 Canadian Tax Principles (2021)
Preface
2021 Rates, Credits, and Other Data
Chapter 1 Introduction to Federal Taxation in Canada
Chapter 2 Procedures and Administration
Chapter 3 Income or Loss from an Office or Employment
Chapter 4 Taxable Income and Tax Payable for Individuals
Chapter 5 Capital Cost Allowance
 Chapter 6 Income or Loss from a Business
Introduction The Importance of a Business Defining a Business Business versus Income from Property Commencing a Business The Impact of a Personal Element The Source of Income Analysis Adventure or Concern in the Nature of Trade An Elective Option—ITA 39(4) Sources of Income and Categorizing Property Business Income and Loss—General Principles Overview What Is "Profit"? The 9-12-18-20 General Rule Business Income—Inclusions ITA 12 Amounts Receivable—ITA 12(1)(b) Amounts Received in Advance—ITA 12(1)(a) Quality of Income—ITA 9(1), 12(1)(a), and 12(1)(b) Reserves The General System Reserve for Doubtful and Bad Debts—ITA 20(1)(l) and 20(1)(p) Reserve for Certain Goods and Services—ITA 20(1)(m) Inventory Reserve for Unpaid Amounts—ITA 20(1)(n) Limitations on Deductions from Business and Property Income Expense Analysis Some Specific Limitations—ITA 18 Incurred to Produce Income—ITA 18(1)(a) Capital Expenditures—ITA 18(1)(b) Case Law Examples—Capital Expenditures Capital Expenditure Summary Personal and Living Expenses—ITA 18(1)(h) Recreational Facilities and Club Dues—ITA 18(1)(l) Safety Deposit Box Fees—ITA 18(1)(l.1) Political Contributions—ITA 18(1)(n) Lease Cancellation Payments—ITA 18(1)(q) Certain Automobile Expenses—ITA 18(1)(r) Payments under the ITA—ITA 18(1)(t) Interest and Property Taxes on Land—ITA 18(2) Soft Costs—ITA 18(3.1) Prepaid Expenses Business/Property Expenditure Analysis Flowchart—Example with Appraisal Costs Business Use-of-Home Expenses ("Work Space")—ITA 18(12) Foreign Media Advertising—ITA 19 and 19.1 Business Income—Specific Deductions Inventory—ITA 10 General Rule Overhead Absorption Income Tax vs. GAAP A Few Additional Comments on Inventory Valuation Some Specific Deductions—ITA 20 Other Limitations on Deductions from Business and Property Income—Subdivision f Introduction Reasonableness—ITA 67 Meals and Entertainment General Rules—ITA 67.1 Exceptions "Luxury" Automobile Costs Automobiles Owned by the Taxpayer Limits on CCA—ITA 13(7)(g) and (i) Limits on Interest—ITA 67.2 Automobile Leasing Costs—ITA 67.3 Basic Formula (Cumulative) Anti-Avoidance Formula Deductible Amount Example Leasing Property—Some Accounting versus Income Tax Issues Illegal Payments, Fines, and Penalties—ITA 67.5 and 67.6 Reconciliation Schedule Business Income—Example Example Data Example Analysis Taxation Year General Rules Non-incorporated Businesses—Fiscal Period Special Business Income Situations Income for Farmers Restricted Farm Losses—ITA 31 Professional Income (Work-in-Process [WIP]) The Problem Sale of a Business General Rules Inventories—ITA 23 Accounts Receivable—ITA 22 Election References Chapter 7 Income or Loss from Property
Chapter 8 Capital Gains and Capital Losses
Chapter 9 Other Income and Deductions, and Other Issues
Chapter 10 Retirement Savings and Other Special Income Arrangements
Chapter 11 Taxable Income and Tax Payable for Individuals Revisited
Chapter 12 Taxable Income and Tax Payable for Corporations
Chapter 13 Taxation of Corporate Investment Income
Chapter 14 Other Issues in Corporate Taxation
Chapter 15 Corporate Taxation and Management Decisions
Chapter 16 Rollovers Under Section 85
Chapter 17 Other Corporate Rollovers and Sale of a Corporate Business
Chapter 18 Partnerships
Chapter 19 Trusts and Estate Planning
Chapter 20 International Issues in Taxation
Chapter 21 GST/HST
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