Question
PLEASE HELP ME OUT WITH THESE TWO TAX QUESTION! i WILL RATE UP! 1. Each of Bob and Barb owns 50% of the issued and
PLEASE HELP ME OUT WITH THESE TWO TAX QUESTION! i WILL RATE UP!
1. Each of Bob and Barb owns 50% of the issued and outstanding Common Shares of Camp Grounds Inc. (CGI), which is a CCPC. CGI owns and operates a KOA campground franchise outside Thunder Bay, Ontario, which rents vacant land for use by arms length recreational-vehicle owners and tent campers on a nightly, weekly, monthly, or seasonal basis in exchange for a fee. CGI has two full-time employees, in addition to Bob and Barb, who perform daily cleaning, routine maintenance, general upkeep, and property management for the KOA campground franchise For the purposes of the Income Tax Act, what type of income does CGI realise in respect of its operation of this KOA campground? (2016 CPAO)
(a) Property income
(b) Specified investment business income
(c) Personal services business income
(d) Active business income
2. Claudio owns 100% of the issued and outstanding Common Shares of Continental Inn Ltd. (CIL), which is a CCPC. CIL owns and operates a motel located along the TransCanada Highway in White River, Ontario, which rents rooms to arms length individual travellers and tourists on a nightly or weekly basis in exchange for a fee. CIL has one full-time employee, in addition to Claudio, who performs check-ins, daily cleaning, and routine maintenance for the motel For the purposes of the Income Tax Act, what type of income does CIL realise in respect of its operation of this motel? (2017 CPAO)
(a) Property income
(b) Specified investment business income
(c) Personal services business income
(d) Active business income
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