Tax Elective 4

Question 1

Class and Rate: Patents

Answer 1

44 - 25% (or use 14)

Question 2

Class and Rate: Computers & OS

Answer 2

50 - 55% (2009-2011 was 52 at 100%)

Question 3

What is Eligible Capital Property?

Answer 3

Intangibles with unlimited lives

Question 4

CEC is added at what amount?

Answer 4

75% of cost

Question 5

CEC deduction is what?

Answer 5

7% of CEC balance.

Question 6

Vacant Land - excess property tax and interest?

Answer 6

Added to ACB of Vacant Land

Question 7

How much monthly is an auto lease deduction limited to?

Answer 7

$800 plus HST

Question 8

Two methods allowed for determining inventory are:

Answer 8

Average cost or FIFO

Question 9

Inventory valuation is at:

Answer 9

lower of cost and market

Question 10

Farm Losses: Hobby Farmer

Answer 10

Cannot deduct loss

Question 11

Farm Losses: Restricted

Answer 11

First $2500 full, next 30,000 at 50%

Question 12

When do restricted farm losses apply?

Answer 12

Not chief income but still expected to generate income

Question 13

Individual - instalments if:

Answer 13

> 3000 owed in year and either of past two years

Question 14

Corp - instalments if:

Answer 14

> 3000 owed in prior year

Question 15

Corp Tax - balance due (non ccpc)

Answer 15

2 months after

Question 16

Corp Tax - balance due (CCPC)

Answer 16

3 months after unless there is investment income (then 2 months)

Question 17

Trust - balance due

Answer 17

90 days after

Question 18

Individual - Instalments Due:

Answer 18

Mar Jun Sep Dec 15th

Question 19

Auto expense CCA max cost

Answer 19

30,000 + tax

Question 20

Taxable or Not? Club Dues

Answer 20

Not

Question 21

Taxable or Not? Discounts for all employees

Answer 21

Not

Question 22

Taxable or Not? Frequent Flyer points (non corp cc)

Answer 22

Not

Question 23

Taxable or Not? Subsidized meals

Answer 23

Not

Question 24

Taxable or Not? Uniforms

Answer 24

Not

Question 25

Taxable or Not? Recreational facilities

Answer 25

Not

Question 26

Taxable or Not? Transport passes

Answer 26

Not

Question 27

Taxable or Not? Reimbursement of moving expenses

Answer 27

Not

Question 28

Taxable or Not? Provided business trips, courses, computer

Answer 28

Not

Question 29

Taxable or Not? $1000 non cash gift/award

Answer 29

Taxable

Question 30

Taxable or Not? $500 or less non cash gift/award

Answer 30

Not

Question 31

Taxable or Not? Additional long service award under $500

Answer 31

Not

Question 32

Taxable or Not? Contrib to Group Sickness

Answer 32

Not

Question 33

Taxable or Not? Contributions to your private health plan services.

Answer 33

Not

Question 34

Taxable or Not? Counselling services

Answer 34

Not

Question 35

Taxable or Not? Board & Lodging

Answer 35

Taxable

Question 36

Taxable or Not? Benefits received of any kind unless exempt

Answer 36

Taxable

Question 37

Taxable or Not? Use of company vehicle

Answer 37

Taxable

Question 38

CCPC reassessment period

Answer 38

3 years

Question 39

What is the interest rate on late payments?

Answer 39

prescribed rate + 4%

Question 40

What components are there to a vehicle taxable benefit?

Answer 40

Standby Charge & Operating Benefit

Question 41

Empoyer Owned - Standby Charge

Answer 41

``` 1 or (if over 50% business) personal km / (1667 x avail days /30) x 2% x Cost incl HST x avail days / 30 ```

Question 42

Operating Benefit

Answer 42

27 cents per km (or if over 50% business then 50% of | standby charge)

Question 43

What is the corporate deduction for mileage?

Answer 43

First 5,000 km are 55 cents & the rest is 49 cents

Question 44

Employer Leased - Standby Charge

Answer 44

``` 1 or (if over 50% business) personal km / (1667 x avail days /30) x 2/3 x (lease incl hst less insurance component) ```

Question 45

What if a corporation pays more than the standard deduction?

Answer 45

Not deductible.

Question 46

When is the operating benefit reduced?B63AA51:B91

Answer 46

If > 50% business use then 50% of stabdby charge for | operating benefit.

Question 47

Restricted Farm Loss - two parts

Answer 47

Deductible amount ($17500) and restricted amount carried to FARMING income of other years.

Question 48

Employer RRSP contributions

Answer 48

Employer's contributions to the RRSP are included in the employee's income, but are then deducted as part of the RRSP contributions deduction.

Question 49

Company: Deductible? Contribution to PHSPs?

Answer 49

Yes

Question 50

Individual: Deductiblle? Contribution to PHSPs?

Answer 50

Yes, as medical expenses.