,CANADA ,CU/OMS #A & ,REV5UE ,AG5CY ,9COME ,TAX ,9T]PRET,N ,BULLET9 ,NUMB]3 ,,IT-#II;,R#E 7,3SOLIDAT$7 ,DATE3 ,SEE ,BULLET9 ,REVI.N SEC;N ,SUBJECT3 ,9COME ,TAX ,ACT ,LEGAL & ,A3.T+ ,FEES ,REF];E3 ,P>AGRAPH #AH7#A77A7 7AL SEC;NS #I & #BCI2 SUBSEC;NS #AC7#AB71 #BJ7#I71 & #DJ7#A72 P>AGRAPHS #F7#A77F71 #F7#A77J71 #H7#A77B7 & 7C71 #BJ7#A77B71 7E7 & 7CC71 #EF7#A77B71 7L7 & 7L4#A71 #FJ7O7 & 7O4#A7 &! DEF9I;NS ( 8CUMULATIVE ELIGI# CAPITAL0 & 8ELIGI# CAPITAL EXP5DITURE0 9 SUBSEC;N #AD7#E7 & 8EXEMPT 9COME10 8RETIR+ ALL[.E10 & 8SAL>Y OR WAGES0 9 SUBSEC;N #BDH7#A77 #A ,LATE/ ,REVI.NS--P>AGRAPHS A#A #AG & #AH ,AT ! ,CANADA ,CU/OMS & ,REV5UE ,AG5CY 7,,CCRA71 WE ISSUE 9COME TAX 9T]PRET,N BULLET9S 7,,IT'S7 9 ORD] 6PROVIDE TE*NICAL 9T]PRET,NS & POSI;NS REG>D+ C]TA9 PROVI.NS 3TA9$ 9 9COME TAX LAW4 ,DUE 6_! TE*NICAL NATURE1 ,,IT'S >E US$ PRIM>ILY 0\R /AFF1 TAX SPECIALI/S1 & O!R 9DIVIDUALS :O H AN 9T]E/ 9 TAX MATT]S4 ,= ^? R1D]S :O PREF] A LESS TE*NICAL EXPLAN,N (! LAW1 WE (F] O!R PUBLIC,NS1 S* Z TAX GUIDES & PAMPHLETS4 ,:ILE ! -;TS 9 A "PICUL> P>AGRAPH 9 AN ,,IT MAY RELATE 6PROVI.NS (! LAW 9 =CE AT ! "T !Y 7 MADE1 S* -;TS >E N A SUB/ITUTE =! LAW4 ,! R1D] %D1 "!=E1 3SID] S* -;TS 9 LI TAX,N YE> 2+ 3SID]$1 TAK+ 96A3.T ! E6ECT ( ANY RELEVANT AM5D;TS 6^? PROVI.NS OR RELEVANT C\RT DECI.NS O3URR+ AF ! DATE ON : ! -;TS 7 MADE4 #B ,,IT-#II;,R#E B#A ,SUBJECT 6! ABV1 AN 9T]PRET,N OR POSI;N 3TA9$ 9 AN ,,IT G5],Y APPLIES Z (! DATE ON : X 0 PUBLICIZ$1 UN.S O!RWISE SPECIFI$4 ,IF "! IS A SUBSEQU5T *ANGE 9 T 9T]PRET,N OR POSI;N &! *ANGE IS B5EFICIAL 6TAXPAY]S1 X IS USU,Y E6ECTIVE = FUTURE ASSESS;TS & REASSESS;TS4 ,IF1 ON ! O!R H&1 ! *ANGE IS N FAV\RA# 6TAXPAY]S1 X W NORM,Y 2 E6ECTIVE =! CURR5T & SUBSEQU5T TAX,N YE>S OR = TRANSAC;NS 5T]$ 96AF ! DATE ON : ! *ANGE IS PUBLICIZ$4 ,IF Y H ANY -;TS REG>D+ MATT]S 4CUSS$ 9 AN ,,IT1 PL1SE S5D !M TO3 ,DIRECTOR1 ,BUSI;S & ,PUBLIC,NS ,DIVI.N ,9COME ,TAX ,RUL+S ,DIRECTORATE ,POLICY & ,LEGISL,N ,BRAN* ,CANADA ,CU/OMS & ,REV5UE ,AG5CY ,OTTAWA ,,ON ,K#A;,A #J;,L#E #C ,,IT-#II;,R#E C#A ,AN (FICIAL V].N ( ? ,,IT W 2 AVAILA# ON \R ,9T]NET SITE AT3 _+WWW.CCRA-ADRC.GC.CA_: ,3T5TS ,APPLIC,N ,SUMM>Y ,4CUS.N & ,9T]PRET,N ,G5]AL ,DEDUCTIBIL;Y 7P>AGRAPHS #A-D7 ,F9ANC+ ,EXP5SES 7P>AGRAPH #E7 ,9COME ,TAX ,RETURNS 7P>AGRAPHS #F-H7 ,ADV.E ,9COME ,TAX ,RUL+S 7P>AGRAPHS #I-AJ7 ,EXP5SE ( ,REPRES5T,N 7P>AGRAPHS #AA-AC7 ,CAPITAL ,EXP5DITURES 7P>AGRAPH #AD7 ,ELIGI# ,CAPITAL ,EXP5DITURES 7P>AGRAPH #AE7 ,CORPORATE ,TAKE-OV]S 7P>AGRAPH #AF7 ,SUPPORT ,AM.TS 7P>AGRAPHS #AG-BA7 ,COLLEC;N ( ,SAL>Y & ,WAGES 7P>AGRAPHS #BB-BD7 #D ,,IT-#II;,R#E D#A ,RETIR+ ,ALL[.ES & ,P5.N ,B5EFITS 7P>AGRAPHS #BE-BG7 8,LEGAL0 ,FEES 9 ,P>AGRAPHS #H7#A77B7 & #FJ7O4#A7 7P>AGRAPH #BH7 ,EMPLOYEES ,SELL+ ,PROP]TY OR ,NEGOTIAT+ ,3TRACTS 7P>AGRAPH #BI7 ,LEGAL ,EXP5SES ( ,EMPLOYEES ,PD 0,EMPLOY]S 7P>AGRAPHS #CJ-CB7 ,CRIM9AL ,PROSECU;NS ,"U ,SEC;N #BCI 7P>AGRAPH #CC7 ,BULLET9 ,REVI.NS ,APPLIC,N ,? BULLET9 IS A 3SOLID,N (! FOLL[+2 --,,IT-#II;,R#E DAT$ ,DECEMB] #AA1 #AIIH2 & --SUBSEQU5T AM5D;TS "!TO4 ,= FUR!R "PICUL>S1 SEE ! 8,BULLET9 ,REVI.NS0 SEC;N NE> ! 