 Guide to Preparing 2017 Personal Tax Returns
What's new for 2017? Personal tax calendar (2018) Filing tips for 2017 personal tax returns File on time Review prior-year return Capital losses Pension income splitting Charitable donations Interest expense Medical expenses Child care expenses Claim all available credits Consider deferring deductions Business owners Old receipts Moving Filing returns for children Home purchasers Remember the foreign reporting requirement Before filing the return Chapter 1 – The T1 return – Getting started Introduction Who must file a T1 return? Goods and services tax/harmonized sales tax (GST/HST) credit Applying for the Canada child benefit (CCB) What's new for 2017? Who is liable to tax? Concepts of tax residency for individuals Factual residents Factors applied by the courts to determine residence status Factors applied by the CRA to determine residence status Significant residential ties Secondary residential ties Other factors Residency determination by the CRA Taxation of factual residents Deemed residents Statutory rules Sojourners Other deemed residents Taxation of deemed residents Part-year residents Taxation of part-year residents Exempt residents Non-resident individuals Part I tax Part XIII tax (non-resident tax) Which returns are required and when are they due? Return of income Information returns Taxation year Which tax and benefit package should an individual use? T1 General Income Tax and Benefit Return Adjusting a T1 return (Form T1-ADJ) T1 General Income Tax and Benefit Return for Non-Residents and Deemed Residents Non-residents – Old age security clawback Non-residents – Elective returns Adjusting a T1 return (Form T1-ADJ) Due dates Due dates that fall on holidays Due dates for elective returns for non-residents Section 216 election Section 216.1 election Section 217 election Reduction of non-resident withholding taxes Due dates for deceased individuals Optional returns Due dates for other elections Summary of income tax returns, due dates, and taxation years How and where to file Electronic filing Returns filed electronically – Deemed date of receipt What is electronic filing? Methods available Advantages of electronic filing EFILE Restrictions Requirement to EFILE for tax preparers Adjusting T1 returns using ReFILE NETFILE Restrictions How to NETFILE Adjusting T1 returns using ReFILE Auto-fill My Return Supporting documents Payment of balance due Mailing or delivery of a T1 paper return Returns filed by mail – Deemed date of receipt Returns delivered to the CRA – Date of receipt Payments by mail – Deemed date of receipt Paper returns – Addresses for filing and making instalments Chapter 2 – Total income Overview Amounts not taxed Amounts exempt by statute Social assistance payments Damages for personal injury or death Amounts related to military service or wartime Expense allowances, travel allowances, and volunteer service payments Annotations Employment income Line 101 – Employment income Exemptions from employment income Volunteer firefighters and search and rescue workers Employment-related benefits and allowances Automobiles Employee's own vehicle – Automobile allowance provided by employer Employee's own vehicle – No allowance provided by employer Employer-provided automobile – Standby charge Employer-provided automobile – Operating expense benefit Board and lodging Employment at a special (temporary) work site or remote location Employee discounts Low-interest or interest-free loans Home purchase loans Housing subsidies other than housing loans Security option benefits Security options granted by a non-CCPC Security options granted by a CCPC Change in the corporation's status Cashout of security options Moving expense reimbursements General rule Housing loss Cellphones, computers, and related services Bring your own device Salary deferral arrangements Tax consequences Employment expenses Reporting Non-residents Canadian-source employment income Annotations Line 104 – Other employment income Net research grants Eligible expenditures Research assistants Capital expenditures Personal and living expenses Travel costs Documentation Foreign employment income Determination of foreign-source employment income Employer reimbursement of temporary living costs GST/HST and QST rebates Non-residents Annotations Investment income Line 120 – Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations What's new for 2017? Eligible dividends Gross-up amount Integration mechanism Documentation Acceptable notification and documentation of eligible dividends Split income Dividends received by a spouse or common-law partner Carrying charges and interest Non-Residents Annotations Line 121 – Interest and other investment income What's new for 2017? Foreign-source investment income Offshore investment fund property and foreign investment entities Interest income – Accrual rules Bank accounts Term deposits, guaranteed income certificates (GICs), and similar investments Canada Savings Bonds Treasury bills (T-bills) Mutual funds Segregated fund investments Income trusts and real estate investment trusts Earnings on life insurance policies Split income Shareholder debt Derivative forward agreements Derivatives – Mark-to-market election Sales of linked notes Carrying charges and interest Documentation Non-residents Annotations Line 122 – Net partnership income: limited or non-active partners only Tax shelters Carrying charges and interest Non-residents Annotations Capital gains (Line 127) What's new for 2017? Overview Capital gains, losses, and property Historical perspective Transitional rules Capital gain and capital loss Capital property Income versus capital determination Exclusions from capital gain and capital loss Inclusions in capital gain and capital loss Capital gains and losses in respect of foreign currency Disposition of Canadian securities Deduction from business investment loss Recovery of bad debts related to previous dispositions of eligible capital property Repayment of government and other financial assistance Taxable capital gains and allowable capital losses Dispositions Specific inclusions Specific exclusions Transfers of property that do not result in a change in beneficial ownership Transfers of property between trusts Certain payments in respect of a capital interest in a trust Transfers of property for securing a debt or loan Transfers of property to a trust to effect payment under a debt or loan Partitions