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Question $1$

For purposes of deducting child care costs, an eligible child who has a disability must be under $16$ at some time during the year.

True

False

Question $2$ Spousal support is deductible to the payor and taxable to the recipient.

True

False

Question $3$

At least a portion of child care costs incurred can be deducted by the higher income spouse when the lower income spouse is confined to prison for not less than two weeks in the year.

True

False

Question $4$

Workers' Compensation payments are included in Net Income For Tax Purposes, but deducted in the determination of Taxable Income.

True

False

Question $5$

Brian Lawson gives equity securities to his $15$ year old son. If the securities are sold, in the following year, for more than their fair market value at the time of the gift, the resulting capital gain will be taxed in the hands of Mr$.$ Lawson.

True

False

Question $6$

A father gives $$10,000$ in securities to his $19$ year old daughter who is living at home. Any dividends declared on the securities will be attributed to the father.

True

False

Question $7$

Under the rules set forth in ITA $69$ and ITA $73,$ a taxpayer engaging in a non$-$arm's length transaction with which of the following parties will not trigger double taxation on the gain realized on the ultimate disposition of the property?

a$)$the taxpayer's spouse or common law partner

b$)$any immediate family member of the taxpayer

c$)$a corporation controlled by the taxpayer

d$)$the taxpayer's parents by blood or adoption

Question $8$

Jack and his wife, Sally, separated during $2004.$ The written separation agreement requires Jack to make payments for the maintenance of Sally and their child. Payments were set at $$250$ per month for Sally and $$150$ per month for their child. During $2016$ Jack's payments totaled $$4,000.$ How much of the $2016$ payments can Jack deduct on his $2016$ personal tax return?

A$.$$$4,000.$

B$.$$$3,000.$

C$.$$$1,800.$

D$.$$$2,200.$

Question $9$

Which of the following is an advantage of TFSAs over RRSPs$?$

a$)$TFSAs have more qualified investment options

b$)$TFSA withdrawals do not affect OAS clawback

c$)$TFSA yield more after tax funds, given the same investment results

d$)$TFSA contributions result in an immediate tax savings

Question $10$

Charam and Baka each have income of over $$200,000.$ During the year, they paid a nanny $$20,000$ to care for their three children. Divya, age $5,$ has no income. Elina, age $10$ is disabled and eligible for the disability tax credit. Hinda is $12$ and has income of $$25,000$ which he earns from a TV acting job. What is the maximum deduction for child care costs for this family?

A$.$$$18,000$

B$.$$$19,000$

C$.$$$24,000$

D$.$$$22,000$

Question $11$

Which of the following statements regarding the Tax Free Savings Account $($TFSA$)$ is NOT correct?

A$.$Any Canadian resident individual over $17$ years of age can establish a TFSA.

B$.$Any unused amounts not contributed in a year may be carried forward indefinitely to future years.

C$.$The contributions are tax deductible up to a maximum of $$10,000$ per year.

D$.$Capital gains earned within TFSAs are not taxed.

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