What Is a Profit-à-Prendre

question 23

Multiple Choice

What is a profit-à-prendre?

• A) a document that grants a person the right to remove something from another's real property
• B) a form of insurance obtained for losses caused by undiscovered defects in real property title
• C) a judicial proceeding where a certificate of title is awarded to the real owner to property
• D) a type of easement that grants a person the right to use another's land but disallows the usage of any personal property

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading the cost over its expected useful life.

Depreciation Tax Shield

A deduction that reduces taxable income due to the depreciation of assets, thereby lowering one's tax liability.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applied to income or profit.

CCA Class

Refers to the classification of depreciable properties under the Canadian Capital Cost Allowance system for tax purposes.