Module 10B: Introduction to Woodlot - Income Tax and Estate Planning

Results

This person got 12 of 12 possible points.
Total score: 100 %

Question Results

Score 1 of 1

Question:

The manner in which a taxpayer operates a woodlot may determine the amount of income tax owing:

Response:

True

False

Score 1 of 1

Question:

Where a woodlot owner can clearly show that he/she expects to profit from operations on the woodlot, the woodlot is referred to as a non- commercial woodlot.

Response:

True

False

Score 1 of 1

Question:

A woodlot that is referred to as a commercial woodlot will have income treated as a capital gain.

Response:

True

False

Score 1 of 1

Question:

If you inherit a woodlot and make no attempt to operate it as a business, income received from timber sales is treated as business income.

Response:

True

False

Score 1 of 1

Question:

A woodlot owner who grows Christmas trees is in the farming business.

Response:

True

False

Score 1 of 1

Question:

If you have a woodlot that is used 60% personally, it is considered a non-commercial woodlot by CRA.

Response:

True

False

Score 1 of 1

Question:

Where a woodlot owner allows timber to be cut and payment is based on a price per unit, the payment received is considered to be a capital gain.

Response:

True

False

Score 1 of 1

Question:

As long as the woodlot is referred to as a commercial, woodlot losses may be realized year after year.

Response:

True

False

Score 1 of 1

Question:

Income from a commercial woodlot is to be reported when the wood is cut or shipped.

Response:

True

False

Score 1 of 1

Question:

If there are two names on the deed of  a woodlot, both of these individuals are the beneficial owners, and therefore automatically share the income from a harvest equally.

Response:

True

False

Score 1 of 1

Question:

Cindy purchased a woodlot in 2001 for $30,000. No harvesting has occurred since the purchase. In 2008 she sold the woodlot for $60,000 and there were legal fees of $3,000. What was the taxable capital gain?

Response:

$30,000

$17,000

$27,000

$13,500

Score 1 of 1

Question:

If Rachel sold her non-commercial woodlot for $70,000 in 2005 and she was going to receive $10,000 each year for the next seven years, how many years could she spread the capital gain over for tax purposes?

Response:

one

two

five

seven