Which of the following expenses would be denied as a deduction as per provisions of the Canadian Income Tax Act? a. Maintenance fees on a yacht at Yellow Yacht Leasing Inc. b. Legal and accounting fees incurred during the construction of a building c. Advertising costs in a non-Canadian newspaper directed at an American market d. Workspace in a home used as a taxpayer's principal place of business
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Which of the following expenses would be denied as a deduction as per provisions of the Canadian Income Tax Act? a. Maintenance fees on a yacht at Yellow Yacht Leasing Inc. b. Legal and accounting fees incurred during the construction of a building c. Advertising costs in a non-Canadian newspaper directed at an American market d. Workspace in a home used as a taxpayer's principal place of business
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- In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. Whether taxpayers rent or own their residence. d. Taxpayers filing status (e.g., single, married, filing jointly). e. Whether married taxpayers decide to file separate returns. f. The taxpayers uninsured personal residence was recently destroyed by a wildfire (the region was declared a disaster area by the Federal government). g. The number of dependents the taxpayer can claim.Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(a) of the NIRC? a. Salary received by a managing director of a general professional partnership. b. A passive income in the form of a prize win in a raffle amounting to P4,000.00. c. A gain from sale of his personal motor vehicle as another income of a taxpayer who is a compensation earner. d. A gain on sale of a real property for private use of the family of the taxpayer.Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(A) of the NIRC? Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(A) of the NIRC? a. A gain from sale of a motor vehicle as another income of a taxpayer who is a compensation income earner b. A passive income in the form of prize won in a raffle amounting to PHP 4,000 c. Salary received by a managing partner of a general professional partnership d. A gain on sale of a real property for private use of the family of the taxpayer
- 1. Which of the following is required to file an income tax return? A. An employee covered by the substituted filing system. B. A taxpayer deriving purely passive income subject to final tax. C. A special alien with respect to his compensation income. D. A non-resident citizen who derives his entire income form sources outside the Philippines. 2. The taxable income of a mixed income earner is the : A. Net income from business less personal exemption B. Net income from business C. Taxable compensation income D. Taxable compensation income plus net income from business.Which of the following should not be claimed as deductions from gross income? A. Interest payment on loans for the purchase of machinery and equipment used in business. B. Salaries and bonuses paid to employees. C. Discounts given to senior citizens on certain goods and services D. Advertising expense to maintain some form of goodwill for the taxpayer’s business. Which of the following is NOT income tax exempt?* A. BOI-registered enterprise enjoying tax holiday B. Forex transaction income of a Foreign Currency Depositary Unit from another Foreign Currency Depositary Unit C. Forex income in the Philippines of an Offshore Banking Unit D. Regional area headquarter of a multinational company E. None of the Above A resident corporation is one that is: A. Organized under the laws of a foreign country that engages in business in Makati City,Philippines. B. Organized under the laws of the Philippines that…Taxpayers who make a combined business and pleasure trip: a.Can deduct the cost of meals, lodging, local transportation, and incidental expenses in full. b.Must allocate the travel cost between the business and pleasure parts of the trip if the travel is outside the United States. c.Can take a tax deduction only for the personal part of the trip. d.Must allocate the travel cost between the business and pleasure parts of the trip if the travel is within the United States.
- RIGHT OR WRONG For taxation purposes, the house and lot as family home of taxpayer is his ordinary asset. When inventory of goods are sold at price lower than cost, the seller has capital loss. When production machine of the business is sold at a mark up on cost, the seller has ordinary business income. When personal valuable necklace of the taxpayer is stolen, the taxpayer has capital loss. Capital gain tax is an income tax. The mark up on the sale of an equipment used in business activities is reportable in 1701 tax return of the sole owner of such business. 7. The sole proprietor sold for P500,000 its inventory with carrying cost of P400,000. The sale will result to BUSINESS INCOME OF 100k CAPITAL GAIN OF 100k BUSINESS INCOME OF 500k CAPITAL GAIN OF 500k 8. The investment in bond was sold by the resident citizen at mark up of P200,000 on carrying cost. If the bond has maturity of 5 years, the mark up on cost is EXEMPT FROM INCOME TAX TAXABLE INCOME BUSINESS INCOME…1. Which of the following is not deductible from gross income? a. Transportation expense from the main office to the branch b. Transportation expense from home to the office and from the office back to home c. Travel expenses on business trips d. Travel expenses while away from home in the pursuit of trade, business or profession. 2. Examples of taxes that are deductible except: a. Occupation tax b. Privilege tax c. Documentary stamp tax d. Philippine income taxAc. Which of the following statements regarding the home office deduction is true? In order to qualify for the deduction, a portion of the taxpayer's home must be used regularly and exclusively to meet with clients or customers. A home office deduction is not allowed for using the home office for administrative or management activities only. The home office deduction is limited to the taxable income of the business before the deduction. A depreciation deduction is not allowed for a home office.
- Which of the following statements is incorrect? Assume that the rental activity is classified as ‘production-of-income.’ If the taxpayer sells the rental property later at a loss, the loss will be treated as a capital loss (i.e., $3,000/$1,500 deduction limit in the current year). An amount that would have been paid in an arm’s-length transaction is considered a reasonable amount as deduction. Payment (except for medical or educational expense) of another person’s obligation does not result in a tax deduction for the payer. Regarding the start-up costs, if the new business is in the same line of business as the existing one and if the new business is not launched, then none of the start-up costs are deductible. Payments for a speeding ticket are nondeductible. HELP-Which of the following should not be claimed as deductions from gross income? * interest payment on loans for the purchase of machinery and equipment used inbusiness. salaries and bonuses paid to employees. discounts given to senior citizens on certain goods and services. advertising expense to maintain some form of goodwill for the taxpayer’s business.Which of the following statements relating to the tax treatment of an employee is FALSE? (i) Christina, an Australian, is engaged to work in Singapore from 18 November 2020 to 31 December 2020. During the same period, she derived interest income from a loan given to a company in Singapore. All of her income sourced in Singapore will be tax exempt in YA 2021 since she exercised employment in Singapore for not more than 60 days in year 2020.(ii) Amy, a Singaporean, was seconded to work with a subsidiary company in Malaysia for 1 year, starting from 1 January 2020. For the Year of Assessment 2021, she will still be considered as tax resident in Singapore since her absence from Singapore is temporary.(iii) Xiao Ping, from China, commenced her employment with a Singapore company on 1 August 2020 and her contract will end on 30 January 2021. She is not required to travel outside of Singapore for work purposes. She arrived in Singapore on 15 July 2020 to settle in as well as to do some…