A write down of a capital asset due to impairment

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Reference no: EM13313385 , Length: 2 page

Question 1: In Canada, a write down of a capital asset due to impairment will result in a reduction of net income for accounting purposes. However, is a write down of capital assets deductible for income tax purposes, or does it have to be added back to taxable income due the CCA recapture/terminal loss mechanism?

Question 2: For non resident retail corporations in Canada, is inventory considered taxable Canadian property? Furthermore, are shares of the company owned by Canadian residents considered taxable Canadian property?

Reference no: EM13313385

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