| Right to the Source | Pursuit of Happiness | Sport Court | Affiliate the Rules | A Hodgepodge of Losses |
|---|---|---|---|---|
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What are a source, gains or losses, and legislated amounts?
Income or losses can come from these three broad categories.
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What is the continuity test?
Gifts, inheritances, and lotto winnings typically fail this test.
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What is the Kelly case (2005 DTC 324)?
In this case, the Court felt that although the taxpayer felt that his business was a marketing business, in reality it was his desire to drive a race car.
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What are the stop loss rules?
These were created to restrict fake, in-house, or paper losses.
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What is the first $2,500?
Section 31 will allow this loss amount to be deducted at 100%
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What is one's labour, capital or property either singularly or in combination
The source concept refers to the potential to generate a positive cash flow from an activity produced by one’s…
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What is the Stewart case?
This case challenged REOP.
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What is cessation of a business?
The Samson et Frères case focused primarily on this key issue.
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What is 251.1(1)?
This area of the Act defines affiliated persons or persons affiliated with each other.
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What is subsection 39(4)?
When a taxpayer makes an election under this subsection, all dispositions of Canadian Securities will be considered on account of capital
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What is the continuity notion?
This implies that an income earning activity happens over a period of time.
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What is is there a personal element to the activity?
This is the first major question an auditor should ask to determine pursuit of profit.
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What is the Miller case? (TCC 2001 DTC 136)
In this case, the taxpayer ran out of "ammo".
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What is the partnership agreement?
The primary document in determining a majority interest partner is this.
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What is an ABIL?
This incentive is treated as a regular capital loss and allows one-half of the loss to be deducted against any income.
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What is a non-productive source?
The inability to generate a positive return is often referred to as this.
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What is the taxpayer's intended course of action?
This is the most important of the Moldowan principles.
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What is the Gartry case? (1994 DTC 1947)
In this case, the judge stated, "“In my view the business had commenced and was well underway when the expenses in question were incurred. Interpretation bulletins are not the law and they should be referred to with some caution.”
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What is a disposition at a loss?
This is also known as the triggering event.
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What are superficial losses, redemption stop losses, dividend stop losses, and miscellaneous stop losses (list two only)
These are two of the stop loss provisions
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What is 4(1)(b)?
This area of the Act requires separate records be kept for each source.
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What is 18(1)(a) and 18(1)(h)?
These two paragraphs limit amounts claimed in a business to expenditures earned in income activities and deny personal expenditures.
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What is the Taylor case (the Taylor propositions)?
The outcome of this case showed that motive or intention should be given a stronger weighting but may not be enough on its own.
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What are corporations, partnerships, and trusts?
Subsection 40(3.3) states that the stop loss rules can only be applied to these…
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What is [A + B] - [D+D1+D2]?
Determining non-capital losses is defined by this formula.
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