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?

Choose the correct answer.

Question 22 options:

20 years

indefinitely

5 years

2 years

The primary goal of the income attribution rules within the ITA are to _________.

Question 23 options:

distribute the tax burden equally among members of an immediate family

reduce the possibility of double taxation on gains arising from the transfer of appreciated capital property

add additional scrutiny to transactions between corporations and their shareholders

avoid income splitting with a family member subject to a lower tax rate

Which of the following statements about the Home Buyers' Plan is correct?

Question 24 options:

A. The maximum withdrawal is $35,000 per individual (effective March 2019 & later).

B. All amounts must be repaid within 15 years of the year of withdrawal.

C. If contributions are made within 90 days of any Home Buyers Plan withdrawal, they cannot be deducted.

D. A qualifying home must be purchased in the year of withdrawal.

If elected by the pensioner, ________ of pension income can be split between the pensioner and his or her spouse or common law partner.

Choose the most appropriate response:

Question 25 options:

50%

up to $25,000

any amount up to 100%

any amount up to 50%

An allowable business investment loss (ABIL) is _____________ Question 37 options:

a special type of capital loss that can be deducted from any source of income

a special type of capital loss resulting from the disposition of shares or debt of a Canadian insurance corporation

equal to two-thirds of a business investment loss (BIL) as defined in ITA 39(1)(c)

a special type of capital loss that can only be deducted against taxable capital gains

Which of the following statements BEST describes an important tax planning opportunity with regard to loss carry overs? Question 38 options:

Loss carry overs should be used to reduce Taxable Income to zero so that personal tax credits can be applied to trigger a refund of taxes in the year.

Loss carry overs should not be used to reduce Taxable Income to zero as this prevents the application of personal tax credits.

As noncapital loss carry overs have an unlimited carry forward period, only net capital loss carry overs should be used to reduce Taxable Income to zero.

As personal tax credits have an unlimited carry forward period, loss carryovers should be used to reduce Taxable Income to nil.