Tax Elective 5 Flashcards
no. of instalments for CCPCs with income below SBD
4
Second generation income is?
Income on Income
Attribution on transfer of property to spouses
yes - income & capital gains
Year ends for inter vivos trusts
on Dec 31
Year ends for testamentary trusts
any twelve month period (maybe changed?)
Inter Vivos Trust - Tax Rate?
Highest personal rate
Testamentary Trust - Tax Rate?
Gradualted peronsal rates without tax credits
Board and Lodging (unless special work site) Taxable / Not ?
taxable benefit
Low rent housing (other than north)Taxable / Not ?
taxable benefit
travel benefits -Taxable / Not ?
taxable benefit
gifts over $500 per year -Taxable / Not ?
taxable benefit
holiday trips and prizes (not business trips) -Taxable / Not ?
taxable benefit
employer paid education (benefit of employee) -Taxable / Not ?
taxable benefit
tools -Taxable / Not ?
taxable benefit
forgiveness of debt -Taxable / Not ?
taxable benefit
travelling expenses of employee spouse -Taxable / Not ?
taxable benefit
death benefits in excess of contributions -Taxable / Not ?
taxable benefit
finacial couselling and tax returns -Taxable / Not ?
taxable benefit
premiums for medical insurance the employee would have had to pay -Taxable / Not ?
taxable benefit
discounts on merchandise -Taxable / Not ?
not taxable
subsidized meals -Taxable / Not ?
not taxable
uniforms -Taxable / Not ?
not taxable
remote school services -Taxable / Not ?
not taxable
transportation to job site -Taxable / Not ?
not taxable
recreational facilities at place of work -Taxable / Not ?
not taxable
reimbursement of moving expenses -Taxable / Not ?
not taxable
private health service premiums -Taxable / Not ?
not taxable
employers contribution to medical insurance -Taxable / Not ?
not taxable
mental of physical counselling -Taxable / Not ?
not taxable
professional membership fees -Taxable / Not ?
not taxable
What shouldn’t be deducted on home office?
CCA
EMPLOYEE home office? Can’t deduct
Interest
To be able to claim employee expenses? (Form)
T2200
Which accrual can professionals elect to not included?
Work In Progress
Foreign tax deductibility?
If not foreign tax credit, entire amount of tax.
Deductible or not? Club and recreational dues
Not
Deductible or not? Life insurance premiusm
Not (unless collateral for a loan)
Deductible or not? Share registration, legal, and commissions
Not (straight line over five years)
Deductible or not? Incorp Costs
Added to CEC
Capitalizatin of soft costs include?
Interest, legal, accounting fees, insurance, property taxes
What happens to UNPAID amounts to non -arms length persons?
After second year not paid - included in income third year
(unless election filed)
Class & Rate: Leasehold Improvements
Class 13 straight line over lease plus a term or 1/5 if less
Class & Rate: Small Tools
Class 12 100%
Replacement property rules - voluntario disposition
the next year, used in a business, used for same or similar
business
Replacement property rules - involuntary disposition
in the next two years, used in a business
Change in use, deemed disposition when?
Personal to business or business to personal use
Chane in use, election avialable?
Change from rental to principal residence or vice versa -
can elect out?
At what point can CCA be claimed on a building?
90% + of building being used or 2nd taxation year
At what point can CCA be claimed on a vehicle?
When licenses are obtained.
