Detailed Table of Contents

Transcription

1 Detailed Table of Contents Chapter 1 Personal Tax Filing and Payment Requirements 1000 Introduction to Canadian Income Tax 1010 Sources of Tax Law 1020 Liability for Canadian Tax 1100 Filing Requirement 1110 Requirement to File 1120 Method of Filing 1130 Filing Tax Elections 1140 Filing Due Date 1150 Identification Information 1200 Instalments and Balance-Due Payments 1210 Instalment Methods 1220 Interest Charges on Late or Deficient Tax Instalments 1230 Balance-Due Day and Interest Charges on Outstanding Payments 1240 My Account and Authorized Representatives 1300 Other Tax Compliance Requirements 1310 Foreign Investment and Income Information Reporting 1320 Reporting Tax Avoidance Transactions 1330 Claim for Tax Shelter Loss or Deduction 1400 Filing Due Dates, Forms, Remitting and Penalties 1410 Filing Requirements Quick Reference Table 1420 Filing and Remitting Quick Reference Table 1430 Penalties Quick Reference Table 1440 Third-Party Penalties 1500 Taxpayer Relief Provisions 1510 Voluntary Disclosures 1520 Requests for Taxpayer Relief Chapter 2 Employment Income and Deductions 2000 Employment Income (T1: Lines 101, 102, 104) 2005 Income from an Office or Employment xi

2 Personal Tax Return Guide 2010 Loss from an Office or Employment 2015 Employee vs. Independent Contractor 2020 Salary Deferral Arrangements 2025 Professional Athletes 2100 Taxation of Employment Benefits and Allowances (T1: Lines 101, 102, 104) 2105 Accumulated Vacation and Sick Leave Credits 2110 Advances 2115 Aircraft (personal use of) 2120 Allowances 2125 Apprenticeship Incentive Grant 2130 Automobile and Motor Vehicle Benefits and Allowances 2135 Board and Lodging 2140 Cellular Phones, Computers and Internet 2145 Child Care Expenses 2150 Commissions 2155 Counselling Services 2160 Deferred Salary Payments 2165 Directors Fees 2170 Disability-Related Employment Benefits 2175 Discounts on Merchandise and Commissions from Personal Sales 2180 Employee Benefit Plans 2185 Employee Health and Welfare Trusts/Employee Life and Health Trusts 2190 Employee Profit Sharing Plans 2195 Employment Insurance Premiums 2200 Flexible Benefit Plans 2205 Gifts, Awards and Long-Service Awards 2210 Government Grants 2215 Gratuities and Tips 2220 Group Life Insurance Premiums 2225 Income Tax Paid by Employer 2230 Injury Leave Pay 2235 Loans Interest-Free and Low-Interest 2240 Loyalty and Other Points Programs 2245 Meals 2250 Member of Legislative Assembly (MLA) Expense Allowance xii

3 Detailed Table of Contents 2255 Miscellaneous Employee Benefits 2260 Moving Expenses 2265 Municipal Officer s Expense Allowance 2270 Parking 2275 Private Health Services Plan Premiums 2280 Prizes and Awards 2285 Professional Membership Dues 2290 Provincial Hospital or Health Care Plan Premiums 2295 Recreational Facilities and Club Dues 2300 Reimbursements and Awards 2301 Research Grants 2305 Retirement Compensation Arrangements (RCAs) 2310 Scholarships, Fellowships and Bursaries 2315 Security Options Benefit 2320 Service Pension or Allowance 2325 Social Events 2330 Special Payments by Employers 2335 Statutory Exemptions 2340 Strike Pay 2345 Tool Reimbursement or Allowance 2350 Transportation 2355 Tuition and Training Fees 2360 Uniforms and Special Clothing 2365 Vacations (Employer-Paid) 2370 Workers Compensation Payments 2400 Deductions from Employment Income 2401 Employee and Partner GST/HST Rebate (T1: Line 457) 2405 Annual Union, Professional and Membership Dues (T1: Line 212) 2410 Apprentice Mechanics Tools Deduction (T1: Line 229) 2415 Apprenticeship Incentive Grant Repayment (T1: Line 232) 2420 Artists Employment Expenses (T1: Line 229) 2425 Canadian Forces Personnel and Police Deduction (T1: Line 244) 2430 Clergy Residence Deduction (T1: Line 231) 2435 Commission Sales Employees (T1: Line 229) 2440 Employee Home Relocation Loan Deduction (T1: Line 248) xiii

