With respect to the filing of an individual income tax return, which of the following state- ments is correct?
A)An individual is required to file an income tax return if their only source of income is business income, even if no tax is payable.
B)An individual is required to file an income tax return if they have reached the age of 18 by the end of the year.
C)If an individual has disposed of a capital property during the year, they are required to file an income tax return, even if no tax is payable.
D)An individual is not required to file an income tax return if no tax is payable for the year.

Question

Quizplus · Accepted Answer

If an individual has disposed of a capital property during the year, they are required to file an income tax return, even if no tax is payable. This is because the disposition of a capital property triggers a capital gains or losses, which need to be reported on the tax return. The other statements are incorrect. An individual is not required to file an income tax return if no tax is payable for the year, unless they meet other filing criteria such as capital gains or losses. An individual's age is generally irrelevant in determining whether they are required to file a tax return. Finally, having only business income does not necessarily trigger a filing requirement.

With Respect to the Filing of an Individual Income Tax