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Self made RPP, DPSP, PRPP are not taxable = deduct.

Always add life insurance premiums and RPP paid by employer if deducted.
Standby charge = original cost *2% * # of months available or monthly lease cost *2/3 * # of months available. If automobile is
driven > 50% for employment = (personal km/1667 km per month)*standby charge
Operating benefit =.25*# of personal km if>50% for employ, then lesser of 50% of standby charge or .25*personal km
CCA: proceeds= lesser of cost and proceeds. Half year rule for class 10.1 applies when you buy the car AND when you dispose it. Half
year rule also applies to net additions for any class
Non-arms length person to corporation: corporation UCC= sellers cost + 1/2capital gain. Change in use: fair value<cost then UCC
=fair value. fair value>cost then UCC=cost+1/2 of the gain
Property income All corporations must accrue interest income on a daily basis
Individuals can choose between the receivable (only when cash is payable, NOT accrued), cash (when cash is received, or
anniversary day accrual method (interest is recognized every 12 month period from the date the investment was made)
Dividends from Canadian public companies grossed up by 138% and Canadian private companies by 138% (eligible dividend) or
117% (non-eligible dividend) if entitled to special low rate. and dividend tax credit. Foreign interest: the full amount of interest
before the amount is withheld is included in property income
Rental income is accrued. Rental income deductions: anything. mortgage fees (not interest), legal fees and appraisal fees are
amortized fully over 5 years, bad debt, CCA only to the extent that it doesn’t create a loss, investment councillor
Total gain – CCA already claimed = terminal loss
Capital gains/losses Capital gain= proceeds of disposition – adjusted cost base – expenses of disposition.
Deferred proceeds: lesser of deferred proceeds/total proceeds*gain or 80% of the gain in yr1, 60% in yr 2, 40% in yr 3, 20% in yr 4,
and 0 in yr 5. Deferred proceeds in the equation are equal to selling price minus cash received
ABIL: loss on loan or shares of a private Canadian company that uses 90% of its assets to conduct business.
Superficial loss: capital loss (not the taxable capital loss) on shares/property sold is denied but added to the new ACB
Depreciable property: gain/loss= UCC-proceeds
Listed personal property (art, rare books, jewellery, stamps, coins) losses are allowed but can only be used against gains on other LLP
(can be brought back 3 years or forward 7 years). LPP and PUP are deemed to have a minimum cost and proceeds of $1k. Cannot
claim loss on personal-use property but must claim gain.
Principal residence: capital gain reduced by ((1+# of years designated as a principal residence)/# of years owned)*gain. The year it
was purchased counts. subtract that number from the gain, ½ of that is reported in NI for tax purposes
Capital gains/losses/ABIL’s are always ½ taxable to get to net income for tax purposes
Other income/deductions Inclusions: RRSP, RRIF, old age security, DPSP, foreign pension, retiring allowance, RESP, support
payments (not to a kid). Anti-avoidance: withdrawal is included in the contributing spouse’s income from contributions in the year of
withdrawal and 2 years before
Deduct: RRSP (lesser of $26,010 and 18% of last years earned income. Minus pension adjustment + unused room) (income for RRSP
purposes= employment, rental, royalty, and spousal support income minus business, rental losses and spousal payments. No
interest, dividends, cap gains, or child) cant trigger a loss be transferring to RRSP and withdrawal school ok, support payments to
spouse (child not deductible), fees to appeal an assessment (limited to amount paid), child care (($5k, $8k if < 7yr old, $125 per week
$200 if <7 at year end)per kid) claimed by lower income spouse, CPP for self-employed people. Taxable retiring allowance, employee
stock option deduction, TFSA contributions are not deductible
Moving expenses: can be deducted to max of income earned in the new city. travel costs (meals, lodging, car expenses),
transportation and storage of belongings. cancelling lease, selling costs, commission, legal fees, and mortgage prepayment for old
residence. Legal fees and land transfer tax, replacing driver’s licenses, and obtaining utility connections. House hunting doesn’t
qualify. Move must make you 40km closer to work location
Property transferred to <18yr old=income goes to the parent
Tax credits: all of CPP and EI. Always multiply by 15% Spouse = ($11,635-spouses income)*15%. Age over 65 = ($7,225 – 15%*(net
income-36,430))*15%. Can deduct OAS repayment((NI- 74,788)*15%). All tuition*15% DIVIDEND TAX CREDIT eligible dividends:6/11
of the 38% gross up. 21/29 of the 17% gross up. Charity: add: 15% of 1st $200, 33% (lesser of gifts in excess of $200 and the amount
of taxable income>202800),29% of (total donations–200-lesser of gifts in excess of $200 and the amount of taxable income>202800)
Deceased taxpayer: any net capital losses can be deducted from any source of income in the year of death or previous year
Rights and things: uncashed mature bonds, unpaid bond interest and dividends due before death. Can fill out a new return that
starts from 0. Can include all credits too. All capital property is deemed to be sold to spouse at ACB if non depreciable and UCC if
depreciable. No taxable gains occur. If non-spouse, then sold at FMV.
Attribution: spouse who transferred must claim any income on the asset as well as the gain if the transfer value>cost.
NI for tax purposes=(employment+business+property+other)+(taxable cap gains+net taxable gains from LPP-allowable capital
losses)-(other deductions)-(employment+business+property+ABIL losses). Taxable income =ans-(stock option deduction+losses not
used in previous years+cap gain deduction) QSBC= shares owned for 2 years and >50% of its assets were in use 2years >90% FMV of
assets used in active business. lesser of unused cap gains, annual gain limit (lesser of net taxable cap gains of all assets and net
taxable cap gain on QSBC, minus net cap losses minus ABIL), CUMULATIVE gains limit(taxable cap gains-net cap losses-ABILs
deducted-cap gain deduction claimed-CNIL at end of current year). CNIL=opening+interest expense-rental income-eligible dividend