4 Personal Tax Return Guide 2445 Employee Profit Sharing Plans (T1: Line 232) 2450 Legal Fees (T1: Line 232) 2455 Motor Vehicle (or Aircraft) Expenses (T1: Line 229) 2460 Musical Instrument Expenses (T1: Line 229) 2465 Northern Residents Deduction (T1: Line 255) 2470 Office Rent and Home Office Expenses (T1: Line 229) 2475 Overseas Employment Tax Credit (T1 Schedule 1: Line 426) 2480 Power Saw Operators (T1: Line 229) 2485 Railway Employees Expenses (T1: Line 229) 2490 Reimbursement of Disability Payments (T1: Line 232) 2495 Reimbursement of Salary (T1: Line 232) 2500 Retirement Compensation Arrangement (RCA) (T1: Line 232) 2505 Salary Paid to a Substitute or Assistant (T1: Line 229) 2510 Security Options Deduction (T1: Line 249) 2515 Supplies (T1: Line 229) 2520 Tradesperson s Tools Deduction (T1: Line 229) 2525 Transport Employees Expenses (T1: Line 229) 2530 Travelling Expenses (T1: Line 229) Chapter 3 Dividend, Interest, and Other Investment Income 3100 Dividend Income (Schedule 4: Part I, Line 120) 3105 Meaning of Taxable Dividend 3110 Dividends from Canadian Corporations 3115 Dividends from Non-Resident Corporations 3120 Dividends Received by Spouse or Common-Law Partner 3125 Capital Dividends 3130 Deemed Dividends 3135 Dividends in Kind 3140 Stock Dividends 3145 Patronage Dividends 3150 Capital Gains Dividends 3155 Demutualization Benefits 3160 Securities Lending Arrangements 3165 Dividend Rental Arrangements xiv

5 Detailed Table of Contents 3200 Interest Income (Schedule 4: Part II, Line 121) 3205 Taxation of Interest Income (Accrual Rules) 3210 Definition of Interest 3215 Canada Savings Bonds 3220 Treasury Bills 3225 Indexed, Prescribed and Deep Discount Debt Obligations 3230 Interest on Bonds Transferred between Interest Dates 3235 Blended Payments 3240 Securities Received in Satisfaction of Interest 3245 Interest on Tax Refunds 3250 Interest Included in Damage Awards 3300 Other Investment Income (Schedule 4: Part II, Line 121) 3305 Annuities 3310 Life Insurance 3315 Mutual Fund Income 3320 Income Trusts and Specified Investment Flow-Through Trusts 3325 Royalties and Payments Based on Production or Use 3330 Loans to Shareholders 3335 Loans to Non-Arm s Length Individuals 3340 Transfer of the Right to Income 3400 Income from Trusts and Estates (Schedule 4: Part II, Line 121) 3410 Taxation of Trust Distributions to Beneficiaries 3420 Non-Resident Beneficiaries 3430 Non-Resident Trusts 3500 Foreign Investment Income (Schedule 4: Part II, Line 121) 3510 Offshore Investment Fund Property 3520 Foreign Accrual and Property Income (FAPI) 3530 Foreign Investment and Income Information Reporting 3600 Net Partnership Income: Limited or Non-Active Partners Only (T1: Line 122) 3610 Limited Partner Definition 3620 At-Risk Amount 3700 Deductions in Computing Investment Income (Schedule 4: Part III, Line 221) 3710 Carrying Charges 3720 Interest Expense xv