5D ( ? BULLET94 #E ,SUMM>Y E#A ,? BULLET9 3TA9S A G5]AL 4CUS.N (! TR1T;T = TAX PURPOSES ( LEGAL & A3.T+ FEES4 ,! BULLET9 A4RESSES A NUMB] ( SPECIFIC SITU,NS & EXPLA9S :5 & H[ ^! FEES MAY 2 DEDUCT$ Z AN EXP5SE 9 E>N+ 9COME F A BUSI;S OR PROP]TY1 Z WELL Z F O!R S\RCES ( 9COME4 ,! LIMIT$ CIRCUM/.ES 9 : LEGAL & A3.T+ FEES MAY 2 DEDUCTI# F EMPLOY;T 9COME >E 4CUSS$1 Z IS ! TR1T;T ( LEGAL & A3.T+ FEES 9 C]TA9 CAPITAL TRANSAC;NS4 --------------------------------------#B ,4CUS.N & ,9T]PRET,N ,G5]AL ,DEDUCTIBIL;Y #A4 ,EXCEPT ": "! IS A SPECIFIC PROVI.N 9 ! ,ACT D1L+ ) LEGAL OR A3.T+ FEES1 S* Z P>AGRAPHS #H7#A77B7 OR #FJ;O4#A7 7SEE P>AGRAPHS #BB 6#BG 2L71 LEGAL & A3.T+ FEES >E DEDUCTI# ONLY 6! EXT5T T !Y #F ,,IT-#II;,R#E A#B 7A7 >E 9CURR$ =! PURPOSE ( GA9+ OR PRODUC+ 9COME F A BUSI;S OR PROP]TY1 & 7B7 >E N \TLAYS (A CAPITAL NATURE1 SEE P>AGRAPHS #AD 6#AF 2L4 #B4 ,G5],Y1 LEGAL & A3.T+ FEES >E ALL[A# DEDUC;NS ": !Y >E 9CURR$ 9 3NEC;N ) NORMAL ACTIVITIES1 TRANSAC;NS OR 3TRACTS 9CID5TAL OR NEC 6! E>N+ ( 9COME F A BUSI;S OR PROP]TY4 ,A DEDUC;N MAY "!=E 2 TAK5 = LEGAL & A3.T+ EXP5SES 9 3NEC;N )A BROAD RANGE ( R\T9E BUSI;S FUNC;NS1 S* Z 7A7 PREP>+ 3TRACTS 9 REL,N 6! SALE ( 9V5TORY1 7B7 OBTA9+ SECUR;Y =& COLLECT+ TRADE DEBTS [+1 7C7 PREP>+ F9ANCIAL RECORDS & M9UTES ( %>EHOLD]S' & DIRECTORS' MEET+S1 7D7 MAK+ ANNUAL CORPORATE FIL+S1 7E7 R\T9E OR REGUL> AUDITS ( F9ANCIAL /ATE;TS1 7F7 3DUCT+ APP1LS 9 RESPECT (1 = EXAMPLE1 SALES TAX 9CLUD+ ,GDS #G ,,IT-#II;,R#E B#B & ,S]VICES ,TAX/,H>MONIZ$ ,SALES ,TAX1 EXCISE1 MUNICIPAL1 OR PROP]TY TAXES1 & 7G7 WAT*+ LEGISL,N 79CLUD+ CU/OMS & O!R REGUL,NS7 A6ECT+ ! BUSI;S OP],NS (! TAXPAY]4 ,SEE P>AGRAPHS #F 6#H 2L = -;TS ON LEGAL & A3.T+ FEES 9 3NEC;N ) 9COME & O!R TAXES & GOV]N;T LEVIES4 #C4 ,9 LIMIT$ CIRCUM/.ES1 LEGAL FEES H BE5 HELD 6BE DEDUCTI# ": !Y >E 9CURR$ 9 3NEC;N )! DEF;E 0A TAXPAY] AG/ A *>GE ( P]=M+ ILLEGAL AC;NS 9 ! OP],N (A BUSI;S OR 9 DEF;E (! "D-TO-"D ME?ODS ( C>RY+ ON BUSI;S4 ,SEE1 = EXAMPLE1 ! DECI.N (! ,EX*EQU] ,C\RT 9 ,ROLL& ,PAP] ,CO4 ,LTD4 V4 ,,MNR1 ,7#AIFJ7' ,,CTC #AEH1 #FJ ,,DTC #AJIE1 9 : LEGAL FEES 6DEF5D AG/ A SU3ESS;L PROSECU;N = ANTI-COMPETITIVE TRADE PRACTICES 7 ALL[$ Z A DEDUC;N4 ,9 EA* CASE1 ! ISSUE ( :E!R OR N A PAY;T ( FEES 6DEF5D AG/ CRIM9AL PROSECU;N C MEET ! 3DI;NS ( DEDUCTIBIL;Y SET #H ,,IT-#II;,R#E C#B \ 9 P>AGRAPH #A ABV IS A "Q ( FACT : DEP5DS ^U ! REL,N%IP (! 3DUCT 9 "Q 6! TAX-PAY]'S 9COME-E>N+ ACTIVITIES4 7,SEE AL ! -;TS 9 P>AGRAPH #CC 2L REG>D+ PROSECU;NS = TAX EVA.N47 #D4 ,LEGAL CO/S 6PROSECUTE OR 6DEF5D MO/ TORT1 3TRACT OR O!R CIVIL CLAIMS >IS+ 9 ! ORD9>Y C\RSE ( BUSI;S W G5],Y 2 DEDUCTI#4 ,SUBJECT 6! -;TS 9 P>AGRAPH #H 2L1 IF ! TAXPAY] IS SU3ESS;L 9 A LEGAL PROCE$+1 ! GROSS AM.T (! LEGAL FEES : >E O!RWISE DEDUCTI# M/ 2 REDUC$ 0ANY LEGAL CO/S AW>D$ 0! C\RT : >E RCVD 0! TAXPAY]4 ,! TR1T;T ( DAMAGES OR SETTLE;TS PD 0A TAXPAY] IS 4CUSS$ 9 ! CURR5T V].N ( ,,IT-#DFG1 ,DAMAGES1 ,SETTLE;TS & ,SIMIL> ,PAY;TS2 F9ES & P5ALTIES >E D1LT ) 9 ! CURR5T V].N ( ,,IT-#AJD1 ,DEDUCTIBIL;Y ( ,F9ES OR ,P5ALTIES4 #I ,F9ANC+ ,EXP5SES D#B #E4 ,LEGAL & A3.T+ FEES 9CURR$ 9 3NEC;N ) 7A7 ISSU+ BONDS1 DEB5TURES OR MORTGAGES1 7B7 BORR[+ M"OY = C]TA9 BUSI;S OR PROP]TY PURPOSES1 7C7 9CURR+ 9DEBT$;S T IS AN AM.T PAYA# = C]TA9 BUSI;S OR PROP]TY PURPOSES1 & 7D7 RES*$UL+ OR RE/RUCTUR+ A DEBT OBLIG,N MAY AL 2 DEDUCTI# )9 ! LIMIT,NS ( P>AGRAPH #BJ7#A77E74 ,! CURR5T V].N ( ,,IT-#CDA1 ,EXP5SES ( ,ISSU+ OR ,SELL+ ,%>ES1 ,UNITS 9 