OTHER INCOME, OTHER DEDUCTIONS, AND SPECIAL RULES FOR
COMPLETING NET INCOME FOR TAX PURPOSES
In addition to income from employment, business, property, and capital gains, taxpayers
must include income from other sources when
THE ACQUISITION, USE, AND DISPOSAL OF DEPRECIABLE
Under the income tax system, neither capital expenditures nor amortization/depreciation
can be deducted when income for tax purposes is being calculated. The same sys
LIABILITY FOR TAX, INCOME DETERMINATION, AND
ADMINISTRATION OF THE INCOME TAX SYSTEM
Which of the following entities are subject to income tax?
(c) joint venture
(e) limited partner
GAINS AND LOSSES ON THE DISPOSITION OF CAPITAL PROPERTY
A capital gain or capital loss is the gain or loss realized from the disposition of capital
property. What is meant by the term capital property, and how i
Solution to Assignment Problem Six - 6
As covered in this Chapter 6, ITA 12(1)(l) requires inclusion of business income from a partnership. As
explained in more detail in Chapter 18, Partnerships, each partners share of partnership profits is
CHAPTER ELEVEN SOLUTIONS
Solution to Assignment Problem Eleven - 1
The required information can be calculated as follows:
Taxable Dividends [(138%)($1,870)]
Taxable Capital Gains [(1/2)($1,320)]
Components of Net Income for Tax Purposes.
Net employment Income (Loss).
Net Business Income (Loss).
Net Property Income (Loss).
Capital Gains & Capital Losses.
Other sources of Income.
Other Deductions from Income.