6 Chapter 4 Capital Gains and Losses 4000 Dispositions of Capital Property 4005 Capital Gains and Losses (Sch. 3) 4010 Capital Gains versus Income 4015 Adventure or Concern in the Nature of Trade 4100 Computation of Capital Gains and Losses 4110 Proceeds of Disposition (Sch. 3: Col. 2) Personal Tax Return Guide 4120 Adjusted Cost Base (ACB) of Capital Property (Sch. 3: Col. 3) 4130 Total Capital Gains (Sch. 3: Line 191) 4140 Capital Gains Reserves (Sch. 3: Line 192) 4200 Qualified Dispositions (Sch. 3: Parts 1 and 2) 4210 Lifetime Capital Gains Exemption 4220 Qualified Small Business Corporation Shares (Sch. 3: Part 1) 4230 Qualified Farm or Fishing Property (Sch. 3: Part 2) 4240 Cumulative Net Investment Loss (CNIL) 4250 Surplus Stripping 4300 Disposition of Publicly Traded Shares, Mutual Fund Units, Deferral of Eligible Small Business Corporation Shares and Other Shares (Sch. 3: Part 3) 4310 Disposition of Mutual Fund Units or Shares 4320 Employee Security Options 4330 Donations of Capital Property 4340 Capital Gains Deferral for Eligible Small Business Corporation Shares 4350 Proceeds of Disposition of Securities: Special Rules 4360 Investments in a Bankrupt Corporation: Deemed Disposition of Shares 4370 Convertible Shares or Debt 4380 Synthetic Disposition Arrangements 4400 Disposition of Real Estate, Depreciable Property and Other Properties (Sch. 3: Part 4) 4410 Disposition of Land and Building 4420 Disposition of Depreciable Property 4430 Principal Residence Exemption 4500 Disposition of Bonds, Debentures, Promissory Notes and Other Properties (Sch. 3: Parts 5 8) 4510 Bonds, Debentures, Treasury Bills, Promissory Notes and Similar Properties (Sch. 3: Part 5) 4520 Debts Held on Capital Account (Bad Debts) (Sch. 3: Part 5) 4530 Foreign Exchange Gains and Losses on Capital Account (Sch. 3: Part 5) 4540 Options to Buy or Sell Property (Sch. 3: Part 5) xvi

7 Detailed Table of Contents 4550 Other Capital Properties (Sch. 3: Part 5) 4560 Other Mortgage Foreclosures and Conditional Sales Repossessions (Sch.3 Part 6) 4570 Personal-Use Property (Sch.3: Parts 7 and 8) 4600 Allowable Business Investment Losses (ABILs) 4610 Deductibility of ABILs (T1: Lines 217 and 228; Sch. 3: Line 178) 4620 Small Business Corporation Definition 4630 Guarantees of Debt 4700 Replacement Property Rules 4710 Former Business Property 4720 Replacement Property (Involuntary Dispositions) 4730 Applicable Rollover Rules Where Election is Filed 4740 Disposition of Land and Building: Reallocation of Proceeds 4800 Miscellaneous Loss Denial and Limitation Rules 4810 Losses on Transfers between Affiliated Persons 4820 Dividend Stop-Loss Rules Chapter 5 Rental Income 5000 Rental Income (T1 Lines 126 and 160) 5005 U.S. Rental Income 5100 Real Property Rental: Business or Property Income? 5110 Nature of Rental Income 5120 Income Tax Consequences 5200 Rental Expenses 5210 Current vs. Capital Expense 5220 Deductible Rental Expenses 5230 Non-Deductible Expenses 5240 Capital Cost Allowance (CCA) (Form T776: Lines 9936, 9947, 9948, Charts A-F) 5250 Rental Expenses: Special Situations 5300 Rental Losses 5400 Principal Residence: Change-in-Use Rules 5410 Change in Use from Personal to Income Producing 5420 Change in Use from Income-Producing to Personal 5430 Partial Changes in Use xvii

8 Personal Tax Return Guide 5500 Non-Residents Electing under Section Alternative re Rents 5520 Meaning of Timber Royalty 5530 Optional Method of Payment 5540 Subsequent Sale of Canadian Property 5550 Rental or Other Business 5600 Completing Form T776, Statement of Real Estate Rentals 5610 Identification and Details of Other Co-Owners 5620 Rental Income (Form T776: Lines 8141, 8230, 8299) 5630 Rental Expenses Chapter 6 Business and Professional Income 6100 Business Income (T1: Lines 135, 162) 6110 Determining Business Income 6120 Limitations on Deductibility of Expenses 6130 Allowable Deductions for Expenses 6140 Non-Allowable Deductions for Expenses 6150 Capital Cost Allowance (CCA) 6160 Eligible Capital Expenditures 6170 Special Situations 6200 Professional Income (T1: Lines 137, 164) 6210 Determining Professional Income 6220 Election to Exclude Work in Progress 6230 Professional Expenses 6240 Incorporation of a Professional Practice 6250 Service and Management Corporations 6300 Farming and Fishing Income (T1: Lines 141, 143, 168, 170) 6310 Computing Farming and Fishing Income 6320 Definition of Farming and Fishing 6330 Other Considerations 6340 Net Income Stabilization Account (NISA) 6350 Farming Losses xviii