of jointly owned property Date of disposition Deemed dispositions Death Remainder interests in real property Immigration Emigration Bad debt Shares of a bankrupt corporation Dispositions subject to warranty, covenant, or other contingent obligation When a small business corporation becomes public Granting or expiry of an option Gifts of capital property Change in use Synthetic dispositions Deemed gain – Negative adjusted cost base General rule Deemed gain for limited and non-active partners Destruction, loss, or expropriation of property Changes in terms of securities Debt securities Equity securities Computation of capital gains and losses Proceeds of disposition General definition Specific exclusions from proceeds of disposition Gifts, inadequate consideration, and excessive consideration Distribution by a personal trust Adjusted cost base General definition Property on hand – December 31, 1971 Valuation dates and V-day values Neutral or tax-free zone Laid-down costs Incidental or additional costs Cost of property for which 1994 capital gains exemption election was made Cost of certain properties Dividends in kind Stock dividends Other special rules Adjustments in determining ACB Additions and deductions to ACB of non-depreciable property General additions Additions relating to shares of a corporation Additions relating to units or interests in a trust General deductions Deductions relating to shares of a corporation Deductions relating to units or interests in a trust ACB of an interest in a partnership ACB of identical properties General rule Bonds, debentures, bills, notes, or similar obligations Property before and after valuation day Costs of disposition Capital gains and losses – Special rules Personal-use property Definition General rules Rules applicable to part dispositions Sets Debts Listed personal property Net gain and listed personal property losses Principal residence Ceasing to be resident in Canada Depreciable property Dispositions – Land and building Eligible capital property Election to report a capital gain Farm or fishing property Post-2016 dispositions of former eligible capital property Foreign property Security option shares or units – Identical property Charitable gifts of capital property Publicly listed securities Flow-through shares Options to acquire property Exercising an option Extension or renewal of an option Sale of option to third party Restrictive covenants Wins and losses on lotteries Election on disposition of Canadian securities Tax on split income Loss denials and limitations Lottery losses or gains Superficial loss Superficial loss defined Identical properties Exceptions to the superficial loss rules Allocation of disallowed loss Pro rata denial of loss Loss on share redemption Loss on the disposition of shares of certain corporations Loss on shares where dividends were received Loss on shares held by an individual Loss on shares held by an individual's estate Loss on shares held by an individual who emigrates from Canada Loss on personal-use property Loss on transfer to a deferred income plan Loss on transfer of debt to a related person Loss on debt settlement Loss on the disposition of debt for non-income-producing purposes Principal residence exemption Principal residence defined Land as part of the principal residence Ownership Ordinarily inhabited Designation by an individual Making the designation Capital gains reduction – Principal residence exemption Pre-1982 properties and alternative calculation Reduction for previously claimed capital gains exemption Change in use Residential to rental Rental to residential Partial changes in use Disposition of part of a principal residence Farm property Principal residence exemption for a non-resident Capital gains exemption Overview Calculating entitlement to the capital gains exemption Part-year residents Qualified property Qualified small business corporation shares Small business corporation test Holding-period test Active business asset test and stacking rules Connected corporations Special rules – Related persons and partnerships Special rules – Value of corporate-owned life insurance policies Special rules – Identical shares Small business corporations going public Purification techniques Qualified farm or fishing property Transferring qualified farm or fishing property to a child Capital gains deduction – Limitation of claim Unused lifetime exemption limit Annual gains limit Cumulative gains limit Cumulative net investment loss Allowable business investment loss Alternative minimum tax Failure to report gain Anti-avoidance rules Corporate reorganizations Gain attributable to insufficient dividends Disproportionate allocation or distribution of gains Trusts and partnerships Designation to beneficiaries of trusts Deduction available to certain spousal trusts Flow-through to partners of partnerships Capital gains deferrals Capital gains deferral for investment in small business Overview Capital gains deferral – General rule Qualifying disposition Eligible small business corporation shares Active business corporation Excluded corporations Eligible reinvestment Calculating the capital gains deferral Adjusted cost base reduction Replacement property rules Involuntary dispositions Voluntary dispositions Replacement property Deferring the gain Election Capital gains reserves Overview Where the reserve is not available Promissory notes Reserves on foreign property Reserve for a gift of a non-qualifying security Earnout arrangements Convertible property Convertible securities Convertible debt Transfer of farm or fishing property to a child or grandchild Used principally in the business of farming or fishing Deferral Similar intergenerational rollovers Transfer of farm or fishing property to a parent Property transferred between spouses or common-law partners Rollovers and reorganizations Qualifying dispositions to a trust Qualifying exchanges for mutual funds Transfer of capital property to a corporation or partnership Share-for-share exchange Amalgamation Non-residents Tax payable by non-residents Dispositions of taxable Canadian property Taxable Canadian property defined Real or immovable property situated in Canada Property used in carrying on a business in Canada Shares of a corporation Interests in a partnership Interests in a trust Interests and options Other taxable Canadian property Compliance requirements Section 116 filing requirement Obligations of the non-resident