A ,TRU/1 ,9T]E/S 9 A ,"PN]%IP OR ,SYNDICATE & ,EXP5SES ( ,BORR[+ ,M"OY1 4CUSSES ? SUBJECT 9 M DETAIL4 #AJ ,9COME ,TAX ,RETURNS E#B #F4 ,R1SONA# FEES & EXP5SES 9CURR$ = ADVICE & ASSI/.E 9 PREP>+ & FIL+ ( RETURNS = 9COME TAX PURPOSES >E NORM,Y DEDUCTI# 0VIRTUE ( SEC;N #I & >E N LIMIT$ "U P>AGRAPH #AH7#A77A7 9 -PUT+ BUSI;S OR PROP]TY 9COME 6: S* TAX RETURNS RELATE4 ,A TAXPAY] :O IS EMPLOY$ 9 3NEC;N ) SELL+ PROP]TY OR NEGOTIAT+ 3TRACTS & :O IS 5TITL$ 6DEDUCT EXP5SES PURSUANT 6P>AGRAPH #H7#A77F7 7SEE ! CURR5T V].N ( ,,IT- #EBB1 ,VEHICLE1 ,TRAVEL & ,SALES ,EXP5SES ( ,EMPLOYEES71 MAY DEDUCT A R1SONA# AM.T PD DUR+ ! YE> 6-PLY )! REQUIRE;T 6FILE AN 9COME TAX RETURN4 #G4 ,"U P>AGRAPH #FJ7O71 ALL TAXPAY]S1 9CLUD+ ^? P]SONS :O REPORT 9COME F S\RCES O!R ?AN BUSI;S OR PROP]TY 7S* Z SAL>Y OR CAPITAL GA9S71 MAY DEDUCT FEES OR EXP5SES 9CURR$ & PD = ADVICE OR ASSI/.E 9 PREP>+1 9/ITUT+ OR PROSECUT+ AN OBJEC;N OR APP1L 9 RESPECT ( #AA ,,IT-#II;,R#E F#B 7A7 AN ASSESS;T ( TAX1 9T]E/ OR P5ALTIES "U ! ,9COME ,TAX ,ACT OR A SIMIL> PROV9CIAL LAW1 7B7 A DECI.N (! ,CANADA ,EMPLOY;T & ,IMMIGR,N ,-MIS.N1 ! ,CANADA ,EMPLOY;T & ,9SUR.E ,-MIS.N1 OR A BO>D ( REF]EES OR AN UMPIRE "U ! ,UNEMPLOY;T ,9SUR.E ,ACT OR ! ,EMPLOY;T ,9SUR.E ,ACT1 7C7 AN ASSESS;T ( 9COME TAX1 9T]E/ OR P5ALTIES LEVI$ 0A =EIGN GOV]N;T OR POLITICAL SUBDIVI.N "!(1 IF ! TAX IS ELIGI# =A =EIGN TAX CR$IT1 OR 7D7 AN ASSESS;T OR DECI.N "U ! ,CANADA ,P5.N ,PLAN OR A SIMIL> PROV9CIAL PLAN4 --------------------------------------#C ,A TAXPAY] MAY DEDUCT AM.TS EXP5D$ 9 3NEC;N ) LEGAL & A3.T+ FEES 9CURR$ = ADVICE & ASSI/.E 9 MAK+ REPRES5T,NS AF HAV+ BE5 9=M$ T ! TAX-PAY]'S 9COME OR TAX =A TAX,N YE> IS 6BE REVIEW$1 :E!R OR N A =MAL NOTICE ( OBJEC;N OR APP1L IS SUBSEQU5TLY FIL$4 #AB ,,IT-#II;,R#E A#C #H4 ,ANY CO/S AW>D$ OR REIMBURS$ 6A TAXPAY] 9 RESPECT ( EXP5SES DEDUCT$ OR DEDUCTI# "U P>AGRAPH #FJ7O7 M/ 2 9CLUD$ 9 9COME 0VIRTUE ( P>AGRAPH #EF7#A77L7 =! YE> 9 : ! AW>D 0 RCVD4 ,Z 9DICAT$ 9 P>AGRAPH #D ABV1 ": O!R LEGAL & A3.T+ EXP5SES 7 DEDUCT$ "U ! G5]AL PROVI.NS (! LAW1 ANY RECOV]Y ( S* EXP5SES W REDUCE ! EXP5SES ORIG9,Y ALL[$4 ,ADV.E ,9COME ,TAX ,RUL+S #I4 ,! CO/ ( ADV.E 9COME TAX RUL+S 9CLUDE ! FOLL[+3 7A7 ! CO/ ( PREP>+ AN ADV.E RUL+ REQUE/ LR 6,REV5UE ,CANADA1 9CLUD+ \-(-POCKET EXP5SES 6PREP>E A4I;NAL COPIES ( DOCU;TS1 7B7 ! CO/ ( ATT5D+ 9T]VIEWS ) RUL+S (FIC]S (! ,DE"P;T1 & 7C7 ,REV5UE ,CANADA'S *>GE =! RUL+4 #AC ,,IT-#II;,R#E B#C ,S* CO/S MAY 2 DEDUCTI# "U C]TA9 3DI;NS )9 ! PROVI.NS (! ,ACT4 ,": ! TRANSAC;NS PROPOS$ 9 ! ADV.E RUL+ REQUE/ >E ( AN 9COME NATURE1 ! CO/S MAY 2 DEDUCTI# 0VIRTUE ( SEC;N #I & >E N LIMIT$ "U P>AGRAPH #AH7#A77A71 PROVID$ T ! PROPOS$ TRANSAC;NS >E =! PURPOSE ( GA9+ OR PRODUC+ 9COME F A BUSI;S OR PROP]TY4 ,IF ! TRANSAC;NS PROPOS$ 9 ! ADV.E RUL+ REQUE/ >E (A CAPITAL NATURE1 ! ADV.E RUL+S CO/S MAY 2 DEDUCT$ )9 ! PROVI.NS ( P>AGRAPH #BJ7#A77CC7 7SEE P>AGRAPHS #AA 6#AC 2L71 PROVID$ ! PROPOS$ TRANSAC;NS RELATE 6A BUSI;S C>RI$ ON 0! TAXPAY]4 ,! CO/S ( OBTA9+ AN ADV.E RUL+ >E G5],Y A3EPT$ Z 2+ A CO/ RELAT$ 6! BUSI;S (A TAXPAY] EV5 ?\< "! MAY 2 "S >GU;T T ! PROPOS$ TRANSAC;NS !MVS D N RELATE 6A "PICUL> BUSI;S C>RI$ ON 0! TAXPAY]4 ,= EXAMPLE1 AN ADV.E RUL+ MAY 9VOLVE ! 