Q:CanIdeductfullyearofCAAifIpurchaseditemssomepointduringtheyear?A:Generallyyes,butitissubjecttoanumberofrestrictionsunderdifferentscenario.alittlebitmorecomplexthanyousimplequestion.halfyearruleisapplicableveryoftenwhenyouhaveanetincreaseinyourUCCpolli.e.youtotaladditionduringtheyearintospecificclassofassetsismorethanyoutotaldisposalandthereisassetremaininginthatclassattheendoftaxationyear.forexa...[
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Q:CanIdeductexpensesincurredforissuingsecuritiesorborrowingmoneyforrunningbusinessorearnpropertyincome.A:Yes,butonastraightlinebasisof5years,generallyspeaking.Theyincludelegal,accountingandprintingfees,commissions,serviceorbonuspaidtosalesman,agentordealer.somevariations-ifthereisshortertaxationyear,amountmustbeproratedforlessdeduction.ifamountrepaidduringtheyear(notpartofrefinancing),remainingbal...[
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Q:CanIdeducttheinterestandpropertytaxincurredtoacquireavacantland?
A:Generallyspeaking,no.
FirstpointIneedtoclarifyisthatwearetalkingaboutbusinessactivity.ie.bothinterestandpropertytaxarepaidforthepurposeofgainingorproducingincomefromabusinessorpropertywithrespecttothelandacquisition.Otherwise,neithinterestnorpropertytaxcanbedeductedandit'stheendofthestory.
Ifyouareinthebusiness,badnewsisyo...[
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Q:howmuchcanyoudeductasbusinessexpenseifyoupayallowancetoemployeeforusinghis/hercarA:norestrictioniftheallowanceisrequiredtobeincludedintheemployee'sincomeOtherwise,42cperkmforthefirst5000kmand36cperkmforthekmabove5000kmiftheuseofthecarisforbusinesspurpose.TherateisrevisedperiodicallybyCRA.[
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1.WhatisPSB?
PersonalServiceBusinessor'incorporatedemployee'
Itusu.appliestoascenariowherethereisonlyoneemployeeinonecorporation,whoserveverylimitednumberofclient,usu.justone.
CRAputrestrictionontheexpenseswhichcanbedeductedbythebusiness.
Alloweddeductionarelimitedto:
1.salaryandbenefit
2.amountre.sellingofpropertiesandnegotiationofcontract
3.legalexpensesincurredtocollectaccount
Basic...[
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Whythedistinctionofthesetwotypesofincomeisimportant:
1.Fornon-resident,businessincomeissubjecttoPartItax.WhilepropertyincomeissubjecttowithholdingtaxunderPartXIII.inotherwords,youwillgetmoneynetofcertainpercentagewitheldbydistributingparties.
2.ratearedifferent-propertyincomeattractsrelativelyhighertaxthanbusinessincome.However,partofthetaxforpropertyincome(investmentincome)paidbyaprivatecor...[
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