Discussion 4

Which of the following statements regarding the IRS and/or Tax Court approaches to allocating home-related expenses between rental use and personal use is correct? O4 The Tax Court approach allocates more property tax and interest expense to rental use than does the IRS approach. Ob The Tax Court and the IRS approaches allocate the same amount of expenses, other than interest expense and property taxes, to rental use Oe The IRS approach allocates interest expense and property taxes to rental use based on the ratio of the number of days of rental use to the total days of the year. Od. None of the choices are correct. QUESTION 17

A3

1. According to the article by Tony Dimitriadis (see Supplementary Study Materials Folder), whether an amount received by a taxpayer following the sale of a capital asset (e.g. real estate) will be treated as capital or income depends largely on: Select one: The intention of the taxpayer when the property was first acquired The degree of renovation and development carried out on the property Whether the taxpayer held on to the property, rather than making a short term profit Whether the taxpayer is an individual or a business taxpayer All of the above are important considerations   2. Select the INCORRECT statement from the following options: Select one: The Cost Base of Personal Use Assets excludes Element 3 expenses (Ownership Costs) An antique vase bought at a garage sale for $200 and sold for $20,000 is exempt from CGT The indexation rate for assets acquired on 2 February 1986 was 41.4 All costs incurred under Element 3 (Ownership Costs) should be included in the indexation…

vi.2

Q29 If a property is partly use by the owner for own use and the other part is held for earning rentals or capital appreciation, then: Select one: a. The entire property is investment property b. The owner occupied property is investment property c. The part held for earning rentals or capital appreciation, if it can be sold or leased out separately shall be classified as investment d. The property cannot be classified as investment property

1 Under Section 1031 a personal residence or an automobile used solely for personal purposes will qualify for a tax free exchange. T/F perty cannot be used by dealers in real property. T/F

What would be the tax treatment of a superficial loss? a. Permanently denied. b. Immediately deductible. c. Deducted from the adjusted cost base (ACB) of the reacquired property. d. Added to the ACB of the reacquired property for the purposes of determining the future capital gain or loss when the property was sold.

2. Which of the following situations will result in a future deductible amount?  Carrying amount of the asset > tax base of the asset Tax base of the asset > carrying amount of the asset Carrying amount of the liability < tax base of the liability Financial income > Taxable income

Code Section __1_ spells out the gross income for landlords (lessor) when they have improvements made by their tenants (lessee) on the rental property. Code Section __2__ is about the tax basis of above mentioned property.

30

ANSWER 1, 2 AND 3

A3 please help......

The rules for depreciating assets for tax purposes are based upon provisions in the Blank______. Multiple choice question. capital cost allowance system 2002 Sarbanes-Oxley Act 1986 CRA Act 1986 OSC Act

1. Is compensation income subject to final tax? 2. Is income from the sale of real estate properties subject to final tax?

Which is not charged against the income of an estate? 1 Ordinary repairs to income-producing property 2 Expenses incurred to protect income flow 3 Loss on the sale of an estate asset 4 All of the above are charged against the income

Hh1.

Pls explain too

Which of the following is not a “tax status” for an asset? Capital loss asset. Capital asset. Section 1231 asset. Ordinary asset. . All of the above

Which of the following is correct about the tax law and taxpayers' strategy in the gains and losses netting process for individuals' property transactions? I.) Use any capital loss carryovers to first offset gains taxed at the 15% rate II.) The amount of Section 1245 Deprecation recapture is not part of the capital gains and losses netting process III.) The amount of Un-recaptured Section 1250 gain may become part of the capital gains and losses netting process

Can you please help me answer these questions