Question

Question 1

Which of the following statements with respect to the Political Contributions tax credit is correct?

	The tax credit is calculated by multiplying the base amount by 15%.
	The tax credit is only available on contributions to a leadership contestant.
	Eligible contributions in excess of $1,275 do not generate additional tax credits.
	This tax credit is applicable to both individual and unincorporated associations.

Question 2

There is no limit on the amount of current year tuition fees tax credit that can be transferred to a spouse,

	True
	False

Question 3

Keigan is self-employed. He might be eligible for all of the following tax credits except for the:

	EI tax credit
	Canada Employment tax credit
	CPP tax credit
	All of the above

Question 4

Which of the following statements with respect to the Canada Caregiver Tax Credit is true?

	There is a requirement that the infirm dependent must live in the caregiver's home.
	In all cases the infirm dependent must be a resident of Canada.
	Only one credit will be available for each infirm dependent.
	If there is more than one caregiver, each caregiver will be entitled to the full credit.

Answer 1

Question 1

Which of the following statements with respect to the Political Contributions tax credit is correct?

C) Eligible contributions in excess of $1,275 do not generate additional tax credits.

Based on Canada Elections Act and the Income Tax Act, one can donate to registered political parties, nomination contests, leadership contestants, and independent candidates and claim generous tax credits (max credit $ 650). To encourage participation by many ordinary people, businesses and unions can no longer make political donations to federal political parties. Only individuals can make these donations to a maximum of $1,575 per year (in 2018).

The credit is:

• 75% of contribution up to $400,
• 50% of the next $350, and
• 33-1/3% of the last $525

Question 2

There is no limit on the amount of current year tuition fees tax credit that can be transferred to a spouse,

B) False – Iimit is $ 5000

Question 3

Keigan is self-employed. He might be eligible for all of the following tax credits except for the:

B) Canada Employment tax credit

The Canada Employment Credit, or CEC, is a non-refundable tax credit designed to help employees with work expenses like uniforms, home computers or supplies needed to perform their jobs. For 2013, the CEC has a ceiling of $1,117. Self-employed individuals are not eligible for this credit.

Question 4

Which of the following statements with respect to the Canada Caregiver Tax Credit is true?

C) Only one credit will be available for each infirm dependent.