9 Detailed Table of Contents Chapter 7 Depreciation, Amortization, and Resource Deductions 7000 Depreciable Property Quick Reference Table 7005 CCA Class Summary Table 7100 Capital Cost Allowance (CCA) 7105 General Rules Applicable to Depreciable Property 7110 CCA Claim for the Year (Form T776 or T2125: Part A) 7115 Depreciable Property Additions (Form T776 or T2125: Part A, Column 3) 7120 Adjustment for Current-Year Additions (Form T776 or T2125: Part A, Column 6) 7125 Available-For-Use Rules 7130 Depreciable Property Special Situations 7135 Dispositions of Depreciable Property (Form T776 or T2125: Part A, Column 4) 7140 Half-Year Rule (Form T776 or T2125 Part A: Column 6) 7145 CCA Recapture (Form T776: Line 9947, Form T2125: Line 8230) 7150 Terminal Losses (Form T776: Line 9948, Form T2125: Line 9270) 7155 Property included in a Separate Class 7160 Luxury Passenger Vehicles (Class 10.1) 7165 Rental Properties 7170 Revising CCA Claims 7200 Special Depreciable Property Rules 7205 Patents, Franchises, Concessions, and Licences 7210 Leasehold Interests (Class 13) 7215 Specified Leasing Property 7220 Lease Transactions 7225 Mining Projects (Classes 41, 41.2) 7230 Oil Sands Projects (Classes 41, 41.1) 7235 Clean Energy Equipment (Classes 43.1, 43.2) 7300 Eligible Capital Property 7305 Eligible Capital Property Additions 7310 Eligible Capital Amounts 7315 Gain on Dispositions of Eligible Capital Property 7320 Restrictive Covenants 7325 Class Resource Pools 7405 Canadian Exploration Expenses (CEE) (Form T1229: Parts II and III) 7410 Canadian Development Expenses (CDE) (Form T1229: Parts II and III) xix

10 Personal Tax Return Guide 7415 Canadian Oil and Gas Property Expenses (COGPE) (Form T1229: Parts II and III) Chapter 8 Pensions and Other Income 8000 Pensions and Other Income 8100 Pension Income (T1: Lines ) 8110 Old Age Security Pension (T1: Line 113) 8120 CPP/QPP Benefits (T1: Line 114) 8130 Other Pensions or Superannuation (T1: Line 115) 8140 Elected Split-Pension Amount (T1: Line 116) 8200 Other Income (T1: Lines ) 8210 Universal Child Care Benefit (T1: Line 117) 8220 Employment Insurance & Other Benefits (T1: Line 119) 8230 Registered Disability Savings Plan Income (T1: Line 125) 8240 Support Payments Received (T1: Line 128) 8250 RRSP Income (T1: Line 129) 8260 Other Income (T1: Line 130) 8300 Workers Compensation and Other Benefits (T1: Lines 144, 145, 146) 8310 Workers Compensation Benefits (T1: Line 144) 8320 Social Assistance Payments (T1: Line 145) 8330 Net Federal Supplements (T1: Line 146) Chapter 9 Other Deductions 9000 Other Deductions 9010 Personal Tax Deductions Quick Reference Table 9100 Deductions from Total Income (T1: Lines ) 9105 PRPP Employer Contributions (T1: Line 205) 9110 Pension Adjustment (T1: Line 206) 9120 Registered Pension Plan Deduction (T1: Line 207) 9130 RRSP Deduction (T1: Line 208) 9140 Deduction for Elected Split-Pension Amount (T1: Line 210) 9150 Annual Union, Professional or Like Dues (T1: Line 212) 9160 Universal Child Care Benefit Repayment (T1: Line 213) 9170 Child Care Expenses (T1: Line 214) 9180 Disability Supports Deduction (T1: Line 215) xx