vendor Obligations of the purchaser Application for clearance certificate for other property Gifts of property by a non-resident person Processing time Penalties for not filing Quebec clearance certificate Requirement to file a Canadian T1 return Treaty relief Dispositions of treaty-protected property Annotations Rental income (Line 126) Income from a business or income from property? Extent of additional services provided Management and supervision of rental properties Incidental business Rental operations owned by a partnership Reporting Calculation of gross rental income Accrual or cash method? Rents received in advance Payment of rent in kind Other related income Rental expenses Current versus capital expenditures Capital expenses Landscaping costs Alterations to rental property to assist a person with a disability Devices and equipment to assist a person with a disability Current expenses Advertising Insurance Interest and financing fees Legal, accounting, and other professional fees Management and administration fees Motor vehicle expenses Office expenses Property taxes Repairs and maintenance Salaries, wages, and benefits Travel Utilities Other expenses Landscaping costs Undeveloped land Lease cancellation payments Leasehold inducements Condominiums and condominium fees Non-deductible expenses Capital cost allowance Purpose Reporting CCA rules and restrictions Rental building costing $50,000 or more Changing from personal to rental use Grants, subsidies, and other incentives or inducements Non-arm's length transactions Selling the rental property Replacement property Rental losses Special situations Principal residence Renting below fair market value Farmland rental by individuals Surface rental by farmers Non-residents Rental property outside Canada Annotations Business and professional income (Lines 135–143) What's new for 2017? Overview Taxation of business and professional income Classification of income by source Business income versus property income What is a business? What is a property? Distinguishing between business and property income Business income (self-employment income) versus employment income Wiebe Door test Evidence of relationship Specific income tax consequences arising from the classification Deductible expenses Business income versus capital gain What is profit? Timing of deduction Timing of income recognition Accrual basis or cash basis? Business income – Inclusions Gross sales and professional fees Amounts received Election to transfer customer deposit to purchaser under asset sale Amounts receivable Work in progress Other income Payments based on production or use Damages for breach of contract Damages for loss of business income Insurance proceeds expended Inducement payments, reimbursements, and other amounts Types of reimbursements, inducements, and similar amounts Timing of receipt Restrictive covenants Investment tax credits Gain on settlement of debt Provisions or reserves from previous years Income in special situations Sales made with a right of return Construction contract income Accounting treatment of contract revenue Tax treatment of contract revenue Progress method of revenue recognition Fixed-total-price contracts Cost of goods sold Meaning of inventory Inventory valuation methods What is cost? Overhead allocation Depreciation in inventory What is fair market value? Change in inventory valuation method Inventory valuation for adventures in the nature of trade Parts or supplies Inventory obsolescence reserves Artists Work in progress of a professional Non-residents Derivative instruments Business income – Deductions Deductibility of an expense General limitations 1. The expense must be incurred to earn business income 2. The expense must not be on capital account 3. The expense cannot be a personal or living expense 4. The expense must be reasonable in the circumstances 5. The expense cannot be part of a transaction to which GAAR applies Specific limitations Payments under different acts Political contributions Prepaid expenses Recreational facilities and club dues Recreational property and facilities Club dues Safety deposit box fees Straddle transactions Expenses deductible on Form T2125 Advertising expenses Newspapers Periodicals Broadcasting Online Meals and entertainment Exceptions Conferences and conventions Amounts included in air, train, or bus fares Entertainment expenses at golf clubs Long-haul truck drivers Bad debts Assessing collectibility Interest Interest paid or payable Reasonable rate of interest Funds used Reasonable expectation of income Mortgage interest and home offices Interest deemed paid Financing fees Motor vehicle expenses Definitions of passenger vehicle and automobile Deductible motor vehicle expenses Maximum capital cost allowance on purchased vehicles Maximum deduction for leased vehicles Interest expense Mileage allowances Capital cost allowance Class 14.1 property Private health services plan premiums Conditions for deduction Amount of deduction Other expenses Conventions Disability-related modifications to buildings Disability-related equipment Landscaping Site investigation Utilities service connection Reserves Reserves for goods or services to be provided after year-end Warranty reserves Food, drink, or transportation reserves Prepaid rent reserves Returnable container reserves Reserves for amounts due from the sale of property Doubtful debt reserves Workspace at home Limitation Carryforward of expenses Business losses Internet business activities Selection of business year-end Taxation of farming and fishing income Non-residents Carrying on business in Canada Non-resident actors Annotations Capital cost allowance and eligible capital property What's new for 2017? Overview Purpose Application Current versus capital expenditures CRA's administrative guidelines Asset capitalization threshold Summary Capital cost allowance (CCA) system New rules for eligible capital property Mechanics Eligible depreciable property Listed in a class Ownership Property held by a partnership Available for use Buildings Other properties (including leaseholds) Election for long-term projects Non-arm's length transfers Anti-avoidance rule Exceptions Costs otherwise deductible Specifically disallowed depreciable property Calculation of CCA Formulas Declining-balance classes Other classes Additional allowances Additional allowances – Transitional measures for Class 14.1 General restrictions Half-year