When Establishing Whether the Sale of an Asset Is Capital

question 7

Multiple Choice

When establishing whether the sale of an asset is capital income or business income,which of the following is not one of the factors that the courts take into consideration when determining the original intention of a transaction?

• A) Period of ownership
• B) Canadian securities test
• C) Number and frequency of transactions
• D) Relation of transaction to taxpayer's business

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Definitions:

Desired Outcome

The specific result or goal that an individual or organization aims to achieve through actions or interventions.

High Unemployment

A situation in an economy where the unemployment rate is significantly higher than the historical average.

High Inflation

High inflation is a condition where the general price level of goods and services in an economy rises rapidly over a period, eroding purchasing power.

U.S. Economy

The economic system of the United States characterized by a mixed economy with both private and public enterprises contributing to the gross domestic product (GDP).