A stamp can be considered listed personal property.

True Or False

When an individual sells a capital asset and provides a warranty, the estimated cost of providing the warrantymustbe deducted as a capital loss in theyear of sale.

True OR False

A superficial loss occurs when a taxpayer disposes of a property and within the period of 90 days before the disposition or 90 days after the disposition, the taxpayer or their spouse acquires the same property.

True OR False

A rare manuscript can be considered listed personal property.

True OR False

The taxable amount of a capital gain is calculated as __________.

the proceeds realized on the sale of an asset less its adjusted cost base.

50% of the proceeds upon disposition of a capital asset

50% of the amount by which taxable capital gains exceed allowable capital losses

50% of the total capital gain

George owns a boat used for personal purposes. Assume George sells the boat for $32,000. When George sells the boat, ________.

any gain realized is a non-taxable capital gain, and any loss realized is not deductible

any gain realized is a taxable capital gain, and any loss realized is not deductible

any gain realized is a taxable capital gain, and any loss realized is an allowable capital loss

any gain realized is a non-taxable capital gain, and any loss realized is an allowable capital loss

Gains realized on the sale of real property _________.

are generally business income

are primarily realized due to currency inflation

can be capital gains or business income

are generally capital in nature

When a capital asset in the hands of a corporation has an adjusted cost base in an asset that is negative, the negative balance ________.

is treated as a capital loss and the adjusted cost base becomes nil

is treated as a terminal loss and the adjusted cost base becomes nil

is treated as capital gain and the adjusted cost base becomes nil

will increase the gain or reduce the loss on the asset upon disposition

If a taxpayer is unable to deduct the entire amount of allowable capital losses in a given tax year, how long can the unused amount be carried forward?

5 years

20 years

2 years

indefinitely

During the current year, Remy Greenfield disposes of two personal items. She sells a sailboat for $79000 that was originally purchased for $39000. She also sells an automobile for proceeds of $14000 that was originally purchased for 32000. What is the net taxable capital gain she must include in her division B income?

Ms. Jennie Smith owns a house in Ottawa. She purchased the house in 2007 for $125000. In June 2019, she sold the house for $235000 and designated the house as a principal residence for 3 years. Determine the minimumtaxablecapital gain that she must report on the 2019 sale of the house, after considering the principal residence exemption.

On January 1, 2019, Rollin Ltd. acquires real property at a cost of $6690000. Of this amount, $510000 represents the fair market value of the land. The building is new and will be used 100% for non-residential activity, none of which involves manufacturing, so it will go in a separate class 1 at a 6% CCA rate. This purchase is eligible for the accelerated investment incentive. In order to encourage Rollin's move to this location, the local government has given them $720000 to assist in the acquisition of the building. What is the maximum amount of CCA that Rollin can deduct on this building for its fiscal year ending December 31, 2019?

During the current year, Remy Greenfield disposes of two personal items. She sells an oil painting for $75000 that was originally purchased for $36000. She also sells a diamond necklace for proceeds of $15000 that was originally purchased for 34000. What is the net taxable capital gain she must include in her division B income?