rule Exceptions to the half-year rule – Excluded assets Exceptions to the half-year rule – Non-arm's length transactions Short taxation years Separate classes for similar properties Capital cost Meaning of capital cost Special rules Apportionment of cost Cost incurred in foreign currency Property manufactured or produced for own use Deemed capital cost and adjustments to capital cost Property with a dual purpose Change in use of assets Business-use property converted into non-business-use property Non-business-use property converted into business-use property Election not to apply the change-in-use rules Property with change in relative use Property with a change in use from one income-producing purpose to another Non-arm's length transfers Where vendor is a Canadian-resident individual or partnership Where vendor is a corporation or non-resident Eligible capital property – Additional relief for Class 14.1 Potential recapture Death of an individual Passenger vehicles Grant, subsidy, credit, inducement, or other assistance Government assistance Investment tax credit Debt forgiveness GST/HST credits and rebates on depreciable property QST credits on depreciable property Other inducements or reimbursements Townsite costs related to a mine and payments for other prescribed property Trade-ins Gift or bequest Building under construction, renovation, or alteration Election to capitalize borrowing costs Undepreciated capital cost Meaning of undepreciated capital cost Cumulative account Resulting UCC balance UCC balance of Class 14.1 Allocation of total capital cost between properties Opening UCC and amount deemed allowed as CCA Taxation years straddling January 1, 2017 Disposition Meaning of disposition Meaning of proceeds of disposition Involuntary dispositions – Time of disposition and receipt of proceeds Recapture and terminal loss Recapture Temporary negative UCC balance Disposition of eligible capital property on or after January 1, 2017 Acquisition of former eligible capital property from non-arm's length person Replacement property rules Recapture deferral calculation Limited-period franchises, concessions, or licences Terminal loss Depreciable property of a discontinued business Passenger vehicles costing more than the prescribed amount Former business property of another person Class 14.1 asset Transfer of depreciable property from one class to another Disposition of depreciable and non-depreciable property Disposal of land and building in the same year Cost amount Disposal of land and building in different years Suspended loss rules Affiliated persons Application of rules to transferor Triggering events Application of rules to transferee Excluded dispositions Goodwill New rules as of January 1, 2017 Acquisitions and dispositions of goodwill Deemed goodwill – Outlays not relating to property Capital receipts not relating to property Bad debts arising from dispositions of depreciable property Specific CCA restrictions Luxury automobiles Operation of the CCA restriction Definition of passenger vehicle Separate classes, recapture, and terminal loss Transfer of vehicle to non-arm's length parties Joint ownership arrangements Rental properties Operation of the CCA restriction Definition of rental property Expanded definition of rent Leasing properties Operation of the CCA restriction Definition of leasing property Expanded definition of rent Separate class required Specified leasing properties Definition of specified leasing property Expanded definition of rent Separate class required Operation of the CCA restriction Available-for-use rule Anti-avoidance rules Special rules Acquisitions of specified leasing property Other rules Computer tax-shelter properties Definition of computer tax-shelter property Operation of the CCA restriction Separate class required Specified energy properties Definition of specified energy property Exception – Non-arm's length acquisitions Exception – Replacement property Operation of the CCA restriction Separate class required Special CCA rules for lessees Election to capitalize leased property Application of rules Acquisition of leased property Lease-option agreements CCA classes Additions and alterations Non-arm's length transfers Separate classes General rule – Separate businesses Separate class rules Rental property costing less than $50,000 Rental property costing $50,000 or more Multiple-unit residential buildings Passenger vehicles Limited-period franchise, concession, or licence Other assets Separate class elections Outdoor advertising sign Rapidly depreciating electronic equipment Manufacturing or processing property Class 43.1 and 43.2 M&P property Non-residential buildings Transfers between classes Calculation Elections Election to include properties in Class 1 Election to include properties in Class 2, Class 4, or Class 17 Election to include properties in Class 8 Election to include properties in Class 37 Election to make certain transfers – Acquisitions made before or after May 26, 1976 Election to make certain transfers – General rule Election to include properties in Class 1, Class 3, or Class 6 Election not to include properties in Class 44 Election to include properties in Class 35 Five-year rule for Class 8 or Class 43 separate class elections Misclassified properties Eligible capital property (rules applicable before 2017) Overview of the eligible capital property system Eligible capital expenditures Mechanics of the CEC deduction Meaning of CEC Definition of adjustment time Taxation year of an individual Gain on sale of eligible capital property Bad debts arising from dispositions of eligible capital property Specific rules Elections for capital gains treatment Reasons for filing the election Where the election is not available Farm or fishing property How to file the election Deemed taxable capital gain on farm or fishing property Non-arm's length acquisitions of eligible capital property General limitation Limitation where capital gains deduction claimed by transferor Government assistance for eligible capital property Replacement property rules Ceasing to carry on business Deduction of remaining CEC Rollover of remaining CEC Rollover of eligible capital property on death of an individual Annotations Pension and other income Line 113 – Old age security (OAS) pension Non-residents Annotations Line 114 – CPP or QPP benefits Retirement pension Disability benefits Survivor benefits Post-retirement benefit Non-residents