Course Objective: Prepare 10 real client corporate tax returns from start to finish in any T2 tax software (TaxPrep, Profile, Cantax, etc.). Learn comprehensive tax planning for owner-manager CCPC small business and incorporated entities. The course includes very detailed full-length solutions.
Students are expected to prepare the T2 tax return in a tax software. We have included partial excel based solution to assist you in preparation of the T2 return. It includes applicable tax schedules and also demonstrates how the various tax schedules interact with each other.
Once you have attempted the case, we will provide a final copy of the client T2 tax return to compare with your solution. You can discuss your questions with the CPA Instructor.
Course Pre-requisite: Must have completed one of the following courses
LIMITED TIME OFFER: We will include free access to either TaxPrep T2 or Profile T2 - Step by Step Preparation course.
Case Study 1
Trump Holdings & Investment Inc.
Prepare a T2 return for Trump Holdings & Investment Inc. for December 31, 20XX, taxation year end.
Tax Topics covered:
Taxation of investment income including dividend income, capital gains, and interest income Planning relating paying out eligible and in-eligible dividends
Planning relating to RDTOH, Part IV Tax, and dividend refund
Planning relating paying out CDA dividends
Taxation of rental properties, CCA limitation, and expense deductibility
Utilization of Capital losses
CCA schedule and deduction
Case Study 2
Kraft Manufacturing Inc.
Prepare a T2 return for Kraft Manufacturing Inc. for September 30, 20XX, taxation year end.
Tax Topics covered:
Taxation of deferred revenue and reserves
Deductibility of bonuses, inventory allowance, and warranty provisions
Planning relating paying out dividends to the shareholder
Tax implications of disposition of capital assets; accounting gain vs. recapture for tax purposes Income splitting strategies
CCA schedule and deductions
Case Study 3
K&K Consulting Limited
Prepare a T2 return for K&K Consulting Limited for January 31, 20XX, taxation year end.
Tax Topics covered:
Consulting industry specific tax issues
Taxation of deferred revenue; advance deposits
Deductibility of certain accounting expenses such as contingent liabilities, life insurance Tax and legal implications of paying dividends from Negative Retained Earnings
Tax Instalments
Income splitting strategies
CCA schedule and deductions
Case Study 4
Toronto Bar & Grill Restaurant Inc.
Prepare a T2 return for Toronto Bar & Grill Restaurant Inc. for May 31, 20XX, taxation year end.
Tax Topics covered:
Restaurant Industry specific tax issues
Taxation of deferred revenue and reserves
Deductibility of inventory obsolescence and theft provisions; auto lease, life insurance Planning relating paying out dividends to the shareholder
Tax implications of disposition of capital assets; accounting gain vs. recapture for tax purposes Dividend strategies
CCA schedule and deductions
Case Study 5
Nike Canada Corporation
Prepare a T2 return for Nike Canada Corporation for March 31, 20XX taxation year end.
Tax Topics covered:
Utilization of tax losses planning
Application of Non-capital loss carry forward from prior three years to reduce current year income
Application of Capital loss carry forward
Deductibility of certain accounting expenses such as legal fees
CCA schedule and deduction
Allocation and sharing of small business deduction limit among associated corporations
Case Study 6
Dr. Bobby Medical Professional Corporation
Prepare a T2 return for Dr. Bobby Medical Professional Corporation for July 31, 20XX, taxation year end.
Tax Topics covered:
Medical Professional Corporation industry specific tax issues
Common income splitting strategies using a medical professional corporation
Salaries to family members and dividend sprinkling
Common share structure to allow for income splitting opportunities
Deductibility of certain accounting expenses such as donations, golf club fees, and staff events Tax implications of paying dividends to family members
CCA schedule and deductions
Case Study 7
AZ Barrister & Solicitor Professional Corporation
Prepare a T2 return for AZ Barrister & Solicitor Professional Corporation for December 31, 20XX, taxation year end.
Tax Topics covered:
Tax issues relating to a Law Practice
Taxation of Work-in-Progress
Deductibility of certain accounting expenses such as contingent liabilities, life insurance Planning relating paying out dividends to the shareholder
Income splitting strategies
Tax Instalments
CCA schedule and deductions
Case Study 8
IT Consulting Company
Prepare a T2 return for IT Consulting Company for June 31, 20XX, taxation year end.
Tax Topics covered:
Common tax issues relating to IT consulting businesses
Tax issues relating to a Personal Service Business (PSB)
Limitation of expense deductibility of a PSB
Tax issues relating to Small Business Deduction (SBD)
Deductibility of certain accounting expenses
Utilization of Capital losses
CCA schedule and deductions
Case Study 9
Family Holding Company
Prepare a T2 return for Family Holding Company for March 31, 20XX, taxation year end.
Tax Topics covered:
Taxation of income from a corporate partnership
Tax treatment of allowable business investment loss (ABIL)
Tax treatment of accounting impairment
Taxation of investment income including dividend income, capital gains, and interest income Planning relating to RDTOH, PartIV Tax, and dividend refund
Planning relating to paying out eligible and in-eligible dividends
Planning relating to paying out CDA dividends
Utilization of Capital losses
Case Study 10
SR&ED Credit Corporation
Prepare a T2 return for SR&ED Credit Corporation for December 31, 20XX, taxation year-end.
Tax Topics covered:
Taxation of SRED expenditures
How to prepare a basic SR&ED claim in the Tax return
Various components of SR&ED claim
Tax treatment of accounting gains and losses
Deductibility of certain accounting expenses
CCA schedule and deductions