You obviously have an extensive knowledge of Canadian taxes.
When you purchase an eligible capital property such as goodwill, a franchise or a license that gives you an economic benefit for an unlimited period of time, reporting it on your income tax works the same way as Capital Cost Allowance.
You can't deduct the full amount you paid for an eligible capital property all at once. Instead, you deduct a certain amount of the eligible capital expenditure each year. The amount you are allowed to deduct is called an Annual Allowance.
This is the last question in the Canadian Tax Quiz. Hopefully working through this quiz has provided a good review for you of some of the tax rules that apply to people operating businesses in Canada. Thanks for playing!
If you are looking for more information on Canadian taxes and how they apply to small businesses, you'll find articles on topics ranging from income tax deductions and corporate tax through GST and PST in the Tax Information section of this Web site.
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