ACTG 4710 Chapter Notes - Chapter 3: Tael, Advantageous, Tax Deduction

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

Document Summary

First source of income mentioned in act = employment income. Tp will include in net income for tax, taxable employment income allowable deductions. Employment income found in division b, part i, subdivision a of ita. 5: other income inclusions from employment (sec. Deductions: only those listed in act and relate to earning of employment income can be deducted (sec. Before determining net income from employment, must determine whether person is: employee or, self-employed contractor. Protection from severance, pension, and injury compensation rights. Treated as businesses and allowed to deduct all reasonable expenses incurred for purpose of gaining or producing income from business (excluding capital outlays such as cost of land + other fixed assets) May be required to pay own liability insurance a(cid:374)d (cid:449)ould(cid:374)"t ha(cid:448)e jo(cid:271) p(cid:396)ote(cid:272)tio(cid:374) Definition of employee not provided in act so must look at principles outlined by court to determine employment status as follows in table below. No one test or factor decisive in determining status.