11 Detailed Table of Contents 9190 Business Investment Loss (T1: Line 217) 9200 Moving Expenses (T1: Line 219) 9210 Support Payments Made (T1: Line 220) 9220 Carrying Charges & Interest Expenses (T1 Line 221) 9230 Deduction for CPP or QPP Contributions on Self-Employment and Other Earnings (T1: Line 222) 9240 Exploration & Development Expenses (T1: Line 224) 9250 Other Employment Expenses (T1: Line 229) 9260 Clergy Residence Deduction (T1: Line 231) 9270 Other Deductions (T1: Line 232) 9280 Social Benefits Repayment (T1: Line 235) 9300 Deductions from Net Income (T1: Lines ) 9310 Canadian Forces Personnel and Police Deduction (T1: Line 244) 9320 Employee Home Relocation Loan Deduction (T1: Line 248) 9330 Security Options Deductions (T1: Line 249) 9340 Other Payments Deduction (T1: Line 250) 9350 Limited Partnership Losses of Other Years (T1: Line 251) 9360 Non-Capital Losses of Other Years (T1: Line 252) 9370 Net Capital Losses of Other Years (T1: Line 253) 9380 Capital Gains Deduction (T1: Line 254) 9390 Northern Residents Deduction (T1: Line 255) 9400 Additional Deductions (T1: Line 256) Chapter 10 Federal Non-Refundable Tax Credits Federal Non-Refundable Tax Credits (T1 Schedule 1: Lines ) Personal Tax Credits Quick Reference Table Basic Personal Amount (T1 Schedule 1: Line 300) Age Amount (T1 Schedule 1: Line 301) Spouse or Common-Law Partner Amount (T1 Schedule 1: Line 303) Canada Caregiver Amount for Spouse or Common-Law Partner, or Eligible Dependant Age 18 or Older (T1 Schedule 1: Line 304) Amount for an Eligible Dependent (T1 Schedule 1: Line 305) Amount for Infirm Dependants Age 18 or Older (T1 Schedule 1: Line 306) Canada Caregiver Amount for Other Infirm Dependants Age 18 or Older (T1 Schedule 1: Line 307) CPP/QPP Contributions through Employment (T1 Schedule 1: Line 308) CPP/QPP Contributions on Self-Employment and Other Earnings (T1 Schedule 1: Line 310) xxi

12 Personal Tax Return Guide Employment Insurance Premiums through Employment (T1 Schedule 1: Line 312) Adoption Expenses (T1 Schedule 1: Line 313) Pension Income Amount (T1 Schedule 1: Line 314) Caregiver Amount (T1 Schedule 1: Line 315) Disability Amount (for self) (T1 Schedule 1: Line 316) Employment Insurance Premiums on Self-Employment (T1 Schedule 1: Line 317) Disability Amount Transferred from a Dependant (T1 Schedule 1: Line 318) Interest Paid on Your Student Loans (T1 Schedule 1: Line 319) Tuition, Education and Textbook Amounts (T1 Schedule 1: Line 323) Tuition Amounts Transferred from a Child (T1 Schedule 1: Line 324) Amounts Transferred from Spouse or Common-Law Partner (T1 Schedule 1: Line 326) Medical Expenses for Self, Spouse and Dependent Children (T1 Schedule 1: Line 330) Medical Expenses for Other Dependants (T1 Schedule 1: Line 331) Donations and Gifts (T1 Schedule 1: Line 349) Volunteer Firefighters Amount (T1 Schedule 1: Line 362) Canada Employment Amount (T1 Schedule 1: Line 363) Public Transit Amount (T1 Schedule 1: Line 364) Children s Fitness Amount (T1 Schedule 1: Line 365) Canada Caregiver Amount for Infirm Children Under 18 Years of Age (T1 Schedule 1: Line 367) Home Buyers Amount (T1 Schedule 1: Line 369) Children s Arts Amount (T1 Schedule 1: Line 370) Search and Rescue Volunteers Tax Credit (T1 Schedule 1: Line 395) Home Accessibility Tax Credit (T1 Schedule 1: Line 398) Chapter 11 Calculation of Net Federal Tax Calculation of Net Federal Tax (T1 Schedule 1: Lines ) Federal Foreign Tax Credit (T1 Schedule 1: Line 405) Federal Political Contribution Tax Credit (T1 Schedule 1: Line 410) Investment Tax Credit (T1 Schedule 1: Line 412) Labour-Sponsored Funds Tax Credit (T1 Schedule 1: Lines 413, 414) Working Income Tax Benefit Advance Payments (T1 Schedule 1: Line 415) Special Taxes (T1 Schedule 1: Line 418) Family Tax Cut Credit (T1 Schedule 1: Line 423) Federal Tax on Split Income (T1 Schedule 1: Line 424) xxii

