Personal Taxes Payable
Personal Financial Planning
Forms of Business
Calculation of Corporate Taxes Payable/Receivable
Miscellaneous
100
What type of income is used to calculate taxes payable?
What is taxable income?
100
An account that provides tax benefits for savings in Canada. Investment income, including capital gains and dividends are not taxed, even when withdrawn.
What is a Tax Free Savings Account (TFSA)?
100
A business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return.
What is a Proprietorship?
100
What is the starting point for calculating corporate taxes payable/receivable?
What is Net Income for Accounting Purposes?
100
What percentage of meals and entertainment are deductible when calculating corporate taxable income?
What is 50%?
200
Gifts over what dollar amount are included as an addition to taxable income?
What is $500?
200
You can annually contribute up to __% of your earned income to a RRSP.
What is 18%?
200
Taxable capital gains on disposition of shares in qualified small business corporations (QSBCs) can be tax-free up to this amount?
What is $800,000?
200
Arises when the balance in the CCA class is negative and is taken into income.
What is Recapture?
200
Under the replacement property rules, for a voluntary disposition property must be replaced within 1 year and within __ years for an involuntary disposition
What is 2?
300
Tax deductions reduce taxable income, whereas eligible tax credits reduce taxes _.
What is Payable?
300
The purpose of this tax credit is to provides integration between the personal and corporate taxation systems to ensure there is no difference between earning income personally, or earning it in a corporation and then paying that income out to yourself as dividends.
What is the Dividend Tax Credit?
300
Associated corporations must share the Small Business Deduction limit of $__?
What is $500,000?
300
What percentage of the costs and proceeds are included in the CEC account?
What is 75% (or 3/4)?
300
Luxury vehicles are included in what CCA class?
What is Class 10.1?
400
When an employer owns the automobile, two types of taxable benefits are incurred by the employee: Standby charge and _.
What is Operating Costs?
400
A Registered Education Savings Plan (RESP) is used to save for a child's post-secondary education. What is the current lifetime contribution limit per child?
What is $50,000?
400
What form of business has the following advantages: 1) Owners can be admitted or retired without tax consequences to the other shareholders 2) Business losses can be used against other types of the shareholder's income 3) Income splitting possible through salary
What is a Partnership?
400
Beginning of year balance + Part IV tax paid on taxable dividends - Dividend Refund received in prior year + Refundable Part 1 Tax = ?
What is Refundable Dividend Tax on Hand (RDTOH)?
400
A tax planning tip is to utilize the $2,000 excess contribution limit of what tax deferral investment instrument?
What is a Registered Retirement Savings Plan (RRSP)?
500
Home office expenses are deductible if: a) The space is used exclusively for the purpose of earning income from business and is used on a regular and continual basis for meeting clients, customers, etc. OR b) ?
What is Your Principal Place of Business?
500
These rules are designed to prevent a taxpayer from splitting income among family members and thereby reducing the total amount of tax payable.
What are the Income Attribution Rules?
500
To minimize taxes payable a CCPC should declare a ___ to the individual shareholders to reduce taxable income to the small business threshold.
What is a Bonus?
500
What is the rate for Class 43 - Manufacturing and Processing Equipment?
What is 30%?
500
A wind-up is only available if the parent owns greater than __% in the subsidiary and both are Canadian corporations.
What is 90%?
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