Annotations Line 115 – Other pensions or superannuation Superannuation or pension benefits RPPs RRIFs, PRPPs, and annuities Saskatchewan pension plan Foreign Pensions US IRAs and Roth IRAs US social security Non-residents Annotations Line 116 – Elected split-pension amount What's new for 2017? Election to split pension income Benefits of pension splitting Annotations Line 117 – Universal child care benefit What's new for 2017? Overview of the UCCB Eligibility for UCCB Eligible individual Eligible child Inclusion in income – Who must report the UCCB? Two-parent families Single-parent families Repayment of UCCB UCCB amounts for previous years Exclusion of UCCB from the calculation of certain income bases Attribution rules Administration Non-residents Annotations Line 119 – Employment insurance and other benefits Lump-sum payment Quebec parental insurance plan Extension of EI special benefits to self-employed individuals Non-residents Annotations Line 125 – Registered disability savings plan income Contributions RDSP payments Specified disability savings plan Plan termination on cessation of disability tax credit eligibility Non-residents Annotations Line 128 – Support payments received Child support amount Tax treatment Support amount Allowance Periodic basis Tax treatment Non-residents Annotations Line 129 – RRSP income Additional amounts included on Line 129 Spousal or common-law partner RRSP Home buyers' plan and lifelong learning plan Non-residents Annotations Line 130 – Other income What's new for 2017? Apprenticeship incentive grants Death benefits Federal income support grant for parents of murdered or missing children Lump-sum payments received in lieu of health or dental coverage Registered disability savings plan payments Registered education savings plan payments Educational assistance payments Accumulated income payments Retirement compensation arrangements Retiring allowances Restrictive covenants Scholarships, fellowships, and bursaries Awards Award versus employment income Scholarships provided to employees' dependants Fellowships versus research grants Art production grants Prizes Prescribed prizes Scholarship exemption Limitations of scholarship exemption Exemption amount Tax-free savings account payments Tax informant program payments Non-residents Annotations Lines 144 to 147 – Other benefits (workers' compensation, social assistance, net federal supplements) Non-residents Annotations Chapter 3 – Net income deductions Overview Employment income deductions Deductibility Expense amount Line 206 – Pension adjustment Annotations Line 207 – Registered pension plan (RPP) deduction Defined benefit plans Money purchase plans Foreign employer-provided retirement plans Non-residents Annotations Line 212 – Annual union, professional, or like dues Restrictions on deductibility of dues Non-residents Annotations Line 229 – Other employment expenses What's new for 2017? Sales expenses Capital cost allowance Expense claims by commissioned employees Certificate from employer Alternative claim under provisions for salaried employees Travel and lodging expenses Railway employees Relief telegraphers, station agents, and maintenance and repair employees All other railway company employees Calculation of deduction Limitation on meals expense deduction Lodging Certificate from employer Transport employees Calculation of deduction Certificate from employer Travel expenses Condition 1 Condition 2 Condition 3 Reasonable allowance Meal expenses Certificate from employer Motor vehicle travel expenses Types of motor vehicle expenses Deductible portion of expenses Certificate from employer Motor vehicle and aircraft finance costs Capital cost allowance Motor vehicles Aircraft Aircraft costs – Reasonableness test Employee plans and arrangements Teachers' exchange fund contributions CPP, EI, and QPIP contributions Employee retirement compensation arrangement contributions Additional conditions for deduction of RCA contributions Salary reimbursement Reimbursement of disability payments Salary deferral arrangements – Forfeited amounts Employee profit-sharing plans – Forfeited amounts Employee profit-sharing plans – Excess EPSP amounts Artists' expenses Musical instrument costs Capital cost allowance Artists' employment expenses Artistic activity Calculation of available deduction Alternative claim under other paragraphs of section 8 Other expenses Office expenses and salary of an assistant or substitute Office rent Supplies Certificate from employer Home office expenses Certificate from employer Legal expenses of employee Tradespeople's tool expenses Apprentice mechanics' tool costs Eligible apprentice mechanic Eligible tools Amount of deduction for cost of tools Non-residents Annotations Line 231 – Clergy residence deduction Amount of the deduction Rent-free accommodation Residence owned or rented Restriction on deduction Documentation Non-residents Annotations Property income deductions and business investment loss Line 217 – Business investment loss Elected deemed disposition Small business corporation Capital loss Deduction Tax shelters Non-residents Annotations Line 221 – Carrying charges and interest expenses Carrying charges Interest expenses Interest expense planning Non-residents Annotations Line 224 – Exploration and development expenses What's new for 2017? Canadian expenses Canadian exploration expenses (CEE) Canadian development expenses (CDE) Canadian oil and gas property expenses (COGPE) Oil sands expenses Flow-through shares Foreign expenses Foreign exploration and development expenses Limited partners Non-residents Annotations Child care expenses, moving expenses, and other deductions Line 205 – Pooled registered pension plan (PRPP) employer contributions Annotations Line 208 – RRSP/PRPP deduction Overview of registered retirement savings plans Amounts deductible on Line 208 Contribution deadline and carryforward of undeducted contributions RRSP deduction limit for 2017 Unused RRSP deduction room Carryforward of undeducted RRSP contributions Additional RRSP contributions Retiring allowances Lump-sum receipts Home buyers' plan and lifelong learning plan Documentation Non-residents Annotations Line 210 – Deduction for elected split-pension amount What's new for 2017? Election to split pension income Annotations Line 213 – Universal child care benefit repayment What's new for 2017? Annotations Line 214 – Child care expenses Who may claim? Qualifying child care