Question

Which of the following groups of factors are used by the courts in order to determine a taxpayer's status as an employee or a self-employed contractor?

a.

intent, control, ownership of tools, number of hours worked per week

b.

intent, control, ownership of tools, opportunity for profit

c.

intent, ability to subcontract, the type of work being undertaken, ownership of tools

d.

intent, ability to subcontract, the location of the work site, opportunity for profit

Danielle is employed by a Canadian Corp. and uses her own car for employment activities. Which of the following may be claimed as an employment expense deduction?

a.

Auto insurance (personal related portion)

b.

Cost of the car (employment related portion)

c.

Repairs (employment related portion)

d.

Gas (personal related portion)

If an individual is required to make income tax instalments, one acceptable pattern of payments is to base each payment on one-quarter of the actual Tax Payable for the second preceding year.

a.

False

b.

True

For tax purposes, neither premium nor discount on long-term debt is ever amortized by the issuer as an adjustment of interest expense.

a.

False

b.

True

Which of the following statements regarding the tax treatment of a principal residence is NOT correct?

a.

A capital loss cannot be realized on the sale of a principal residence.

b.

If an individual and his spouse can each own real property in which they reside for a part of the year, they each can claim the principal residence exemption for that year on the property that they own.

c.

If a taxpayer owns only one residence, the principal residence formula will eliminate any capital gain on the sale.

d.

If a taxpayer owns two residences, the decision to designate a particular property as the principal residence must be made when the residence is sold.

The interest rate applicable on amount due to the government is 4 percentage above the prescribe rate.

a.

True

b.

False

Answer 1

1. Which of the following groups of factors are used by the courts in order to determine a taxpayer's status as an employee or a self-employed contractor?

Ans

b.

intent, control, ownership of tools, opportunity for profit

c.

intent, ability to subcontract, the type of work being undertaken, ownership of tools

2. Danielle is employed by a Canadian Corp. and uses her own car for employment activities. Which of the following may be claimed as an employment expense deduction?

Ans:

c. Repairs (employment related portion)

3. If an individual is required to make income tax instalments, one acceptable pattern of payments is to base each payment on one-quarter of the actual Tax Payable for the second preceding year.

Ans : a) False

4. For tax purposes, neither premium nor discount on long-term debt is ever amortized by the issuer as an adjustment of interest expense.

Ans : False

5. Which of the following statements regarding the tax treatment of a principal residence is NOT correct?

Ans:

b.

If an individual and his spouse can each own real property in which they reside for a part of the year, they each can claim the principal residence exemption for that year on the property that they own.

6. The interest rate applicable on amount due to the government is 4 percentage above the prescribe rate.

Ans: b. False

The Internal Revenue Service announced that interest rates on underpayments will remain the same at 5% for the calendar quarter beginning January 1, 2020. The rates will be: 5% for overpayments (4% in the case of a corporation);