate, compounded annually. You have 30% effective tax rate and is currently deciding whether to pay off debt

She paid off the debt in one year’s time, how much more before tax income will you require

Answer 6

4800*1.168=5592
interest 5592-4800=792
792/0.7=1131

Question 7

if you bought it and drop the sandwich onto flow, you would likely not to buy another one

Answer 7

HBP repay in 15 years
LLP repay 10 yersa

• HBP has 4 year window
  if you own rental property, not principal residence…you might still qualify for HBP