expenses Deduction limits Deduction claimed by the person with the higher net income Deduction claimed by a student Boarding school or camp Documentation Social insurance number Interaction with other deductions or credits Business expenses deduction Disability tax credit Medical expenses tax credit Non-residents Annotations Line 215 – Disability supports deduction Who may claim? Eligibility conditions Eligible disability supports expenses Deduction limits Interaction with other deductions or credits Non-residents Annotations Line 219 – Moving expenses Deduction limits Eligible moving expenses Non-residents Annotations Line 220 – Support payments made Child support amount Tax treatment Support amount Allowance Periodic basis Tax treatment Documentation Non-residents Annotations Line 222 – Deduction for CPP or QPP contributions on self-employment and other earnings What's new for 2017? Maximum contributions Deduction Optional CPP or QPP contributions Non-residents Annotations Line 223 – Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income What's new for 2017? Who may deduct an amount on Line 223? Maximum claimable Calculation of self-employed individual's QPIP premiums Non-residents Annotations Line 232 – Other deductions Split income of a child Refund of RRSP premiums Transfer of RRSP refund of premiums to RRIF or annuity Conversion of RRIF to a life annuity Transfer of amounts relating to a deceased individual to an RDSP Refund of undeducted RRSP contributions Withdrawal of excess transfers from RPP to RRSP, RRIF, PRPP, or SPP Repayment of amounts paid out of RPP in error Decrease in value of unmatured RRSP or RRIF after date of death Depletion allowances Reimbursements of amounts overpaid Legal fees Repayment of shareholder loans Deduction for foreign taxes on income from property (other than real property) Deduction for foreign non-business income tax Non-residents Annotations Line 235 – Social benefits repayment What's new for 2017? Employment insurance benefits Old age security benefits Non-residents Old age security benefits Annotations Net income Line 236 – Net income Non-residents Annotations Chapter 4 – Taxable income Overview Order of applying provisions Retroactive lump-sum payments Losses of other years Line 251 – Limited partnership losses of other years Documentation Non-residents Annotations Line 252 – Non-capital losses of other years Farm losses Restricted farm loss Debt forgiveness rules Non-residents Annotations Line 253 – Net capital losses of other years Net capital loss Applying the losses Non-residents Annotations Capital gains deduction Line 254 – Capital gains deduction Calculation of the capital gains deduction Non-residents Annotations Security options and other deductions Line 244 – Canadian Forces personnel and police deduction What's new for 2017? Deduction limit Administration Non-residents Annotations Line 248 – Employee home relocation loan deduction What's new for 2017? Non-residents Annotations Line 249 – Security options deductions Underwater options Cashout of security options Deferral of the security options benefits (before 4:00 p.m. EST, March 4, 2010) Donation of securities acquired under a security option plan Other deductions Non-residents Annotations Line 250 – Other payments deduction Limits Non-residents Annotations Line 255 – Northern residents deductions Travel benefit deduction Residency deduction Non-residents Annotations Line 256 – Additional deductions Income exempt under a tax treaty Vow of perpetual poverty Adult basic education tuition assistance Employees of prescribed international organizations Annotations Chapter 5 – Federal non-refundable tax credits Overview Claiming order Transfer of credits Applicable rate Indexation Provincial and territorial equivalents Non-residents Part-year residents Non-residents (including non-residents electing under section 216.1) Non-resident electing under section 217 Personal amounts and adoption expenses Line 300 – Basic personal amount What's new for 2017? Indexation Non-residents Annotations Line 301 – Age amount What's new for 2017? Eligibility Indexation Non-residents Annotations Line 303 – Spouse or common-law partner amount What's new for 2017? Common-law partnership Same-sex couples Limitations Election to transfer dividend income to spouse Canada caregiver amount Indexation Transfer of credits Documentation Non-residents Annotations Line 304 – Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older (new for 2017) Calculating the Canada caregiver amount Higher amount Lower amount Top-up amount Limitations Indexation Documentation Non-residents Annotations Line 305 – Amount for an eligible dependant What's new for 2017? Limitations Eligible dependant Conditions for application Canada caregiver amount Indexation Documentation Non-residents Annotations Line 306 – Amount for infirm dependants age 18 or older (eliminated as of 2017) What's new for 2017? Dependant Limitations Documentation Non-residents Annotations Line 307 – Canada caregiver amount for other infirm dependants age 18 or older (new for 2017) Dependant Limitations Indexation Documentation Non-residents Annotations Line 313 – Adoption expenses What's new for 2017? Who may claim? When to claim? Eligible adoption expenses Deduction limits Indexation Documentation Non-residents Annotations Line 367 – Canada caregiver amount for infirm children under 18 years of age What's new for 2017? Who may claim? Where child resides together with parents Where child does not reside together with more than one parent Limitations Documentation to claim the credit Indexation Transfer of the amount Non-residents Annotations Disability amounts Line 315 – Caregiver amount (eliminated as of 2017) What's new for 2017? Dependant Limitations Family caregiver amount Indexation Documentation Non-residents Annotations Line 316 – Disability amount (for self) What's new for 2017? Eligibility requirements Prolonged impairment Marked restriction Equivalent to marked restriction Basic activities of daily living Supplement for persons under 18 Limitation Transfer Documentation Registered disability savings plans Non-residents Annotations Line 318 – Disability amount transferred from a dependant What's new for 2017? Who may claim? Limitations Documentation Non-residents Annotations Medical expenses What's new for 2017? Line 330 – Medical expenses for self, spouse or common-law partner, and dependent children born in 1999 or later