The Key to Reducing One's Tax Liability Is to Reduce

question 144

True/False

The key to reducing one's tax liability is to reduce taxable income rather than gross income.

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Definitions:

CCA Half-year Rule

A regulation in Canadian tax law allowing only half of the normal capital cost allowance deduction in the year of acquisition of a depreciable asset.

CRA

Canada Revenue Agency; responsible for administering tax laws for the Government of Canada and for most provinces and territories.

Depreciate

The process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Cash Flow From Assets

The total amount of money being transferred into and out of a business, especially affecting the operational activities involving its assets.