9CORPOR,N (A NEW SUBSIDI>Y CORPOR,N OR AN E/ATE FREEZE : #AD ,,IT-#II;,R#E C#C 9VOLVES A NEW CORPOR,N4 ,! CO/S ( S* A RUL+ WD G5],Y 2 DEDUCTI# "U P>AGRAPH #BJ7#A77CC74 #AJ4 ,! CO/ ( ADV.E RUL+S Z DESCRIB$ 9 P>AGRAPH #I ABV D N 9CLUDE 8TRANSAC;N CO/S0 : WD H BE5 9CURR$ :E!R OR N AN ADV.E RUL+ _H BE5 REQUE/$4 ,TRANSAC;N CO/S 9CLUDE 7A7 ! FEES ( LEGAL1 A3.T+ & O!R 3SULTANTS RELAT+ 6! /RUCTUR+ (! TRANSAC;NS1 7B7 ! CO/ ( NEGOTIAT+ 3TRACTS1 & 7C7 ! CO/ ( OBTA9+ LRS PAT5T1 SUPPLE;T>Y LRS PAT5T1 AM5D;TS 6!M1 ETC4 ,! DEDUCTIBIL;Y ( TRANSAC;N CO/S W DEP5D ON ! NATURE (! "ULY+ TRANSAC;NS 7Z 9COME OR CAPITAL7 &! APPLICABIL;Y (! PROVI.NS ( P>AGRAPHS #AH7#A77A71 #AH7#A77B71 #BJ7#A77E71 OR #BJ7#A77CC71 OR ! DEF9I;N ( 8ELIGI# CAPITAL EXP5DITURE0 9 SUBSEC;N #AD7#E71 Z ! CASE MAY BE4 #AE ,EXP5SE ( ,REPRES5T,N D#C #AA4 ,P>AGRAPH #BJ7#A77CC7 ALL[S A DEDUC;N 6A TAXPAY] = C]TA9 EXP5DITURES1 G5],Y (A CAPITAL NATURE1 9CURR$ & PD 9 MAK+ ANY REPRES5T,N RELAT+ 6A BUSI;S C>RI$ ON 0! TAXPAY] 79CLUD+ ANY REPRES5T,N MADE =! PURPOSE ( OBTA9+ A LIC;E1 P]MIT1 FRAN*ISE1 PAT5T1 OR TRADEM>K7 6A GOV]N;T OR PUBLIC BODY OR 6A REGULATORY AG5CY "!(4 ,EXP5SES ( LITIG,N >E N ALL[A# DEDUC;NS "U ? P>AGRAPH S9CE A C\RT ( LAW DOES N =M "P (A GOV]N;T1 NOR IS X A PUBLIC BODY P]=M+ ! FUNC;N (A GOV]N;T4 ,AL N DEDUCTI# >E EXP5SES 9CURR$ 79CLUD+ LEGAL FEES7 6NEGOTIATE )1 = EXAMPLE1 A MANUFACTUR] = AN EXCLUSIVE "R OR LIC;E 6H&LE ! MANUFACTUR]'S PRODUCTS 9 A SPECIFI$ T]RITORY4 ,S9CE A REPRES5T,N M/ 2 RELAT$ 6A BUSI;S C>RI$ ON 0! TAXPAY]1 AN EXP5SE 9CURR$ PRIOR 6! TAX,N YE> 9 : ! TAXPAY] -M;ED BUSI;S OP],NS IS N DEDUCTI# "U P>AGRAPH #AF ,,IT-#II;,R#E E#C #BJ7#A77CC74 ,A 4CUS.N ( :5 A BUSI;S -M;ES IS 3TA9$ 9 ! CURR5T V].N ( ,,IT- #CFD1 ,-M;E;T ( ,BUSI;S ,OP],NS4 #AB4 ,PURSUANT 6SUBSEC;N #BJ7#I71 A TAXPAY] :O IS 5TITL$ 6DEDUCT AN AM.T "U P>AGRAPH #BJ7#A77CC7 MAY 9 LIEU ( T DEDUC;N ELECT 9 ! MANN] PRESCRIB$ 9 ,"P ,,XLI (! ,9COME ,TAX ,REGUL,NS 6DEDUCT "O T5? (! AM.T 9 EA* (! T5 3SECUTIVE YE>S 2G9N+ )! YE> 9 : ! EXP5DITURE IS MADE4 #AC4 ,": A DEDUC;N "U P>AGRAPH #BJ7#A77CC7 OR SUBSEC;N #BJ7#I7 IS TAK5 &! CO/ ( REPRES5T,N IS ON A3.T (! CAPITAL CO/ ( DEPRECIA# PROP]TY1 SUBSEC;N #AC7#AB7 DEEMS ! AM.T 6H BE5 DEDUCT$ Z CAPITAL CO/ ALL[.E4 ,! E6ECT ( ? DEEM+ PROVI.N IS 6R5D] ANY AM.T S DEDUCT$ "U P>AGRAPH #BJ7#A77CC7 OR SUBSEC;N #BJ7#I7 LIA# 6RECAPTURE 9 ! EV5T (A SUBSEQU5T SALE (! PROP]TY4 #AG ,CAPITAL ,EXP5DITURES F#C #AD4 ,LEGAL & A3.T+ FEES 9CURR$ ON ! ACQUISI;N ( CAPITAL PROP]TY >E NORM,Y 9CLUD$ Z "P (! CO/ (! PROP]TY4 ,9 ! CASE ( DEPRECIA# PROP]TY1 ! CLAIM = CAPITAL CO/ ALL[.E IS BAS$ ON ! TOTAL CAPITAL CO/ 9CLUD+ S* FEES4 ,PURSUANT 6SUBSEC;N #DJ7#A71 ANY \TLAY OR EXP5SE 79CLUD+ LEGAL OR A3.T+ FEES7 9CURR$ =! PURPOSE ( MAK+ ! 4POSI;N (A PROP]TY IS A4$ 6! ADJU/$ CO/ BASE (! PROP]TY 9 CALCULAT+ ! AM.T (! CAPITAL GA91 CAPITAL LOSS1 T]M9AL LOSS OR BUSI;S 9VE/;T LOSS1 Z ! CASE MAY BE1 >IS+ F ! 4POSI;N4 --------------------------------------#D ,ELIGI# ,CAPITAL ,EXP5DITURES #AE4 ,LEGAL & A3.T+ FEES T >E 8ELIGI# CAPITAL EXP5DITURES0 )9 ! M1N+ ( T T]M 9 SUBSEC;N #AD7#E7 >E 9CLUD$ 9 ! 