Final Exam Review – Canadian Taxation
Chapters 1 & 2 - Not tested
Chapters 3 – 7
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Not tested directly
Still expected to know these concepts, as later chapters build on this material
Chapter 8 – Capital Gains & Losses
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Capital Gain vs. Business Income
Canadian Securities
Personal Use Property (PUP)
Listed Personal Property (LPP)
Financial Property
General Rules for Determining Capital Gain/Loss
Disposition & Proceeds of Disposition
Deemed Disposition
Deferred Proceeds
Capital Losses
Superficial Losses
Identical Properties
Principal Residence
Voluntary & Involuntary Disposition
Small Business Investments
Chapter 9 – Other Income & Other Deductions
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Major sources of other income (i.e. RRSP benefits, RRIF, Pension, OAS, CPP, EI)
Other deductions (i.e. RRSP contributions, moving expenses, child care expenses)
Registered Retirement Savings Plans (RRSP)
Registered Education Savings Plans (RESP)
Tax-Free Savings Accounts (TFSA)
Special Rules for Net Income Determination (i.e. Reasonableness Test, Non-Arms
Length Transactions)
Chapter 10 – Taxable Income & Taxes Payable for Individuals
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Determining Taxable Income
Loss Carry-Over & Loss Utilization
Capital Gains Deduction
Calculating Taxes Payable (Primary Taxes Payable)
Various Federal Tax Credits
Chapter 11 – Introduction to Corporations
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Determining Taxable Income
Loss Carry-Over & Loss Utilization
Dividends from Other Canadian Corporations
Calculating Taxes Payable (Primary Tax, Tax Abatement)
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Refundable Tax on Investment Income for CCPCs
Tax Reductions (General Rate Reduction, Small Business Deduction, M & P Deduction)
Provincial Tax & Multi-Provincial Tax
Integration of Corporate & Individual Taxation (i.e. Effect of Dividend Tax Credit)
Chapter 12 – Organization, Capital Structures and Income Distribution
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Tax Treatment – Debt vs. Equity
Sale of Shares Back to the Corporation
Transferring Assets to Corporation (FMV)
Transferring Assets at Tax Value (Section 85 rollover)
Chapter 13 – Canadian-Controlled Private Corporation (CCPC)
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Taxation of Income Earned by CCPC
- Active Business Income
- Specified Investment Business Income
- Capital Gains
- Personal Services Business Income
- Dividends
Advantages & Disadvantages of Incorporation
Loans to Shareholders
Limitation of Small Business Deduction (Rules of Associated Corporations)
Overall Tax Calculation for CCPC
- Similar to other corporations
- Small Business Deduction
- Refundable Tax
Refundable Dividend Tax on Hand (RDTOH) Account & Dividend Refund
Chapter 14 – Multiple Corporations & Reorganization
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Corporate Reorganizations (Asset Transfer, Amalgamation & Wind-Up)
Reorganization of Share Capital
Holding Corporations & Intercorporate Investments
Chapter 15 – Partnerships
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Taxation of Partnership Income & Partnership Interests
Chapter 16 – Limited Partnerships & Joint Ventures
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Taxation of Partnership Income & Partnership Interests
Loss Utilization – Limited Partners vs. General Partners
No testing of joint ventures
Chapter 17 – Trusts
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Taxation of Trusts – Inter Vivos, Testamentary, Spousal
Determining Taxable Income & Taxes Payable for Trusts
Income Allocation & Beneficiaries
21 Year Rule
Chapter 18 – Business Acquisitions & Divestitures – Assets vs. Shares
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Taxation of Business Acquisition & Divestiture – Shares – Vendor & Purchaser
- Calculating Capital Gain (Loss) on Sale of Shares
- Capital Gain Deduction (if QSBC)
- Calculate Taxable Income & Taxes Payable
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Taxation of Business Acquisition & Divestiture – Assets – Vendor & Purchaser
- Calculate Taxable Income on Disposal of Assets
- Calculate Taxes Payable
- Calculate Total Dividend & Taxable Dividend
- Calculate Taxes Payable on Dividend
- Calculate Capital Gain (Loss) on Disposal of Shares
- Determine if Capital Loss is Eligible for ABIL
- Tax Planning – Holding Companies & Intercorporate Investments
Chapters 19 – 21 - Not tested