MGAC50H3 Chapter Notes - Chapter 4: Property Income, Passive Income, Capital Gain
26 Sep 2017
School
Department
Course
Professor
Document Summary
Chapter 4 income from business: general concepts and rules: profit: calculation of income on sound commercial principles . Income or loss from a business or from property: purchasing and holding property to earn income, income earned while holding property reported as either. Income or loss from property: two transactions exist. Income or loss produced from disposition of property. Income attribution rules apply only to non-arms length transfer of property income and not to the transfer of business income: non-resident taxpayer taxed on income from business carried on in. Canada: corporation has business, principle purpose is to earn income from property, income considered inactive or passive unless corporation employs more than five full time employees. December: deduct last yeas estimate, profits from an illegal business, non-capital expenditures incurred to produce income from illegal business normally deductible, deduction of specified illegal payments prohibited.