8CUMULATIVE ELIGI# CAPITAL10 (! TAXPAY] 9 ! MANN] PROVID$ 9 SUBSEC;N #AD7#E7 7SEE ! CURR5T V].N ( #AH ,,IT-#II;,R#E A#D ,,IT-#ADC1 ,M1N+ ( ,ELIGI# ,CAPITAL ,EXP5DITURE74 ,A DEDUC;N 9 RESPECT ( S* EXP5DITURES IS ALL[$ "U P>AGRAPH #BJ7#A77B74 ,LEGAL & A3.T+ FEES DIRECTLY ASSOCIAT$ )! PUR*ASE ( GDWILL QUALIFY Z ELIGI# CAPITAL EXP5DITURES4 ,":1 H["E1 AN EXP5DITURE IS DEDUCTI# "U "S PROVI.N (! ,ACT O!R ?AN P>AGRAPH #BJ7#A77B7 OR IS A4$ 6! CO/ ( PROP]TY 7SEE P>AGRAPH #AD ABV71 X DOES N QUALIFY Z AN ELIGI# CAPITAL EXP5DITURE4 ,CORPORATE ,TAKE-OV]S #AF4 ,LEGAL & A3.T+ CO/S 9CURR$ 6FIE N DEDUCTI# Z CURR5T EXP5SES OR Z ELIGI# CAPITAL EXP5DITURES4 ,S* CO/S RELATE 6! [N]%IP (! %>ES !MVS 7T IS1 ! CAPITAL /RUCTURE (! CORPOR,N7 & >E N LAID \ =! PURPOSE ( GA9+ OR PRODUC+ 9COME F A BUSI;S4 ,LEGAL & A3.T+ CO/S 9CURR$ 9 SU3ESS;L CORPORATE #AI ,,IT-#II;,R#E B#D ACQUISI;NS W G5],Y 2 CAPITAL EXP5DITURES : MAY 2 A4$ 6! CO/ BASE (! %>ES ACQUIR$4 ,! TR1T;T ( LEGAL & A3.T+ FEES 9 ! CASE ( ABORTIVE ATTEMPTS 6ACQUIRE %>ES IS 4CUSS$ 9 ! CURR5T V].N ( ,,IT-#ADC1 ,M1N+ ( ,ELIGI# ,CAPITAL ,EXP5DITURE4 ,T BULLET9 AL D1LS )! LEGAL & A3.T+ EXP5SES ( 9CORPOR,N1 REORGANIZ,N & AMALGAM,N4 ,SUPPORT ,AM.TS #AG4 ,LEGAL CO/S 9CURR$ 9 E/ABLI%+ ! "R 6SP\SAL SUPPORT AM.TS1 S* Z ! CO/S ( OBTA9+ A DIVORCE1 A SUPPORT ORD] = SP\SAL SUPPORT "U ! ,DIVORCE ,ACT OR A SEP>,N AGREE;T1 >E N DEDUCTI# Z ^! CO/S >E ON A3.T ( CAPITAL OR >E P]SONAL OR LIV+ EXP5SES4 ,H["E1 S9CE *N H A PREEXI/+ "R1 >IS+ F LEGISL,N1 6SUPPORT OR MA9T5.E1 LEGAL CO/S 6OBTA9 AN ORD] = * SUPPORT >E DEDUCTI#4 ,LEGAL CO/S ( SEEK+ 6OBTA9 AN #BJ ,,IT-#II;,R#E C#D 9CR1SE 9 SP\SAL OR * SUPPORT1 OR 6MAKE * SUPPORT NON TAXA# "U ! ,F$]AL ,* ,SUPPORT ,GUIDEL9ES1 >E NONDEDUCTI#4 #AH4 ,LEGAL CO/S 9CURR$ 65=CE PREEXI/+ "RS 69T]IM OR P]MAN5T SUPPORT AM.TS >E DEDUCTI#4 ,A PREEXI/+ "R 6A SUPPORT AM.T C >ISE F A WRITT5 AGREE;T1 A C\RT ORD] OR LEGISL,N S* Z SEC;NS #AA & #AE.A (! ,DIVORCE ,ACT ) RESPECT 6* SUPPORT1 OR ,"P ,,III (! ,FAMILY ,LAW ,ACT ( ,ONT>IO1 & 5=C+ S* A "R DOES N CR1TE OR E/ABLI% A NEW "R2 SEE ,! ,QUE5 V4 ,BURGESS1 ,7#AIHA7' ,,CTC #BEH1 #HA ,,DTC #EAIB 7,F4,C4,T4,D474 ,9 A4I;N1 LEGAL EXP5SES 9CURR$ 6DEF5D AG/ ! REDUC;N ( SUPPORT PAY;TS >E DEDUCTI# S9CE ! EXP5SES D N CR1TE ANY NEW "RS 69COME2 SEE ,! ,ATTORNEY ,G5]AL ( ,CANADA V4 ,NORMA ,MC,CR1DY ,SEMB9ELLI1 ,7#AIID7' #B ,,CTC #CGH1 #ID ,,DTC #FFCF 7,,FCA474 #AI4 ,! LEGAL CO/S DESCRIB$ 9 P>AGRAPH #AH ABV >E DEDUCTI# EV5 ?\< AN AM.T RCVD Z A 8* SUPPORT AM.T10 Z #BA ,,IT-#II;,R#E D#D DESCRIB$ 9 SUBSEC;N #EF.A7#D71 IS N 9CLUD$ 9 ! 9COME (! RECIPI5T4 ,:ILE 8EXEMPT 9COME0 9 SUBSEC;N #BDH7#A7 IS DEF9$ Z PROP]TY RCVD OR ACQUIR$ T IS N 9CLUD$ 9 9COME1 ! DEF9I;N EXCLUDES 8SUPPORT AM.TS02 "!=E1 ! DEDUC;N ( CO/S 9CURR$ 9 RESPECT ( SUPPORT AM.TS IS N D5I$ 0VIRTUE ( P>AGRAPH #AH7#A77C7 Z 2+ EXEMPT 9COME4 ,=A 4CUS.N ( 8SUPPORT AM.T0 & 8* SUPPORT AM.T10 SEE ! CURR5T V].N ( ,,IT-#ECJ1 ,SUPPORT ,PAY;TS4 #BJ4 ,A P]SON :O 9CURS LEGAL EXP5SES IS N 5TITL$ 6DEDUCT !M :5 !Y >E 9CURR$ 9 3NEC;N )! RECEIPT (A LUMP SUM PAY;T : _C 2 ID5TIFI$ Z 2+ A PAY;T 9 RESPECT (A NUMB] ( P]IODIC PAY;TS ( SUPPORT AM.TS T 7 9 >RE>S4 ,! LUMP SUM PAY;T H["E IS G5],Y N REQUIR$ 6BE 9CLUD$ 9 9COME4 #BA4 ,F ! PAY]'S /&PO9T1 LEGAL CO/S 9CURR$ 9 NEGOTIAT+ OR 3TE/+ AN APPLIC,N = SUPPORT PAY;TS >E N DEDUCTI# S9CE ^! CO/S >E P]SONAL #BB ,,IT-#II;,R#E E#D OR LIV+ EXP5SES4 ,SIMIL>LY1 LEGAL CO/S 9CURR$ =! PURPOSE ( T]M9AT+ OR REDUC+ ! AM.T ( SUPPORT PAY;TS >E N DEDUCTI# S9CE SU3ESS 