Capital Gains II
Capital Gains III
Sole Proprietorhip
Partnership
Corporation
100
The Income Tax Act provides for this, which shelters capital gains of $848,252 (in 2018) on qualified small business corporation shares (QSBCS). The amount is $1MM for qualified farm and fishing property
What is the Lifetime Capital Gains Exemption
100
This term refers to intangible items such as incorporation costs, goodwill or patents, items that are referred to for tax purposes as goodwill and nothing items
What are Eligible Capital Expenditures
100
A sole proprietorship must carry on this type of business, rather than simply be a passive investment
What is active business
100
A characteristic of a general partnership that considers each partner to be a principal with full authority to act on behalf of the partnership, with loyalty, good faith, and good judgment is known as this type of responsibility
What is fiduciary
100
This is a private corporation, incorporated in Canada, and is not controlled by a public corporation or crown corporation, and is not controlled by a foreign individual, trust, partnership, or corporation
what is a CCPC or Canadian Controlled Private Corporation
200
These rules were developed to prevent individuals from simultaneously claiming a capital gains deduction as well as the deduction of investment expenses
What are Cumulative Net Investment Loss rules (CNIL)
200
This is a notional account available to private corporations to integrate corporate and personal income tax on the receipt of items such as capital gains and the proceeds of life insurance policies received by the corporation
What is Capital Dividend Account (CDA)
200
Most sole proprietorships select a business year end of this date?
What is December 31st
200
A partner’s personal liability includes liability for negligence, wrongdoings and errors and omissions by any of the employees or partners in the course of business. Each partner is _______________and____________liable
what is jointly and severally
200
This is the term that refers to the maximum number or value of shares that a corporation may issue as prescribed in the corporation’s charter
what is authorized share capital
300
This is a deduction from net income that the Income Tax Act makes available to a taxpayer to reflect, in part, wear and tear or declining utility on depreciable capital property
What is Capital Cost Allowance
300
If a taxpayer is assessed for Alternative Minimum Tax in any given tax year, the amount paid in excess of regular tax liability can be carried forward and applied as tax payment for this many years
What is 7
300
A sole proprietorship is not a separate legal entity, therefor the owner’s business and personal assets may be exposed to creditors. This is called what type of liability
What is unlimited liability
300
Property and business income, taxable capital gains, and allowable capital losses retain their_____________, which flows through to each partner where allocations are made
What is character
300
A shareholder is subject to special restrictions on money borrowed from the company (shareholder loan) where they are considered this_____________, defined as an individual who owns 10% or more of the share capital or who is not at arm’s length with the corporation
what is a specified employee
400
In the situation where the proceeds of disposition exceed the undepreciated capital cost (UCC) balance in the class, this is triggered
What is recapture or recapture of depreciation
400
Income attribution occurs when income generating property is transferred to some designated persons. A loan to acquire the property, at the prescribed interest rate, can avoid attribution. Interest on these loans must be paid by this date
What is January 30th or 30 day period following year end
400
this is where taxable income generated by the business is filed/taxed
what is the personal return or proprietors own return
400
In a situation where an allocation of income was principally based on the reduction or postponement of income, this could override the allocation
what is the Act or the Income Tax Act
400
Monies withdrawn and not accounted for as salary or as a bona fide loan will be treated as this _________, which usually results in monies received being treated as additional income to the owner/managers income for that taxation year
what is appropriation
500
Alternative Minimum Tax is a structure that provides for the recalculation of tax based on the removal of these
What are tax credits or deductions or preferences
500
This is the official name of the income splitting tax imposed to discourage income splitting with minor children, often referred to as ‘kiddie tax’
what is tax on split income (TOSI)
500
A proprietor can employ staff and pay them salary, which is a business expense. The proprietor may not pay himself a salary, instead it is considered this
What is a draw
500
When a taxpayer loans, gifts or transfers funds to a spouse or minor child to invest in a limited partnership, the income is treated as property income and therefor is this, back to the transferor
what is attributed, or income attribution
500
A planning technique that allows the owner of an operating company to freeze the growth on his interest of an operating company in order to avoid further capital gain on his shares that would be triggered at death is called this_________________
what is an estate freeze
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