ACTG 4710 Chapter Notes - Chapter 4: Life Insurance, Contingent Liability, Stock Transfer Agent

• School: York University
• Department: Accounting
• Course: ACTG 4710
• Professor: Beppino Pasquali

Document Summary

For tax purposes, income from business added to total income. Income comes from 3 sources for tax: employment, business, property. Subdivision b of division b of part i of ita. Contains primary tiles for computation of business income. There"s huge i(cid:374)tera(cid:272)tio(cid:374) (cid:271)et(cid:449)ee(cid:374) se(cid:272)tio(cid:374) (cid:1005)(cid:1012) a(cid:374)d (cid:1006)(cid:1004) Section 18 may disallow deduction but section 20 may allow it. Individuals may hold property for variety of reasons. When tp disposes of property, proceeds minus cost will result in either. When tp purchases and holds property to earn income, income earned will be reported as either: Thus, 2 separate types of transactions exist: income or loss produced from disposition of property, income or loss produced during ownership of property. Taxation treatment of business income vs. capital receipt. Capital receipts = partially taxed as capital gains: current rate is 50% Capital asset = tree which produces income in form of fruit. To make distinction between income and capital transaction.