9 S* AN AC;N DOES N PRODUCE 9COME F A BUSI;S OR PROP]TY4 ,LEGAL EXP5SES RELAT+ 6OBTA9+ CU/ODY ( OR VISIT,N "RS 6*N >E AL NONDEDUCTI#4 ,COLLEC;N ( ,SAL>Y & ,WAGES #BB4 ,P>AGRAPH #H7#A77B7 P]MITS A DEDUC;N 9 -PUT+ 9COME F AN (FICE OR EMPLOY;T1 = LEGAL EXP5SES PD 0A TAXPAY] 9 ! YE> 6COLLECT OR 6E/ABLI% A "R 6SAL>Y OR WAGES [$ 0AN EMPLOY] OR =M] EMPLOY]4 ,P>AGRAPH #F7#A77J7 REQUIRES A TAXPAY] 69CLUDE 9 9COME ANY AW>D OR REIMBURSE;T RCVD 9 RESPECT ( AM.TS = : A DEDUC;N "U P>AGRAPH #H7#A77B7 IS AVAILA#4 ,^! AM.TS M/ 2 9CLUD$ 9 9COME 6! EXT5T T !Y >E N O!RWISE S 9CLUD$ OR TAK5 96A3.T 9 -PUT+ ! AM.T DEDUCT$ "U SUBSEC;N #H7#A74 #BC ,,IT-#II;,R#E F#D #BC4 ,A DEDUC;N "U P>AGRAPH #H7#A77B7 IS ALL[$ ONLY 9 RESPECT ( AN AM.T 8[$0 0AN EMPLOY] OR A =M] EMPLOY]4 ,IF ! TAXPAY] IS N SU3ESS;L 9 C\RT OR O!RWISE FAILS 6E/ABLI% T "S AM.T IS [$1 NO DEDUC;N = EXP5SES IS ALL[$4 ,H["E1 FAILURE 6COLLECT AN AM.T E/ABLI%$ Z [$ 6! TAXPAY] DOES N PRECLUDE A DEDUC;N "U ? P>AGRAPH4 ,P5.N B5EFITS & RETIR+ ALL[.ES D N -E )9 ! DEF9I;N ( 8SAL>Y OR WAGES0 9 SUBSEC;N #BDH7#A72 LEGAL EXP5SES 9 RESPECT ( S* 9COME >E 4CUSS$ 9 P>AGRAPHS #BE 6#BG 2L4 #BD4 ,P>AGRAPH #H7#A77B7 DOES N P]MIT A DEDUC;N = LEGAL FEES PD 6OBTA9 B5EFITS "U A 8WAGE LOSS REPLACE;T PLAN0 Z DESCRIB$ 9 ! CURR5T V].N ( --------------------------------------#E ,,IT-#DBH1 ,WAGE ,LOSS ,REPLACE;T ,PLANS4 ,:ILE ! AM.T RCVD "U A WAGE LOSS REPLACE;T PLAN IS 9CLUD$ 9 9COME "U P>AGRAPH #F7#A77F7 & "!=E FALLS )9 ! DEF9I;N ( 8SAL>Y OR WAGES0 9 #BD ,,IT-#II;,R#E A#E SUBSEC;N #BDH7#A71 ! B5EFIT IS G5],Y RCVD F AN 9SUR] &! 9SUR] IS N ! 8EMPLOY] OR =M] EMPLOY]0 REF]R$ 6IN SUBSEC;N #H7#A77B74 ,RETIR+ ,ALL[.ES & ,P5.N ,B5EFITS #BE4 ,)9 ! LIMITS SET \ 9 P>AGRAPH #FJ7O4#A71 A TAXPAY] MAY DEDUCT LEGAL EXP5SES PD 6COLLECT OR E/ABLI% A "R 6A P5.N B5EFIT OR RETIR+ ALL[.E4 ,! T]M 8RETIR+ ALL[.E0 IS DEF9$ 9 SUBSEC;N #BDH7#A7 & IS BROAD 5 69CLUDE DAMAGES OR SETTLE;TS = WR;G;L 4MISSAL (! TAXPAY] 7SEE AL ! CURR5T V].N ( ,,IT- #CCG1 ,RETIR+ ,ALL[.ES74 ,LEGAL FEES 6COLLECT OR 6E/ABLI% A "R 6A P5.N B5EFIT OR RETIR+ ALL[.E (A DEC1S$ 9DIVIDUAL >E AL ELIGI# EXP5SES "U P>AGRAPH #FJ7O4#A7 ": ! TAXPAY] :O MADE ! PAY;T & :O CLAIMS ! DEDUC;N 0 A DEP5DANT1 REL,N OR LEGAL REPRES5TATIVE (! DEC1S$4 ,ELIGI# LEGAL EXP5SES "U P>AGRAPH #FJ7O4#A7 D N 9CLUDE #BE ,,IT-#II;,R#E B#E LEGAL EXP5SES RELAT+ 6A DIVI.N OR SETTLE;T ( PROP]TY >IS+ \ (1 OR ON A BR1KD[N (1 A M>RIAGE4 ,0VIRTUE ( P>AGRAPH #BEB7#D77B71 ! BR1KD[N (A M>RIAGE 9CLUDES ! BR1KD[N (A 3JUGAL REL,N%IP 2T TWO "PIES DESCRIB$ Z SP\SES ( EA* O!R 9 P>AGRAPH #BEB7#D77A74 ,LEGAL FEES 9 RESPECT ( B5EFITS "U ! ,CANADA ,P5.N ,PLAN OR SIMIL> PROV9CIAL PLAN >E N ELIGI# "U P>AGRAPH #FJ7O4#A71 B A DEDUC;N = S* EXP5SES MAY 2 AVAILA# "U P>AGRAPH #FJ7O7 7SEE P>AGRAPHS #G & #H ABV74 #BF4 ,! AM.T (! ELIGI# LEGAL FEES PD T MAY 2 DEDUCT$ "U P>AGRAPH #FJ7O4#A7 IS LIMIT$ 6! FOLL[+ AM.T3 7A7 ! AM.T ( ANY RETIR+ ALL[.E OR P5.N B5EFIT RELAT$ 6^? LEGAL FEES : IS RCVD & 9CLUD$ 9 ! TAX-PAY]'S 9COME =! YE> OR A PREVI\S YE>1 PLUS 7B7 ANY REIMBURSE;T ( LEGAL EXP5SES 9CLUD$ 9 ! TAX-PAY]'S 9COME "U P>AGRAPH #EF7#A77L4#A7 7SEE #BF ,,IT-#II;,R#E C#E P>AGRAPH #BG 2L7 =! YE> OR A PREC$+ YE>1 M9US 7C7 TRANSF]S 6A ,REGI/]$ ,P5.N ,PLAN OR ,REGI/]$ ,RETIRE;T ,SAV+S ,PLAN DEDUCT$ PURSUANT 6P>AGRAPHS #FJ7J71 7J4#JA71 7J4#A7 OR 7J4#B72 ? REDUC;N IS ONLY REQUIR$ 6BE MADE 6! EXT5T T ! AM.TS S TRANSF]R$ >E AM.TS = : LEGAL EXP5SES ELIGI# = DEDUC;N "U P>AGRAPH #FJ7O4#A7 7 9CURR$4 ,ONLY LEGAL FEES PD 9 3NEC;N )! 