MGAC50H3 Chapter Notes - Chapter 6: Income Property, Property Income, Basis Of Accounting
18 Nov 2017
School
Department
Course
Professor
Document Summary
Interest and loan at discount but redeemable at par. Interest income included at rate of 100%, capital gains included at. 50: factors considered when determining if discount or premium is interest or capital gain. Include amount determined by terms of lean agreement and price at which property is sold. Interest inclusion provision will apply to sale of property if contractual price exceeds fair market value of property. Interest on scholarship fund not taxable to parent or grandparent who establishes fund under resp legislation: no tax until paid out for benefit of child. Interest income reporting: corporations, partnerships, trusts, accrual method of accounting. Individual is earlier of: annual accrual based on anniversary date of investment contract, cash interest received. Payments in installments of sale of property but actually depending on use or production should be as property income: property, real and personal property.