Interactions with disability-related tax measures Interaction with lump-sum payments received in lieu of health or dental coverage Indexation Non-residents Line 331 – Allowable amount of medical expenses for other dependants Interactions with disability-related measures Indexation Non-residents Allowable medical expenses Attendant care and care in an establishment Nursing home care School or institution care Remuneration for care Full-time attendant care at home Group home care Full-time attendant care outside a self-contained domestic establishment Attendant care not claimed under any of the above provisions Reproductive technologies Bone marrow or organ transplant – Related costs Specially trained animals and related expenses Transportation services and travel expenses Annotations Student-related credits Line 319 – Interest paid on student loans Qualifying loans Who may claim? Five-year carryover Documentation Non-residents Annotations Line 323 – Tuition, education, and textbook amounts What's new for 2017? Tuition amount Overview What qualifies as tuition? Ancillary fees Statutory exclusions Eligible and non-eligible fees Occupational, trade, or professional examination fees Timing of payment Criteria for tuition credit Canadian educational institution Foreign university Commuters to the United States Education amount (2016 and earlier taxation years) Overview Qualifying and specified educational programs Designated educational institution Textbook amount (2016 and earlier taxation years) Transfer and carryforward of unused tuition amount Documentation Requirement to issue forms Rules where financial assistance provided Deemed residents Non-residents Annotations Line 324 – Tuition amount transferred from a child What's new for 2017? Non-residents Annotations Donations and gifts Line 349 – Donations and gifts What's new for 2017? First-time donor's super credit Gifts Eligible amount of gift Amount of advantage Nominal advantage Determination of intention to give Deemed fair market value for purposes of calculating the eligible amount of a gift Gifts in kind Donations of publicly listed securities Donations of publicly listed flow-through shares Donations of recently purchased property Tax shelter gifting arrangements Returned properties Gifts of cultural property Ecological gifts Foreign gifts Gifts by commuters Documentation Non-residents Annotations Federal dividend tax credit Line 425 – Federal dividend tax credit What's new for 2017? Documentation Non-residents Annotations Other non-refundable credits Line 308 – CPP or QPP contributions through employment What's new for 2017? Overcontributions Additional contributions Non-residents Annotations Line 310 – CPP or QPP contributions on self-employment and other earnings What's new for 2017? Optional CPP and QPP contributions Non-residents Annotations Line 312 – Employment insurance premiums through employment What's new for 2017? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Line 314 – Pension income amount What's new for 2017? Eligible pension income Foreign pensions Elected split-pension income Computation Non-residents Annotations Line 317 – Employment insurance premiums on self-employment and other eligible earnings What's new for 2017? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Line 326 – Amounts transferred from a spouse or common-law partner Non-residents Annotations Line 362 – Volunteer firefighters' amount Amount of the tax credit Eligible volunteer firefighting services Eligible search and rescue volunteer services Documentation Interaction between the tax credit and the tax exemption Non-residents Annotations Line 363 – Canada employment amount What's new for 2017? Indexation Non-residents Annotations Line 364 – Public transit amount What's new for 2017? Who may claim? Eligible public transit pass and eligible electronic payment card – Additional conditions Limits Documentation Non-residents Annotations Line 369 – Home buyers' amount Who may claim? Qualifying home Non-residents Annotations Line 370 – Children's arts amount (eliminated as of 2017) What's new for 2017? Amount of the tax credit Apportionment of credit Eligible program of artistic, cultural, recreational, or developmental activity Eligible expenses Children with disabilities Documentation Non-residents Annotations Line 375 – Provincial parental insurance plan (PPIP) premiums paid What's new for 2017? Who may claim an amount on Line 375? Maximum claimable Calculation of employee's QPIP premiums Non-residents Annotations Line 376 – PPIP premiums payable on employment income What's new for 2017? Who may claim an amount on Line 376? Maximum claimable Calculation of employee's QPIP premiums Non-residents Annotations Line 378 – PPIP premiums payable on self-employment income What's new for 2017? Who may claim an amount on Line 378? Maximum claimable Calculation of self-employed individual's QPIP premiums Non-residents Annotations Line 395 – Search and rescue volunteers' amount Amount of the tax credit Eligible search and rescue volunteer services Eligible volunteer firefighting services Documentation Interaction between the tax credit and the tax exemption Non-residents Annotations Line 398 – Home accessibility tax credit Who may claim? Qualifying individual Eligible individual Eligible dwelling Qualifying expenditures and qualifying renovations Expenses incurred by a condominium corporation, trust, etc. Interaction with medical expenses tax credit Documentation Non-residents Annotations Line 405 – Federal foreign tax credit Foreign non-business-income tax credit Foreign-source income Tax-exempt income Foreign business-income tax credit Business-income tax Foreign-source business income Administration Non-residents Annotations Lines 409 and 410 – Federal political contribution tax credit Annotations Line 412 – Investment tax credit What's new for 2017? Expenditures qualifying for an ITC Qualified property Apprenticeship expenditures Eligible child care space expenditures Qualified expenditures in respect of SR&ED Renounced eligible exploration expenses Computing the ITC Claiming the ITC Carryover period for ITCs Claiming a refund Reduction of the capital cost of property Recapture of ITCs Non-residents Annotations Lines 413 and 414 – Labour-sponsored funds tax credit What's new for 2017? Non-residents Annotations Line 427 – Minimum tax carryover Annotations Line 445 – Section 217 tax adjustment Annotations Federal logging