Tax Elective 9

Question 1

How are commissions treated when purchasing shares?

Answer 1

They are added to the ACB

Question 2

How are commission treated when selling shares?

Answer 2

They are deducted from the proceeds.

Question 3

How are capital gains treated in the year of death?

Answer 3

They can be applied to other types of income.

Question 4

How are SRED investement tax credits claimed?

Answer 4

Form T661

Question 5

How much is the Ontario SRED investment tax credit for individuals? (and non CCPC corps)

Answer 5

15%

Question 6

Pure research, applied research, and experimental development are eligible to be what types of deductions?

Answer 6

SR & ED

Question 7

For SR & ED deductions, when must the amounts be paid.

Answer 7

Within the year or within 180 days of the year end.

Question 8

What is the big change in SR & ED deductions in the past year?

Answer 8

Equipment cannot be written off at 100% any more.

Question 9

How much is the Ontario SRED investment tax credit for CCPCs?

Answer 9

35% on up to 3,000,000 in qualified expenditures

Question 10

Are SRED ITCs included in income?

Answer 10

Yes, in the year following the year it is claimed.

Question 11

Are capital expenditures eligible for SRED?

Answer 11

No - must be CCA

Question 12

How long before you make an HBP withdrawal, must you contribute to your RRSP?

Answer 12

At least 90 days.

Question 13

How much can you withdraw from your RRSPs for the first time HBP?

Answer 13

25,000 (each person)

Question 14

Who is considered a first time home buyer?

Answer 14

You or your spouse haven’t owned a house in four years.

Question 15

OAS clawback starts when?

Answer 15

When your NET INCOME is above $72,809

Question 16

What legal fees in a divorce MIGHT be deductible?

Answer 16

Only fees relating to securing support payments.

Question 17

Moving expenses - cost you can claim for maintaining your former residence are capped at?

Answer 17

$5,000

Question 18

What is a long-haul? (for truckers)

Answer 18

Over 24 hours and at least 160km away.

Question 19

What portion of meals and entertainment can long haul truckers claim?

Answer 19

80%

Question 20

Who else do long-distance trucker rules apply to?

Answer 20

Airline and railway workers

Question 21

What two items can affect your lifetime capital gains deduction?

Answer 21

CNIL balance and if you have claimed an ABIL.

Question 22

Simply put, what is qualified farm property?

Answer 22

Capital property or shares in a farm that has been owned for at least two years and employed primarily in farming.

Question 23

What amount is the investment tax credit for childcare spaces?

Answer 23

25% for up to $10,000 of eligible expenditures. (not ongoing operating expenses.)

Question 24

When must loans from a company be included in income?

Answer 24

If not paid back a year after they are borrowed.