Taxation Chapter One Flashcards
Which of the following is taxable income?
Employment insurance
Which of the following type of income are not commonly reported to CRA by the payor
Rental
Which of the following most accurately describe Net income as calculated on the tax return?
The amount which is used to determine repayment of EI and OAS. Personal amount such as the age amount, and benefits such as the Canada child benefits.
Which of the following best describe Taxable income?
Both of the first 2 Options
Which of the following situations best resembles a taxpayer carrying on an adventure?
Tom routinely purchases and resells old comic books. Tom ensures that he maintain a profit of at least 20%. Tom has also secured a line of credit against his residence which allows tom to purchase a greater volume of comic books. Tom average 10 sales a week of comic books
Which line of the tax return show the taxpayers total income for the tax return?
Line 15000
Let us assume that each taxpayer earned $5000 in regular employment insurance benefits in 2022 . V repay a portion of the benefit because of EI Clawback?
Domenic who earned $75.000 as his net income before the adjustment must pay back 30%x$80.000-$75,375=$1387.50.Domenic net income is above the EI claw ack amount for 2022 of $70.375
Let’s assume that each taxpayer received 5000 in old age supplement benefits (OAS) in 2022 Each level greatly increase during 2022.which tax payer will have a social benefit to calculate?
Mary who earned $85.000 as her net income before adjustments must payback 15%*$85.000-$81.761=$485.85.Mary net income before adjustment is above the base amount of $81.761 of OAS for 2022
What type of income us self employment income?
Business income.
Which of the following best describe who pays taxes n Canada?
Canadian residents are taxed on worldwide income.
Which of the following must be reported in the Canadian tax return by residents of Canada?
The full amount of foreign pension income must be reported and a deduction claimed for the exempt portion .
Which of the following best describes types of income that are taxed essentially? (ie the taxes payable less than the ordinary income?
Both dividends and capital gains are taxed at lower rates than ordinary income.
Which of the following groups are required to file a tax return ?
Taxpayers who owe taxes for the year
Which of the following is the most accurate definition if total income ?
The sum of taxable amounts of income received by the taxpayer in the year plus certain non-taxable amount.
Which of the following most accurately describes net income as calculated on the tax return?
The amount which is used to determine repayments of EI and OAS. Personal amounts such as old age amount, and benefits such as the Canada Child Benefits.