9COME DESCRIB$ ABV >E ELIGI# = DEDUC;N4 ,ANY O!RWISE ELIGI# LEGAL FEES : >E N DEDUCTI# 2C !Y EXCE$ S* 9COME MAY 2 C>RI$ =W>D & MAY 2 DEDUCT$ 9 ANY ( UP 6SEV5 SUBSEQU5T YE>S1 6! EXT5T T FUR!R RELAT$ 9COME >ISES & 6! EXT5T T ! AM.TS 9 "Q 7 N PREVI\SLY DEDUCTI#4 #BG4 ,"U P>AGRAPH #EF7#A77L4#A71 AM.TS RCVD 0! TAXPAY] Z AN AW>D OR REIMBURSE;T (! TYPES ( ELIGI# LEGAL EXP5SES DESCRIB$ 9 P>AGRAPHS #BE & #BF ABV M/ 2 9CLUD$ 9 9COME4 ,? #BG ,,IT-#II;,R#E D#E 9CLU.N 9 9COME MAY 2 (FSET 0! DEDUC;N AVAILA# "U P>AGRAPH #FJ7O4#A74 ,EXAMPLE ,9 #AIID1 ,MR4 ,SUP]ANNUATE 9CURR$ LEGAL EXP5SES ( 4#C1JJJ &1 9 #AIIE1 AN A4I;NAL 4#F1JJJ 9 AN ATTEMPT 6E/ABLI% A "R 6RCV A RETIR+ ALL[.E F 8 =M] EMPLOY]4 ,9 #AIIF1 HE 9CURR$ FUR!R LEGAL EXP5SES ( 4#A1JJJ 6E/ABLI% 8 "R 6& 6COLLECT A RETIR+ ALL[.E4 ,9 #AIIF1 ,MR4 ,SUP]ANNUATE'S =M] EMPLOY] PD HM A RETIR+ ALL[.E ( 4#AE1JJJ &A 4#G1EJJ REIMBURSE;T ( LEGAL EXP5SES & AGRE$ 6PAY HM FUR!R RETIR+ ALL[.ES ( 4#AJ1JJJ 9 #AIIG & 4#E1JJJ 9 #AIIH4 ,MR4 ,SUP]ANNUATE TRANSF]R$ ! 4#AE1JJJ RCVD 9 #AIIF 6HIS ,,RRSP4 ,9 #AIIG1 ,MR4 ,SUP]ANNUATE RCVD 4#AJ1JJJ "U ! AGREE;T ) 8 =M] EMPLOY] & HE TRANSF]R$ X 6HIS ,,RRSP4 #BH ,,IT-#II;,R#E E#E ,9 #AIIH1 ,MR4 ,SUP]ANNUATE RCVD ! F9AL 4#E1JJJ "U ! AGREE;T ) 8 =M] EMPLOY] & HE TRANSF]R$ 4#B1EJJ ( X 6HIS ,,RRSP4 ,9 #AIID OR #AIIE1 ,MR4 ,SUP]ANNUATE 0 N 5TITL$ 6DEDUCT ANY (! LEGAL EXP5SES T HE 9CURR$ 6E/ABLI% A "R 6A RETIR+ ALL[.E 2C HE _H N RCVD A REIMBURSE;T ( ^? LEGAL EXP5SES OR A RETIR+ ALL[.E 9 EI ( ^? YE>S4 ,9 #AIIF1 ,MR4 ,SUP]ANNUATE IS REQUIR$ 69CLUDE ! 4#G1EJJ REIMBURSE;T ( LEGAL EXP5SES 9 9COME PURSUANT 6P>AGRAPH #EF7#A77L4#A74 ,:ILE HE HAS 9CURR$ LEGAL EXP5SES ( 4#AJ1JJJ 9 E/ABLI%+ ! "R TO1 & COLLECT+ ! RETIR+ ALL[.E1 8 DEDUC;N "U P>AGRAPH #FJ7O4#A7 IS LIMIT$ 64#G1EJJ-! A7REGATE (! RETIR+ ALL[.E RCVD 9 ! YE> &! REIMBURSE;T ( LEGAL EXP5SES1 LESS ! AM.T TRANSF]R$ 6HIS ,,RRSP4 ,! 4#B1EJJ ( LEGAL EXP5SES T 7 N DEDUCTI# 9 #AIIF #BI ,,IT-#II;,R#E F#E MAY 2 C>RI$ =W>D & DEDUCT$ 9 LAT] YE>S 6! EXT5T T ,MR4 ,SUP]ANNUATE RCVS A FUR!R RETIR+ ALL[.E OR REIMBURSE;T ( LEGAL EXP5SES F 8 =M] EMPLOY] & 6! EXT5T T ^? PAY;TS C 2 ASSOCIAT$ )! LEGAL EXP5SES 9CURR$ 9 #AIID 6#AIIF4 ,9 #AIIG1 ,MR4 ,SUP]ANNUATE 0 UNA# 6DEDUCT ANY "P (! 4#B1EJJ 9 LEGAL EXP5SES T HE C>RI$ =W>D S9CE HE TRANSF]R$ ALL (! RETIR+ ALL[.E T HE RCVD 9 T YE> 96HIS ,,RRSP4 ,9 #AIIH1 PURSUANT 6P>AGRAPH #FJ7O4#A71 ,MR4 ,SUP]ANNUATE W 2 A# 6DEDUCT ! 4#B1EJJ ( LEGAL EXP5SES T HE C>RI$ =W>D S9CE HE TRANSF]R$ ONLY 4#B1EJJ (! RETIR+ ALL[.E T HE RCVD 9 T YE> 96HIS ,,RRSP4 #CJ 8,LEGAL0 ,FEES 9 ,P>AGRAPHS #F #H7#A77B7 & #FJ7O4#A7 #BH4 ,X IS N ALW NEC T ! FEES RELAT+ 6MATT]S DESCRIB$ 9 P>AGRAPHS #H7#A77B7 OR #FJ7O4#A7 2 PD 6A LAWY]4 ,= EXAMPLE1 AN EMPLOYEE ^: S]VICES >E 2+ T]M9AT$ CD OBTA9 ! S]VICES (A 3SULTANT 9 LAB\R REL,NS 6NEGOTIATE A S"E.E PACKAGE4 ,! FEES PD 6! 