Finance costs, costs incurred to acquire capital, are 100% deductible in the year the cost are incurred. True False > A method of accounting for income based on cash receipts and cash disbursements. > An asset that is held for the purpose of producing income. A method of accounting for income based on recording the assets when the right to receive the asset is established and liabilities when the obligation to pay the obligation occurs. 1. Capital Gain 2. Allowable Capital Cost The excess of the sum of the Adjusted Cost Base of a capital asset plus any costs of disposition over the proceeds resulting from the 3. Accrual Basis 2. Allowable Capital Cost The excess of the sum of the Adjusted Cost Base of a capital asset plus any costs of disposition over the proceeds resulting from the Disposition of the asset. 3. Accrual Basis 4. Capital Loss The deductible portion of a Capital Loss; currently one- half. If a reserve is deductible for accounting purposes the reserve is also permitted for tax purposes. True False Differences between ITA Business Income for tax purposes and GAAP Business Income ,ay be temporary or permanent True False Membership dues are never permitted as a deduction from business income, even when the Club is used 100% for business purposes. True False