Tax Elective 5

Question 1

no. of instalments for CCPCs with income below SBD

Answer 1

4

Question 2

Second generation income is?

Answer 2

Income on Income

Question 3

Attribution on transfer of property to spouses

Answer 3

yes - income & capital gains

Question 4

Year ends for inter vivos trusts

Answer 4

on Dec 31

Question 5

Year ends for testamentary trusts

Answer 5

any twelve month period (maybe changed?)

Question 6

Inter Vivos Trust - Tax Rate?

Answer 6

Highest personal rate

Question 7

Testamentary Trust - Tax Rate?

Answer 7

Gradualted peronsal rates without tax credits

Question 8

Board and Lodging (unless special work site) Taxable / Not ?

Answer 8

taxable benefit

Question 9

Low rent housing (other than north)Taxable / Not ?

Answer 9

taxable benefit

Question 10

travel benefits -Taxable / Not ?

Answer 10

taxable benefit

Question 11

gifts over $500 per year -Taxable / Not ?

Answer 11

taxable benefit

Question 12

holiday trips and prizes (not business trips) -Taxable / Not ?

Answer 12

taxable benefit

Question 13

employer paid education (benefit of employee) -Taxable / Not ?

Answer 13

taxable benefit

Question 14

tools -Taxable / Not ?

Answer 14

taxable benefit

Question 15

forgiveness of debt -Taxable / Not ?

Answer 15

taxable benefit

Question 16

travelling expenses of employee spouse -Taxable / Not ?

Answer 16

taxable benefit

Question 17

death benefits in excess of contributions -Taxable / Not ?

Answer 17

taxable benefit

Question 18

finacial couselling and tax returns -Taxable / Not ?

Answer 18

taxable benefit

Question 19

premiums for medical insurance the employee would have had to pay -Taxable / Not ?

Answer 19

taxable benefit

Question 20

discounts on merchandise -Taxable / Not ?

Answer 20

not taxable

Question 21

subsidized meals -Taxable / Not ?

Answer 21

not taxable

Question 22

uniforms -Taxable / Not ?

Answer 22

not taxable

Question 23

remote school services -Taxable / Not ?

Answer 23

not taxable

Question 24

transportation to job site -Taxable / Not ?

Answer 24

not taxable

Question 25

recreational facilities at place of work -Taxable / Not ?

Answer 25

not taxable

Question 26

reimbursement of moving expenses -Taxable / Not ?

Answer 26

not taxable

Question 27

private health service premiums -Taxable / Not ?

Answer 27

not taxable

Question 28

employers contribution to medical insurance -Taxable / Not ?

Answer 28

not taxable

Question 29

mental of physical counselling -Taxable / Not ?

Answer 29

not taxable

Question 30

professional membership fees -Taxable / Not ?

Answer 30

not taxable

Question 31

What shouldn’t be deducted on home office?

Answer 31

CCA

Question 32

EMPLOYEE home office? Can’t deduct

Answer 32

Interest

Question 33

To be able to claim employee expenses? (Form)

Answer 33

T2200

Question 34

Which accrual can professionals elect to not included?

Answer 34

Work In Progress

Question 35

Foreign tax deductibility?

Answer 35

If not foreign tax credit, entire amount of tax.

Question 36

Deductible or not? Club and recreational dues

Answer 36

Not

Question 37

Deductible or not? Life insurance premiusm

Answer 37

Not (unless collateral for a loan)

Question 38

Deductible or not? Share registration, legal, and commissions

Answer 38

Not (straight line over five years)

Question 39

Deductible or not? Incorp Costs

Answer 39

Added to CEC

Question 40

Capitalizatin of soft costs include?

Answer 40

Interest, legal, accounting fees, insurance, property taxes

Question 41

What happens to UNPAID amounts to non -arms length persons?

Answer 41

After second year not paid - included in income third year

(unless election filed)

Question 42

Class & Rate: Leasehold Improvements

Answer 42

Class 13 straight line over lease plus a term or 1/5 if less

Question 43

Class & Rate: Small Tools

Answer 43

Class 12 100%

Question 44

Replacement property rules - voluntario disposition

Answer 44

the next year, used in a business, used for same or similar

business

Question 45

Replacement property rules - involuntary disposition

Answer 45

in the next two years, used in a business

Question 46

Change in use, deemed disposition when?

Answer 46

Personal to business or business to personal use

Question 47

Chane in use, election avialable?

Answer 47

Change from rental to principal residence or vice versa -

can elect out?

Question 48

At what point can CCA be claimed on a building?

Answer 48

90% + of building being used or 2nd taxation year

Question 49

At what point can CCA be claimed on a vehicle?

Answer 49

When licenses are obtained.