Which of the following statements BEST describes an important tax planning opportunity with regard to loss carry overs? Question 5 options: 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. Loss carry overs should not be used to reduce Taxable Income to zero as this prevents the application of personal tax credits. 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.

Which of the following statements BEST describes an important tax planning opportunity with regard to loss carry overs? Question 5 options: 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. Loss carry overs should not be used to reduce Taxable Income to zero as this prevents the application of personal tax credits. 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.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter6: Accounting Periods And Other Taxes

Section: Chapter Questions

Problem 12MCQ

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The benefit of future deductible amounts can be achieved only if future income is sufficient to take advantage of the deferred deductions. For that reason, not all deferred tax assets will ultimately be realized. How is this possibility reflected in the way we recognize deferred tax assets?
Which of the following statements is correct? O a. A tax offset can result in a refund if it relates to franking credits. O b. Tax offsets are same as allowable deductions as both reduce assessable income. O c. Any tax offset can increase deductions. O d. Tax offsets are used to reduce your taxable income.
Where the carrying amount of an asset or liability is different from the tax base a ‘temporary difference’ can arise. Identify the correct statement pertaining to a temporary difference. Select one: a. A temporary difference only occur if the carrying amount of an asset or liability is the same as the tax base b. A temporary difference can never be taxable. c. A temporary difference can never be deductible for tax purposes. d. A temporary difference will result in a decrease (increase) in income tax payable (recoverable) in future periods when the carrying amount of the asset or liability is recovered or settled.
Which of the following are true about Deferred Tax Liabilities? (check all that apply) In the future, tax rules require bigger expenses than GAAP Initially, tax rules require smaller expenses than GAAP In the future, tax rules require smaller expenses than GAAP They represent an obligation to make higher tax payments in the future Initially, tax rules require bigger expenses than GAAP
Which of the following results to a deferred tax liability? When the carrying amount of an asset is lower than its tax base When the carrying amount of a liability is higher than its tax base When the accounting income is higher than taxable income because of a permanent difference All of the choices None of the choices
The key to reducing one's tax liability is to a. reduce taxable income b. reduce gross income
Please give answer for this question including a good working out. also , Ignore any tax loss carry back or carry plforward provisions.
Which is correct? a) The de minimis benefits not exceeding their thresholds are exempt from income tax. b) The de minimis benefits not exceeding their thresholds are subject to fringe benefit tax. c) The de minimis benefits not exceeding their thresholds are subject to regular tax. d) The de minimis benefits not exceeding their thresholds are deductions from gross income
Which of the folewing tax items is of most value in terms of lax savings to a taxpayer? Choose the correct answer. OA a $500 refundable credit against tax payable O B. a $500 non-capital loss carry forward OC a$500 non-refundable credit against lax payable D. a $500 deduction against net income for tax purposes
In a regressive tax system, as taxable income increases, the effective tax rate decreases ◻ True False
Indicate which of the following statements on the taxation of income from real estate under Personal Income Tax is correct: Income from real estate will be allocated to the general taxable base. Should this income be negative, it can be offset exclusively against capital gains in the savings taxable base. A 60% tax reduction on the net income is granted in any case. Income from real estate will be allocated to the savings taxable base. Which of the following types of income MUST NOT be allocated to the savings taxable base? Dividends from a quoted company O The payment of a public subsidy linked to the constitution of a start-up corporation project Income from the redemption of units in a collective investment undertaking Income from the transfer of a bond
6. There is no taxable income until such income is recognized. Taxable income is recognized when the (BEQ) a. taxpayer fails to include the income in his income tax retum. b. income has been actually received in money or its equivalent. income has been received, either actually or constructively. d. transaction that is the source of the income is consummated. CS Scanned with CamScanner