Tax Elective Supplementary II

Question 1

Section 85.1

Answer 1

Share for Share exchange - can opt out if applicable for CGE

Question 2

PUC Reduction

Answer 2

Increase in Legal Stated Capital - (Elected value - boot)

Question 3

Section 85 Rollover - ACB of new depreciable asset

Answer 3

Same position as transferor

Question 4

Big difference in paying salary vs. dividends

Answer 4

Salary deduction!

Question 5

Is the childcare expense ITC claimed as income?

Answer 5

No - Reduces ACB of renovation

Question 6

GRIP - 72% is on?

Answer 6

Income less AII and SBD

Question 7

Federal tax abatement is less provincial - income & ?

Answer 7

salaries

Question 8

What’s tricky about associated companies when children are involved?

Answer 8

Parents have their child’s percentage!

Question 9

Agg Inv Income is:

Answer 9

net capital gains (less carry overs) and other passive income

Question 10

ART is:

Answer 10

26.67% on The lesser of AII and (Taxable Income less SBD amount)

Question 11

SBD is:

Answer 11

Lesser of ABI, 500,000, & (Taxable Income less 4x foreign tax credit)!!

Question 12

Refundable portion of Part I Tax

Answer 12

lesser of: 26.67 of AII, Taxable INcome less SBD amount, part I tax payable

Question 13

2015 - How much in child care expense is available for a disabled child?

Answer 13

$10,000

Question 14

Disposing of shares requires which calculation?

Answer 14

Total distribution less deemed dividend = deemed proceeds. Less ACB = captial gain.

Question 15

Section 85

Answer 15

Rollover into a new corporation

Question 16

Section 86

Answer 16

Share exchange

Question 17

Advantage of Section 86 over 85

Answer 17

no formal election required (an no new corp) $

Question 18

What is your primary purpose in studying?

Answer 18

To be an excellent tax guy.