13 Detailed Table of Contents Federal Dividend Tax Credit (T1 Schedule 1: Line 425) Overseas Employment Tax Credit (T1 Schedule 1: Line 426) Minimum Tax Carryover (T1 Schedule 1: Line 427) Calculation of Refund Due or Balance Owing (T1: Lines ) CPP Contributions Payable on Self-Employment and Other Earnings (T1: Line 421) Social Benefits Repayment (T1: Line 422) EI Premiums Payable on Self-Employment and Other Earnings (T1: Line 430) Total Income Tax Deducted (T1: Line 437) Refundable Quebec Abatement (T1: Line 440) CPP Overpayment (T1: Line 448) Employment Insurance Overpayment (T1: Line 450) Refundable Medical Expense Supplement (T1: Line 452) Working Income Tax Benefit (T1: Line 453) Refund of Investment Tax Credit (T1: Line 454) Part XII.2 Trust Tax Credit (T1: Line 456) Employee and Partner GST/HST Rebate (T1: Line 457) Children s Fitness Tax Credit (T1: Lines 458, 459) Eligible Educator School Supply Tax Credit (T1: Lines 468, 469) Tax Paid by Instalments (T1: Line 476) Refund or Balance Owing (T1: Lines 484, 485) Chapter 12 Provincial and Territorial Taxes and Credits Provincial Tax Overview Provincial Residence Provincial or Territorial Tax (Form T1: Line 428) Provincial or Territorial Credits (Form T1: Line 479) Administration and Enforcement Alberta Liability for Tax Tax Rate Tax on Split Income (Form AB428: Line 34) Additional Minimum Tax (Form AB428: Line 42) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives xxiii

14 Personal Tax Return Guide British Columbia Liability for Tax Tax Rates Tax on Split Income (Form BC428: Line 42) Additional Minimum Tax (Form BC428: Line 50) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives Manitoba Liability for Tax Tax Rates Tax on Split Income (Form MB428: Line 43) Additional Minimum Tax (Form MB428: Line 51) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives New Brunswick Liability for Tax Tax Rates Tax on Split Income (Form NB428: Line 39) Additional Minimum Tax (Form NB428: Line 48) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives Newfoundland and Labrador Liability for Tax Tax Rates Tax on Split Income (Form NL428: Line 42) Additional Minimum Tax (Form NL428: Line 50) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives Northwest Territories Liability for Tax Tax Rates Tax on Split Income (Form NT428: Line 39) Additional Minimum Tax (Form NT428: Line 47) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives xxiv

15 Detailed Table of Contents Nova Scotia Liability for Tax Tax Rates Tax on Split Income (Form NS428: Line 41) Additional Minimum Tax (Form NS428: Line 49) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives Nunavut Liability for Tax Tax Rates Tax on Split Income (Form NU428: Line 40) Additional Minimum Tax (Form NU428: Line 48) Non-Refundable Tax Credits, Benefits and Incentives Other Tax Credits Ontario Liability for Tax Tax Rates Tax on Split Income (Form ON428: Line 40) Additional Minimum Tax (Form ON428: Line 48) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives Prince Edward Island Liability for Tax Tax Rates Tax on Split Income (Form PE428: Line 41) Additional Minimum Tax (Form PE428: Line 49) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives Saskatchewan Liability for Tax Tax Rates Tax on Split Income (Form SK428: Line 45) Additional Minimum Tax (Form SK428: Line 53) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives xxv