3SULTANT 9 T CASE W 2 A3EPT$ Z LEGAL FEES1 DEDUCTI# "U P>AGRAPH #H7#A77B7 OR #FJ7O4#A71 DEP5D+ ON ! CIRCUM/.ES4 ,EMPLOYEES ,SELL+ ,PROP]TY OR ,NEGOTIAT+ ,3TRACTS #BI4 ,AN EMPLOYEE :O IS 5TITL$ 6DEDUCT EXP5SES PURSUANT 6P>AGRAPH #H7#A77F7 7SEE ! CURR5T V].N ,,IT-#EBB1 ,VEHICLE1 ,TRAVEL & ,SALES ,EXP5SES ( ,EMPLOYEES7 MAY DEDUCT R1SONA# AM.TS PD DUR+ ! YE> 9 RESPECT ( LEGAL CO/S >IS+ F AN EV5T T 0XS NATURE IS A RISK NORM,Y 9CID5TAL 6! 9COME E>N+ #CA ,,IT-#II;,R#E A#F ACTIV;Y4 ,= EXAMPLE1 A R1L E/ATE AG5T MAY DEDUCT LEGAL FEES 9 A DEF;E AG/ *>GES ( MISREPRES5T,N 9 3NEC;N ) AN ABORT$ SALE ( PROP]TY4 ,! LEGAL EXP5SES WD N 2 DEDUCTI#1 H["E1 IF !Y 7 ( EI A CAPITAL OR P]SONAL NATURE4 ,AN \TLAY 9CURR$ 6PROTECT ! AG5T'S LIC;E 6E>N R1L E/ATE -MIS.NS & AN \TLAY DIRECTLY ATTRIBUTA# 6AN AUTOMOBILE A3ID5T : O3URR$ :ILE ! AUTOMOBILE 0 2+ US$ = P]SONAL PURPOSES >E EXAMPLES ( EXP5DITURES (A CAPITAL & P]SONAL NATURE1 RESPECTIVELY4 ,LEGAL ,EXP5SES ( ,EMPLOYEES ,PD 0,EMPLOY]S #CJ4 ,AN EMPLOY] MAY DEDUCT ! LEGAL EXP5SES 9CURR$ 9 DEF5D+ AN EMPLOYEE1 (FIC] OR DIRECTOR AG/ *>GES ( HAV+ -MITT$ AN ILLEGAL OR WR;G;L ACT 9 ! ORD9>Y C\RSE ( C>RY+ ON ! EMPLOY]'S BUSI;S4 ,? CD 9CLUDE EXP5SES 9CURR$ 9 REL,N 6ALLEG,NS ( (F;ES "U #CB ,,IT-#II;,R#E B#F BUSI;S PRACTICES OR -PETI;N LAW4 ,SEE = EXAMPLE1 ! CRIT]IA SET \ 9 ,! ,C> ,/RIP ,LTD4 V4 ,,MNR1 ,7#AIFG7' ,TAX ,A4,B4,C4 #CFA1 #FG ,,DTC #BEI &! DECI.N (! ,F$]AL ,C\RT1 ,TRIAL ,DIVI.N1 9 ,BORD] ,*EMICAL ,-PANY ,LTD4 V4 ,! ,QUE51 ,7#AIHG7' #B ,,CTC #AHC1 #HG ,,DTC #ECIA4 #CA4 ,AN EMPLOY] MAY DEDUCT PREMIUMS "U AN 9SUR.E POLICY : PROVIDES =! REIMBURSE;T ( LEGAL EXP5SES 9CURR$ 0(FIC]S OR DIRECTORS 9 DEF5D+ !MVS AG/ CLAIMS MADE AG/ !M 0R1SON ( _! POSI;NS )! EMPLOY]4 #CB4 ,": P]SONAL LEGAL EXP5SES ( AN EMPLOYEE 7OR ( 8 OR H] FAMILY7 >E PD OR REIMBURS$ 0! EMPLOY]1 ! AM.T PD IS A TAXA# B5EFIT 6! EMPLOYEE4 ,6! EXT5T T ! AM.T S PD DOES N EXCE$ A R1SONA# AM.T1 X W NORM,Y 2 DEDUCTI# 6! EMPLOY] Z A BUSI;S EXP5SE ON A3.T (! EMPLOYEE'S WAGES OR B5EFITS4 #CC ,CRIM9AL ,PROSECU;NS ,"U C#F ,SEC;N #BCI #CC4 ,LEGAL & A3.T+ FEES 9CURR$ 9 3NEC;N )A PROSECU;N "U SEC;N #BCI 7TAX EVA.N7 >E G5],Y N ALL[A# EXP5SES S9CE 9 MO/ CASES !Y >E N LAID \ 6E>N 9COME4 ,^! FEES >E N DEDUCTI# "U P>AGRAPH #FJ7O7 9ASM* Z ! 9=M,N LAID ) RESPECT 6! *>GE IS N AN ASSESS;T )9 ! M1N+ ( T P>AGRAPH4 ,PURSUANT 6! -;TS 9 ! CURR5T V].N ( ,,IT-#AJD1 ,DEDUCTIBIL;Y ( ,F9ES OR ,P5ALTIES1 ANY F9E 9 S* A SITU,N WD N 2 DEDUCTI# EI4 ,H["E1 9 LIMIT$ CIRCUM/.ES1 S* Z ^? 9 ,B5 ,MAT!WS & ,ASSOCIATES V4 ,,MNR1 ,7#AIHH7' #A ,,CTC #BCGB1 #HH ,,DTC #ABFB 7,T4,C4,C471 LEGAL & A3.T+ FEES 9CURR$ 6DEF5D AG/ A SEC;N #BCI PROSECU;N MAY 2 3SID]$ 6H BE5 LAID \ 6E>N 9COME4 ,^! EXP5SES MAY 2 ALL[A# DEDUC;NS ": !Y C 2 %[N 6RELATE 6! DEF;E ( PRACTICES : >ISE 9 ! NORMAL C\RSE (! TAX-PAY]'S 9COME-E>N+ ACTIVITIES1 S* Z ! MANN] ( #CD ,,IT-#II;,R#E D#F PREP>+ F9ANCIAL RECORDS1 PROVID$ T "! HAS BE5 FULL 4CLOSURE ( 9=M,N 0! TAXPAY]4 --------------------------------------#G ,BULLET9 ,REVI.NS ,P>AGRAPHS #A 6#AF & #AI 6#CC H N BE5 *ANG$ S9CE ! ISSU.E ( ,,IT-#II;,R#E DAT$ ,DECEMB] #AA1 #AIIH4 ,P>AGRAPHS #AG & #AH H BE5 REVIS$ 6CL>IFY T LEGAL FEES 9CURR$ 9 E/ABLI%+ ! "R 6SP\SAL SUPPORT "U ! ,DIVORCE ,ACT >E N DEDUCTI#4 ,= GRT] C]TA9TY1 ! ,CANADA ,CU/OMS & ,REV5UE ,AG5CY A3EPTS ! POSI;N T *N H A PREEXI/+ "R1 >IS+ F LEGISL,N1 6MA9T5.E REG>D.S ( :E!R ! SUPPORT IS OBTA9$ PURSUANT 6! ,DIVORCE ,ACT OR PROV9CIAL LEGISL,N4 ,7,DECEMB] #E1 #BJJJ7' #CE