A business has $5,000 in Taxable Income before CCA in the current year. The management anticipates a high income for the subsequent year. The maximum CCA deductible for the year in Class 8 is $5,000 and the maximum CCA deductible for the year in Class 12 is $5,000. To minimize the subsequent year's taxes, the business should:

Question

Quizplus · Accepted Answer

By claiming maximum CCA on both Class 8 and Class 12, the business can reduce its taxable income to zero in the current year, thereby minimizing taxes in the subsequent year when income is anticipated to be high.

A Business Has $5,000 in Taxable Income Before CCA in the Current