The exam tips for Level 2 H&R Block

I am pretty sure, the lessons on Rental Income and Employment Expenses are tough. Yes, everything is tough till you actually start doing the returns. Then all of a sudden, you are an expert!!!
I wrote the Level 2 Exam on Friday and to tell you what, it was good. I was feeling so relieved and happy. It was so easy to remember what you learned in the class.

We know that, in the review problem at the end of the chapters were important. I am not making you bore.
First I will tell you about the Employment Expenses:
You know which are the expenses are claimable right?
First go to do the CCA. Figure out if it is a calss 10 vehicle or class 10.1 vehicle. If the price before taxes are over $30,000, it is a class 10.1 vehicle.
Mostly you will get a class 10 vehicle for the exam.
Then just follow the steps on the CCA. Check the question for any GST rebates received. If there is then the question will tell you what is related to part of the CCA claimed on the vehicle. Then your UCC on the form will be the (UCC at the beginning of the y(ear- the GST rebate part related to the vehicle). This is an important point to remember.

Now you are ready to do the Allowable Motor Vehicle expense.

You know what to add from the question: Like, Gas and fuel, maintenance,Auto Insurance, Licence and registration, etc.
Take the CCA from the column 7 of the CCA Schedule and write on line 9.
Calculate the line 14 amount. If there is any allowances related to the vehicle is not included in the income, (check for Box 40 of the T4), write on line 15.
Write the allowable motor vehicle expense on  Line 1. (ie. the number you got on line 16)
It is important to have the number on line 16, even though there is nothing on line 15.

For calculation of Work-spce at home, usually you can claim only the Utilities. Please, don't claim any mortgage inetrest, property tax etc. They are for commission employees only. If 10 % is the use for office, you write 90% for the personal use.
Remember, before writing the employment income, you need to consider the GST rebate.
Subtract the GST rebate on Vehicle from the Total GST rebate and add that to your amount on the Box 14 to get Your employment income. This is a part you can easily forget. So take note.

There may be given some expense related to meals. You need to know if the person is travelling out of the city for employment purposes. If not, don't claim it. (Just within the city, he has to go with lunch packed from home..... )

On the worksheet, check that you filled the all lines asking for Subtotal.
Now check your Review problem on page 69 to get more confidence.

Now, you may have a problem on Rental Income.

You can do the classes:
Start doing AREA B first.
Appliances are class 8.
If there is any unattached deck, it is class 8 too.That is in the review problem.
What if it is  attached? Then it is class 1, same as building. So that will go to Area C.
If the person purchased the land during the year, you need to do Area F. It is at the bottom of the page. Just do it. Double check to make sure you filled up that Area F.

Now you can calculate the Area A. If there is any Rental income, that is profit you get on line C of the first page of Statement of Rental income, claim the CCA. If the person is having loss, no CCA can be claimed.
You know that the claim is to bring the tax to zero. If there is already a loss, they cannot make further loss by claiming the CCA, right?
The car expenses cannot be claimed if it is used just to collect rent.
That is all I can remember.
Best of luck everybody.