1. Which of the following statements describes the treatment of losses in the aggregating formula?

Multiple Choice

• All losses, in all sections, are deductible against all sources of income.

• All losses are included in section 3(d).

• Losses in section 3(d) are deductible against all sources of income.

• Losses in section 3(b) are deductible against all sources of income.

2. Which of the following activities would not be considered a source of business income for an individual?

Multiple Choice

• Cutting the neighbours' lawns.

• Renting out the basement apartment of one's house.

• Watching over the neighbours pet while the neighbour is on vacation.

• Teaching piano to students, on a part-time basis.

3. Generally, income is considered passive if it is realized from

Multiple Choice

• Employment

• Business

• Property

• Capital gains

4. Which of the following factors is not relevant when the courts determine if an individual is a resident of Canada?

Multiple Choice

• Their Canadian citizenship status.

• The amount of time spent in Canada on a regular basis.

• Their social and financial ties to Canada.

• Their motivation for being in Canada.

Note- introduction to taxation