16 Personal Tax Return Guide Yukon Liability for Tax Tax Rates Tax on Split Income (Form YT428: Line 45) Additional Minimum Tax (Form YT428: Line 53) Non-Refundable Tax Credits Other Tax Credits, Benefits and Incentives Chapter 13 Completing the Québec Income Tax Return (Form TP-1) Introduction Overview and New for Who Must File a Québec Income Tax Return Definition of Spouse Definition of Business Establishment Residency Filing Deadline and Penalties Solidarity Tax Credit Calculating Total Income (Form TP-1: Lines ) Overview Income from Transferred Property Employment Income (Form TP-1: Line 101) Retirement Income Transferred by a Spouse (Form TP-1: Line 123) Dividends from Taxable Canadian Corporations (Form TP-1: Lines 128, 166, 167) Interest and Other Investment Income (Form TP-1: Line 130) Rental Income (Form TP-1: Lines 136, 168) Capital Gains (Form TP-1: Line 139) Support Payments (Form TP-1: Line 142) Income Replacement Indemnities and Net Federal Supplements (Form TP-1: Line 148) Other Income (Form TP-1: Line 154) Business Income (Form TP-1: Line 164) Calculating Net Income (Form TP-1: Lines 201 to 275) Deduction for Workers (Form TP-1: Line 201) Registered Pension Plan Deduction (Form TP-1: Line 205) Employment Expenses and Deductions (Form TP-1: Line 207) xxvi

17 13220 RRSP Deduction (Form TP-1: Line 214) Support Payments (Form TP-1: Line 225) Moving Expenses (Form TP-1: Line 228) Detailed Table of Contents Carrying Charges and Interest Expenses (Form TP-1: Line 231) Business Investment Loss (Form TP-1: Line 234) Deduction for Residents of Designated Remote Areas (Form TP-1: Line 236) Deduction for Exploration and Development Expenses (Form TP-1: Line 241) Deduction for Amounts Contributed to the QPP and the QPIP on Income from Self-Employment (Form TP-1: Line 248) Other Deductions (Form TP-1: Line 250) Carry-Over of the Adjustment of Investment Expenses (Form TP-1: Line 252) Adjustment of Investment Expenses (Form TP-1: Line 260) Calculating Taxable Income (Form TP-1: Lines ) Adjustment of Deductions (Form TP-1: Line 276) UCCB and Income from a Registered Disability Savings Plan (Form TP-1: Line 278) Deduction for Strategic Investments (Form TP-1: Line 287) Non-Capital Losses from Other Years (Form T-1: Line 289) Net Capital Losses from Other Years (Form TP-1: Line 290) Capital Gains Deduction (Form TP-1: Line 292) Deduction for an Indian (Form TP-1: Line 293) Deductions for Certain Income (Form TP-1: Line 295) Miscellaneous Deductions (Form TP-1: Line 297) Non-Refundable Tax Credits (Form TP-1: Lines ) Basic Personal Amount (Form TP-1: Line 350) Age Amount, Amount for a Person Living Alone, and Amount for Retirement Income (Form TP-1: Line 361) Amount for Dependants and Amount Transferred by a Child 18 or over Enrolled in Post-Secondary Studies (Form TP-1: Line 367) Union, Professional or Other Dues (Form TP-1: Line 373) Amount for a Severe and Prolonged Impairment in Mental or Physical Functions (Form TP-1: Line 376) Expenses for Medical Services Not Available in your Area (Form TP-1: Line 378) Medical Expenses (Form TP-1: Line 381) Tuition or Examination Fees (Form TP-1: Line 384) Interest Paid on a Student Loan (Form TP-1: Line 385) Tuition or Examination Fees Transferred by a Child (Form TP-1: Line 387) Tax Credit for Volunteer Firefighters (Form TP-1: Line 390) xxvii

