CdnTaxForum

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Reg 1100(3) Taxation year
(2005-08-21 09:45:06)
Q:CanIdeductfullyearofCAAifIpurchaseditemssomepointduringtheyear?A:Generallyyes,butitissubjecttoanumberofrestrictionsunderdifferentscenario.alittlebitmorecomplexthanyousimplequestion.halfyearruleisapplicableveryoftenwhenyouhaveanetincreaseinyourUCCpolli.e.youtotaladditionduringtheyearintospecificclassofassetsismorethanyoutotaldisposalandthereisassetremaininginthatclassattheendoftaxationyear.forexa...[阅读全文]
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20(1)(e) Expenses of issueing shares, borrowing money, life insu
(2005-08-17 11:34:37)
Q:CanIdeductexpensesincurredforissuingsecuritiesorborrowingmoneyforrunningbusinessorearnpropertyincome.A:Yes,butonastraightlinebasisof5years,generallyspeaking.Theyincludelegal,accountingandprintingfees,commissions,serviceorbonuspaidtosalesman,agentordealer.somevariations-ifthereisshortertaxationyear,amountmustbeproratedforlessdeduction.ifamountrepaidduringtheyear(notpartofrefinancing),remainingbal...[阅读全文]
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ss18(2) limit on certain interest and property tax
(2005-08-16 12:28:21)
Q:CanIdeducttheinterestandpropertytaxincurredtoacquireavacantland? A:Generallyspeaking,no. FirstpointIneedtoclarifyisthatwearetalkingaboutbusinessactivity.ie.bothinterestandpropertytaxarepaidforthepurposeofgainingorproducingincomefromabusinessorpropertywithrespecttothelandacquisition.Otherwise,neithinterestnorpropertytaxcanbedeductedandit'stheendofthestory. Ifyouareinthebusiness,badnewsisyo...[阅读全文]
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18(1)(r)Allowance for the use of an automobile
(2005-08-16 11:23:07)
Q:howmuchcanyoudeductasbusinessexpenseifyoupayallowancetoemployeeforusinghis/hercarA:norestrictioniftheallowanceisrequiredtobeincludedintheemployee'sincomeOtherwise,42cperkmforthefirst5000kmand36cperkmforthekmabove5000kmiftheuseofthecarisforbusinesspurpose.TherateisrevisedperiodicallybyCRA.[阅读全文]
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Para 18(1)p expenses related to a PSB
(2005-08-16 11:16:11)
1.WhatisPSB? PersonalServiceBusinessor'incorporatedemployee' Itusu.appliestoascenariowherethereisonlyoneemployeeinonecorporation,whoserveverylimitednumberofclient,usu.justone. CRAputrestrictionontheexpenseswhichcanbedeductedbythebusiness. Alloweddeductionarelimitedto: 1.salaryandbenefit 2.amountre.sellingofpropertiesandnegotiationofcontract 3.legalexpensesincurredtocollectaccount Basic...[阅读全文]
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Business vs. Property Income
(2005-08-16 09:08:01)
Whythedistinctionofthesetwotypesofincomeisimportant: 1.Fornon-resident,businessincomeissubjecttoPartItax.WhilepropertyincomeissubjecttowithholdingtaxunderPartXIII.inotherwords,youwillgetmoneynetofcertainpercentagewitheldbydistributingparties. 2.ratearedifferent-propertyincomeattractsrelativelyhighertaxthanbusinessincome.However,partofthetaxforpropertyincome(investmentincome)paidbyaprivatecor...[阅读全文]
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