CGA-Tax Assignment Essay

1593 WordsOct 14, 20137 Pages
Session 4 (Summer) — Assignment 3 Top of Form Bottom of Form Question 1 (6 marks; 2 marks each) Heidi and Esther are sisters. Heidi owns 100% of common shares of Health Ltd . and Esther owns 100% of the common shares of Energy Ltd. In turn, Health Ltd. and Energy Ltd. own 91% and 9%, respectively, of common shares of Spirit Ltd. Required Citing references to the ITA, indicate which of these corporations are a. Related b. Associated c. Connected Solution: Heidi Esther 100% 100% Health Ltd Energy Ltd 91% 9% Spirit Ltd a)As per Spar 251 (2)(i)(c)(iii) Corporation Health, Energy and Spirit are related, since Heidi and Esther are related, therefore two corporations are related persons, if one…show more content…
She has heard that such losses are given special treatment under the Act. Briefly explain to Justina the special treatment given to business investment losses in the year of loss and in future years. Assume that Justina will earn $75,000 in salary in 2012 and has never claimed the lifetime capital gains deduction. Detailed calculations are not necessary. First, qualified business investment losses Business Investment Loss includes capital losses arising from the disposition of shares and debts of a small business corporation. An SBC is generally defined

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