18 Personal Tax Return Guide Tax Credit for Workers 65 or Older (Form TP-1: Line 391) Tax Credit for Recent Graduates Working in Remote Resource Regions (Form TP-1: Line 392) Donations and Gifts (Form TP-1: Line 393) Income Tax and Contributions (Form TP-1: Lines ) Income Tax on Taxable Income (Form TP-1: Line 401) Tax Adjustment (Form TP-1, Schedule E: Line 402) Foreign Tax Credit (Form TP-1, Schedule E: Line 409) Tax Credit for the Beneficiary of a Designated Trust (Form TP-1: Line 411) Tax Credit for Contributions to Authorized Québec Political Parties (Form TP-1: Line 414) Dividend Tax Credit (Form TP-1: Line 415) Tax Credit for the Acquisition of Capital Régional et Coopératif Desjardins Shares (Form TP-1: Line 422) Tax Credit for a Labour-Sponsored Fund (Form TP-1: Line 424) Credits Transferred from One Spouse to the Other (Form TP-1: Line 431) Alternative Minimum Tax (Form TP-1: Line 432, Schedule E) Special Taxes (Form TP-1: Line 443) Health Contribution (Form TP-1: Line 448) Calculating Refund or Balance Due (Form TP-1: Lines ) Tax Credit for Childcare Expenses (Form TP-1: Line 455) Tax Credits Respecting the Work Premium (Form TP-1: Line 456) Tax Credit for Home-Support Services for Seniors (Form TP-1: Line 458) QST Rebate for Employees and Partners (Form TP-1: Line 459) Tax Shield (Form TP-1: Line 460) Other Credits (Form TP-1: Line 462) Refund (Form TP-1: Line 474) Transfer to Spouse (Form TP-1: Lines 476, 477) Assessment Assessment Recourse Chapter 14 Assessments, Audits, and Avoidance Rules Adjustments, Assessments, and Objections Adjusting a Filed T1 Return Assessments and Reassessments Assessment Checklist xxviii

19 Detailed Table of Contents Waivers Objections Audits and Investigations Tax Audits Books and Records Investigations and Inspections Solicitor-Client Privilege Income Splitting and the Attribution Rules Tax on Split Income (TOSI) Transfers and Loans to Spouse or Common-Law Partner and Minors Attribution of Gains/Losses to Spouse or Common Law Partner Transfers and Loans to a Trust Transfers and Loans to a Corporation Transfers of Property to a Reversionary Trust Income Splitting Strategies Other Avoidance Rules Benefit Conferred (Indirect Payments or Transfers) Transfer of Income Rights Non-Arm s Length Loans Inadequate Consideration Shareholder Benefits and Loans Non-Arm s Length Sale of Shares (Surplus Stripping) General-Anti Avoidance Rule (GAAR) Consequences of GAAR Applying Series of Transactions Post-Canada Trustco GAAR Cases Chapter 15 Canadian Taxation of Non-Residents and Deemed Residents Determining Residency for Tax Purposes Common Law Rules Deeming Rules Ceasing Canadian Residency Part-Year Residents xxix

20 Personal Tax Return Guide Dispositions of Taxable Canadian Property Excluded Dispositions Certificates of Compliance Payments Subject to Withholding Tax Interest Payments Dividend Payments Rents and Royalties Pensions and Other Benefits Filing Requirements for Non-Residents & Deemed Residents Elective Returns for Non-Residents Emigration and Immigration Emigrating from Canada Immigrating to Canada Chapter 16 Tax Planning, Registered Plans, and U.S. Tax Considerations Tax Planning Owner-Manager Remuneration Planning Post-Mortem Tax Planning and Elections Registered Plans Tax-Free Savings Accounts (TFSAs) Registered Education Savings Plans (RESPs) Registered Disability Savings Plans (RDSPs) Comparing Registered Plans U.S. Tax Considerations for Canadians with U.S. Connections U.S. Income Tax U.S. Estate Tax U.S. Filing Due Dates, Forms, Remitting, and Penalties Appendix A Medical Expense Credit Quick Reference Table Appendix B Tax Reference Tables B-1 Federal and Provincial/Territorial Income Tax Rates and Brackets 2017 B-2 Federal and Provincial/Territorial Non-Refundable Tax Credit Rates and Amounts for 2017 B-3 Québec Non-Refundable and Refundable Tax Credit Rates and Amounts for 2017 B-4 Combined Top Marginal Tax Rates for Individuals 2017 xxx

21 Detailed Table of Contents B-5 Retirement and Savings Plans Contribution Limits B-6 Automobiles Deductions and Benefits xxxi