Can treat gain on disposition of eligible capital property as a capital gain o

Can treat gain on disposition of eligible capital

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Can treat gain on disposition of eligible capital property as a capital gain: o Must be a capital property of business, not goodwill o Cost of property to taxpayer must be determinable o Proceeds must be > cost o Taxpayer’s exempt gains balance in respect of business must be zero o Taxpayer must elect in the taxpayer’s return of income for the year CAPITAL PERSONAL PROPERTY AND THE INPUT TAX CREDIT SYSTEM UNDER GST/HST Basic Rules - Input tax credit available as long as purchase of property or service was received for commercial activity - Special rules for capital property - Two groups: capital personal property, capital real property - Capital property: any except class 12, or class 14. Passenger Vehicles and Aircraf - Can’t claim ITC on portion of cost of vehicle that is over $30,000, excluding GST/HST. - Can’t claim ITC on improvements of vehicles that’s over $30,000 - Can only claim ITC on $30,000 or less if primarily used for commercial activity - Two types: o Owned by registrants other than individuals or partnerships (can claim up to $30,000 only if vehicle used for 50% or more for commercial activity. o Owned by registrants who are individuals or partnership: (can claim up to $30,000 as long as used 90% or more for commercial activity) -
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  • Winter '13
  • NATHALIEJOHNSTONE
  • Depreciation, Generally Accepted Accounting Principles, CCA

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