Employment and Business
Three items which are classified as LPP
What is (any 3 of)
Work of art
Jewellery
Rare book
Stamp
Coin
The amount of time that non-capital losses may be carried forward and used against other income.
What is 20 years
Calculate total TAXABLE property income for Joe Ltd.
Interest from a Canadian bank $500
Dividends from CIBC $1,000
Dividends from Apple $800
What is $1,300 (dividends from Canadian public company are excluded from income)
Calculate the capital loss
ACB $7,300
POD $6,500
What is $800
(6,500 - 7,300)
The corporate tax rate for a small Canadian Controlled Private Corporation operating an active business fully in British Columbia.
What is 12%
The length of time a salary can remain unpaid before the employer is not allowed the deduction.
What is 180 days after the end of its taxation year.
Calculate total property income for Joe Smith
Interest from a Canadian bank $500
Dividends from CIBC $1,000
Dividends from Apple $800
What is $2,680 (500 + 1000 + 380 + 800)
Calculate the taxable capital gain
ACB $5,000
Selling expenses $2,000
POD $7,500
What is $250
(7500-5000-2000) x 50%
Calculate the medical expenses tax credit:
NIFTP = $85,000
Medical expenses = $3,302
What is $150
(3302 - 2302 (maximum))*15%
The amount of equity required in a foreign affiliate in order to have dividends flow tax free to the Canadian corporation.
What is 10%
Calculate property income
Rental income before CCA building A: $900
Rental loss after CCA building B: $1,500
CCA on building A $5,000
CCA on building B $4,000
What is zero - CCA may only be used to bring total of all rental losses to zero. Will need to adjust CCA on Building B by $600 so that Building B loss offsets building A income.
Calculate the amount included in income
Building
ACB 50,000
UCC 45,000
POD 90,000
What is $25,000
(90000-50000) x 50% + (50,000-45,000 )
Three items that may be included in a rights and things return.
What is employment earnings that were owed at time of death
uncashed matured bond coupons
unpaid bond interest due before date of death
unpaid dividends that were declared before date of death
(any 3)
XX Ltd., a Canadian Corporation with a December 31 year end, has incurred the following losses
Non-capital loss $20,000 in 2014
Non-capital loss $13,000 in 2008
Net capital loss $19,000 in 2007
Determine the expiry dates for each of the losses
What is
2034
2028
does not expire
Calculate the total to be included in income
Original cost of vehicle $20,000
Operating costs $5,000
KM Driven = 16,000 personal; 14,000 business
What is $8,960
20,000 x .02 x 12 + 16,000 x .26
Calculate total property income for Jane Smith
Interest from a Canadian bank $500
Dividends from CIBC $1,000
Stock dividends from a CCPC $800
Royalties from book she wrote $700
What is $2,808 (500 + 1000 + 380 + 800 + 128) (royalties from own work are business income)
Calculate the amount included in income
Building
ACB 80,000
UCC 45,000
POD 70,000
What is 25,000 (recapture)
Capital loss not permitted on depreciable property.
Calculate net federal income tax payable:
Terri is 66 years old and has the following income
CPP $7,800
OAS $6,850
RRIF $1,492
RPP $5,000
What is zero
Tax payable 21,142 x 15% = $3,171
Less (basic tax credit $11,809 +Age tax credit $7,333 + Pension tax credit 2,000) x 15% = 3.171
Chartered Tours Inc. (CTI) started operations this year and had a net income for tax purposes of $800,000. (Chartered Tours Inc. operates in a province which has a provincial tax reduction on income earned from manufacturing and processing.)
During the year, CTI:
A) made a contribution of $25,000 to eligible charities;
B) received $30,000 in dividends from taxable Canadian corporations;
C) recognized manufacturing and processing profits of $250,000; and
D) had active business income of $770,000.
Calculate taxable income
What is 745,000
(800,000-25,000-30,000)