Tax Elective 9 Flashcards
How are commissions treated when purchasing shares?
They are added to the ACB
How are commission treated when selling shares?
They are deducted from the proceeds.
How are capital gains treated in the year of death?
They can be applied to other types of income.
How are SRED investement tax credits claimed?
Form T661
How much is the Ontario SRED investment tax credit for individuals? (and non CCPC corps)
15%
Pure research, applied research, and experimental development are eligible to be what types of deductions?
SR & ED
For SR & ED deductions, when must the amounts be paid.
Within the year or within 180 days of the year end.
What is the big change in SR & ED deductions in the past year?
Equipment cannot be written off at 100% any more.
How much is the Ontario SRED investment tax credit for CCPCs?
35% on up to 3,000,000 in qualified expenditures
Are SRED ITCs included in income?
Yes, in the year following the year it is claimed.
Are capital expenditures eligible for SRED?
No - must be CCA
How long before you make an HBP withdrawal, must you contribute to your RRSP?
At least 90 days.
How much can you withdraw from your RRSPs for the first time HBP?
25,000 (each person)
Who is considered a first time home buyer?
You or your spouse haven’t owned a house in four years.
OAS clawback starts when?
When your NET INCOME is above $72,809
What legal fees in a divorce MIGHT be deductible?
Only fees relating to securing support payments.
Moving expenses - cost you can claim for maintaining your former residence are capped at?
$5,000
What is a long-haul? (for truckers)
Over 24 hours and at least 160km away.
What portion of meals and entertainment can long haul truckers claim?
80%
Who else do long-distance trucker rules apply to?
Airline and railway workers
What two items can affect your lifetime capital gains deduction?
CNIL balance and if you have claimed an ABIL.
Simply put, what is qualified farm property?
Capital property or shares in a farm that has been owned for at least two years and employed primarily in farming.
What amount is the investment tax credit for childcare spaces?
25% for up to $10,000 of eligible expenditures. (not ongoing operating expenses.)
When must loans from a company be included in income?
If not paid back a year after they are borrowed.
