Taxable Capital Gains and Allowable Capital Losses
Sale/Purchase of a Business
Estate Planning
Rollovers
Miscellaneous
100
Arises on the disposition of capital property if the proceeds are greater than the asset cost base (ACB).
What is a Capital Gain?
100
The sale of business through the sale of ____ results in the same tax treatment as if the company disposed the assets in the ordinary course.
What is Assets?
100
Upon death, there is a ____ _______ of all property even though there might not be an actual sale.
What is Deemed Disposition?
100
Under a Section 85(1) rollover, you can elect an amount between ___ and fair market value?
What is a Cost?
100
What does PUP stand for?
What is Personal Use Property?
200
Capital ___ do not arise on the disposition of depreciable capital property.
What is Losses?
200
Determining the selling price using an earnings multiplier is more commonly used when conducting a sale of ___.
What is Shares?
200
Upon death, what is the value assigned to non-depreciable capital when transferred to a spouse?
What is the Asset Cost Basis (ACB)?
200
___, the most liquid asset on the balance sheet, is not permitted to be transferred as part of a Section 85(1) rollover.
What is Cash?
200
What exemption is calculated using the following formula:
1+ # of years designated / # of years owned * gain
What is the Principal Residence Exemption?
300
Non-capital losses can be carried forward how many years?
What is 20 years?
300
1) Can get reserve on capital gains for amount uncollected at year-end (5 year deferral opportunity); 2) May be able to utilize $800,000 capital gains exemption of qualified small business corporation (QSBC) shares if certain requirements are met. These are all pros for the ___ in a sale of shares divesture.
What is the Seller?
300
A method of planning for the succession of your assets with a desired tax effect by exchanging common shares for "freeze" preferred shares leaving common shares to accrue all future growth.
What is an Estate Freeze?
300
Section __ involves an internal reorganization of the capital of the Company. Typically the original holder of common shares converts common shares to retractable preferred voting shares.
What is 86?
300
"Ownership of tools" is part of the economic reality test used to decide between what two types of a worker's employment status?
What is Employee versus Self-Employed/Independent Contractor?
400
When the disposition of capital property results in a capital gain, 50% of the difference between the proceeds and the ACB is taxable and the other 50% goes into what account?
What is the Capital Dividend Account?
400
1) Choice as to which assets to acquire; 2) Increase UCC to fair market value; 3) Not liable for tax reassessments, lawsuits and other contingencies; 4) Goodwill is 75% tax deductible as ECE. These are all pros for the ___ in a sale of assets divesture.
What is the Purchaser?
400
Income received - income paid or payable to the beneficiaries + amounts designated NOT payable = ?
What is Trust Income?
400
Under a Section 85(1) rollover, total consideration received for the property must equal its FMV, if consideration exceeds FMV, the transferor will receive a taxable ____.
What is Benefit?
400
No taxes are payable upon ____, however, it is necessary to divide all assets on an after-tax basis between the two individuals and specify who gets what.
What is Divorce?
500
If unused after ten years, this type of loss becomes a capital loss that can be carried forward indefinitely and claimed against capital gains only?
What is Allowable Business Losses?
500
The divesture of a company through the sale of shares will cause a change in control, which will always result in a loss of this type of loss carry forwards?
What is Non-Capital?
500
A final tax return is due the later of 6 months after the date of death or April 30th, unless you are self-employed at which point you have to file by what date?
What is June 15?
500
In a Section 85(1) rollover, in exchange for the assets, what is one thing that must be received as consideration?
What is Shares?
500
Primary (dwellings, spouse, children) and secondary factors (bank, membership, personal property, economic ties, etc) are used to determine what?