CPA Tax 2026/2027 | 200+ Questions & Answers | Personal & Corporate Tax, CCPC, CCA, Capital Gains, GST/HST & Section 85

This CPA Tax 2026/2027 study guide contains 200+ questions, answers, formulas, calculations, rules and applied tax scenarios covering a broad range of Canadian taxation topics relevant to CPA candidates. Across 77 pages, the document addresses personal income tax, employment and business income, corporate taxation, CCPCs, capital gains and losses, CCA, shareholder transactions, tax-deferred plans, residency, estate taxation, corporate reorganizations, GST/HST and tax administration. It is structured as a detailed question-and-answer revision resource, combining definitions with computational rules and practical tax treatments. The personal taxation and employment-income sections cover taxable employment income, employee versus independent-contractor status, taxable benefits, employee deductions, automobile standby charges and operating-cost benefits, employee loans, stock options, home-office expenses and commissioned salesperson deductions. The material also reviews personal filing deadlines, instalments, late-filing penalties, interest, Notices of Assessment, objections and the Tax Court appeal process. A substantial portion addresses business income and Capital Cost Allowance (CCA). Candidates review accounting-to-tax reconciliations, common add-backs and deductions, management bonuses, terminal losses, recapture and numerous CCA classes, including Classes 8, 10, 10.1, 12, 13, 14, 14.1, 43, 44, 50 and 53. The guide also covers passenger vehicles, leasehold improvements, limited-life intangibles, dispositions of land and buildings and the tax consequences arising when capital assets are sold. The capital gains and property taxation material covers superficial losses, capital-gains reserves, the principal residence exemption, personal-use property, listed personal property, replacement-property rules and capital-gain deferrals. Students also review allowable business investment losses (ABIL), non-capital losses, net capital losses, the lifetime capital gains deduction, Small Business Corporations (SBCs) and Qualified Small Business Corporation Shares (QSBCS). These sections connect capital transactions with loss utilization and small-business tax planning. Personal tax planning is extended through RRSPs, spousal RRSPs, the Home Buyers' Plan, Lifelong Learning Plan, TFSAs, RESPs, pension plans, Old Age Security, EI benefits, retiring allowances, death benefits, spousal and child support, moving expenses and childcare expenses. The document also examines income-attribution rules and transfers between spouses and related minors, including the interaction of attribution rules with Tax on Split Income (TOSI). The corporate taxation section provides detailed preparation on Canadian-Controlled Private Corporations (CCPCs), Active Business Income (ABI), Aggregate Investment Income (AII), the Small Business Deduction (SBD), General Rate Reduction (GRR), Additional Refundable Tax, refundable Part I tax, Capital Dividend Account (CDA), GRIP, Part IV tax and Refundable Dividend Tax on Hand (RDTOH). The guide further examines eligible and non-eligible dividends, dividend refunds, associated corporations, business-limit reductions and tax consequences when corporate assets or shares are sold. Estate and international tax concepts include spousal rollovers on death, deemed dispositions, transfers of depreciable and non-depreciable capital property, Canadian residency, primary and secondary residential ties and Canadian taxation of non-residents. The material distinguishes tax consequences where a taxpayer elects in or out of rollover treatment and considers Canadian-source employment, business income and taxable Canadian property. The later sections introduce important corporate reorganization and tax-planning provisions, including acquisition-of-control consequences and Section 85 rollovers under the Income Tax Act. Candidates review eligible property, elected transfer amounts, FMV limits, ACB and UCC considerations, non-share consideration, accrued losses and circumstances in which a Section 85 election may facilitate a tax-deferred transfer of assets to a taxable Canadian corporation. Finally, the document covers GST/HST, including registration requirements, taxable supplies, input tax credits (ITCs), place-of-supply considerations, zero-rated and exempt supplies, reporting periods, the Quick Method and the Simplified ITC Method. This gives candidates an integrated study resource spanning both income taxation and Canadian sales-tax concepts. Relevant students: This document is particularly relevant for CPA PEP taxation candidates, Canadian CPA students, accounting graduates, tax students, public accounting trainees, junior tax accountants, corporate tax students and candidates preparing for CPA taxation examinations or competency assessments. It is especially useful for learners who need comprehensive revision of Canadian personal and corporate income taxation, CCPC calculations, CCA, capital gains, tax-deferred savings plans, shareholder transactions, corporate reorganizations, estate taxation and GST/HST. Keywords: CPA Tax 2026, CPA Tax 2027, CPA Tax exam, CPA Tax questions and answers, CPA taxation study guide, CPA Canada Tax, CPA PEP Taxation, Canadian taxation exam, Canadian income tax, personal income tax, corporate income tax, CCPC, Canadian Controlled Private Corporation, small business deduction, SBD, active business income, ABI, aggregate investment income, AII, capital cost allowance, CCA, CCA classes, capital gains, capital losses, principal residence exemption, lifetime capital gains deduction, LCGE, QSBC shares, QSBCS, shareholder loan, TOSI, income attribution rules, employment income, taxable benefits, stock options, business income, RRSP, TFSA, RESP, Home Buyers Plan, tax credits, tax deductions, tax residency Canada, estate taxation, spousal rollover, Part I tax, Part IV tax, RDTOH, GRIP, capital dividend account, CDA, eligible dividends, non eligible dividends, Section 85 rollover, acquisition of control, GST HST, input tax credits, ITC, GST HST registration, CPA tax exam preparation