tax credit Income for the year from logging operations Reporting Non-residents Annotations Chapter 6 – Federal tax payable or refundable Overview Net federal tax Federal tax calculation – Brackets and rates What's new for 2017? Non-residents Annotations Line 424 – Tax on split income What's new for 2017? Proposals to expand application of tax on split income Specified individual Split income Federal tax payable Joint liability Annotations Surtax for non-residents and deemed residents of Canada Federal tax otherwise payable Income not earned in a province Residents Annotations Recapture of investment tax credit What's new for 2017? Reporting Annotations Minimum tax Liability Computation of AMT Adjusted taxable income Tax credits Foreign tax credit Federal tax on split income AMT carryforward Annotations Line 415 – Working income tax benefit advance payments Reporting Non-residents Annotations Line 418 – Special taxes Additional tax on RESP accumulated income payments Calculation of the additional tax Reduction of the amount of AIPs subject to the additional tax Documentation Non-residents Tax on excess employee profit-sharing plan (EPSP) amounts Specified employee Excess EPSP amount Calculation of the special tax payable on excess EPSP amounts Waiver or cancellation Filing and payment of tax Tax related to the non-purchase of replacement shares in a Quebec labour-sponsored fund Annotations Social benefits repayment and additional contributions Line 421 – CPP contributions payable on self-employment and other earnings What's new for 2017? Non-residents Annotations Line 422 – Social benefits repayment What's new for 2017? Old age security benefits Calculation of the repayment Adjusted income Withholding Employment insurance benefits Calculation of the repayment Adjusted income Non-residents OAS benefits Calculation Withholding Countries whose residents are not required to file Form T1136 Annotations Line 430 – Employment insurance premiums payable on self-employment and other eligible earnings What's new for 2017? Calculation of EI premiums on self-employment income Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Abatement, refundable credits, rebates, tax paid, and overpayments Line 437 – Total income tax deducted Non-residents Annotations Line 438 – Tax transfer for residents of Quebec Annotations Line 440 – Refundable Quebec abatement Federal tax otherwise payable Income earned in Quebec Non-residents Annotations Line 441 – Federal refundable First Nations abatement (on T1 return for Yukon residents) What's new for 2017? Non-residents Annotations Line 448 – CPP overpayment What's new for 2017? Non-residents Annotations Line 450 – Employment insurance overpayment What's new for 2017? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Net EI overpayment (Line 451 of the T1 return for Quebec residents) Non-residents Annotations Line 452 – Refundable medical expense supplement What's new for 2017? Reduction Adjusted family net income Non-residents Annotations Line 453 – Working income tax benefit What's new for 2017? Eligibility requirements Common requirements Eligible dependant Basic WITB Eligible spouse Working income Adjusted net income WITB disability supplement Calculation of the WITB Basic WITB WITB disability supplement Indexation Prepayment Non-residents Annotations Line 454 – Refund of investment tax credit What's new for 2017? Non-residents Annotations Line 456 – Part XII.2 trust tax credit Annotations Line 457 – Employee and partner GST/HST rebate Employees Restrictions Harmonized sales tax (HST) Quebec sales tax (QST) Partners Documentation Annotations Lines 458 and 459 – Children's fitness tax credit (eliminated as of 2017) What's new for 2017? Amount of the tax credit Apportionment of credit Eligible program of physical activity Eligible fees Children with disabilities Documentation Non-residents Annotations Lines 468 and 469 – Eligible educator school supply tax credit Amount of the tax credit Eligible educator Eligible supplies expenses Documentation Certificate from employer or delegated official Non-residents Annotations Line 476 – Tax paid by instalments Annotations Refund or balance owing Line 484 – Refund Annotations Line 485 – Balance owing Annotations Chapter 7 – Provincial and territorial tax What's new for 2017? Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon Overview Provincial or territorial tax on income Non-refundable tax credits Foreign tax credit Tax on split income Minimum tax Liability for provincial or territorial tax Line 428 – Provincial or territorial tax Non-residents Annotations Line 479 – Provincial or territorial credits Non-residents Annotations Newfoundland and Labrador T1 5001-C – NL 428 – Newfoundland and Labrador Tax and Credits T1 5001-D – Provincial Worksheet – Newfoundland and Labrador T1 5001-PC – Information for Residents of Newfoundland and Labrador T1 5001-R – T1 General 2017 – Income Tax and Benefit Return – Newfoundland and Labrador Only T1 5001-S2 – Schedule NL(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5001-S11 – Schedule NL(S11) – Provincial Tuition and Education Amounts Prince Edward Island T1 5002-C – PE 428 – Prince Edward Island Tax and Credits T1 5002-D – Provincial Worksheet – Prince Edward Island T1 5002-PC – Information for Residents of Prince Edward Island T1 5002-S2 – Schedule PE(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5002-S11 – Schedule PE(S11) – Provincial Tuition and Education Amounts Nova Scotia T1 5003-C – NS 428 – Nova Scotia Tax and Credits T1 5003-D – Provincial Worksheet – Nova Scotia T1 5003-PC – Information for Residents of Nova Scotia T1 5003-S2 – Schedule NS(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5003-S11 – Schedule NS(S11) – Provincial Tuition and Education Amounts New Brunswick T1 5004-C – NB 428 – New Brunswick Tax and Credits T1 5004-D – Provincial Worksheet – New Brunswick T1 5004-PC – Information for Residents of New Brunswick T1 5004-S2 – Schedule NB(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5004-S11 – Schedule NB(S11) – Provincial Tuition and Education Amounts T1 5004-S12 – Schedule NB(S12) – New Brunswick Seniors' Home Renovation Tax Credit Quebec Federal Income Tax T1 5005-D1 – Federal Worksheet – Quebec T1 5005-PC – Information for Residents of Quebec T1 5005-R – T1 General 2017 – Income Tax and Benefit Return – Quebec Only T1 5005-S1 – Schedule 1 – Federal Tax – Quebec T1 5005-S2 – Schedule 2 – Federal Amounts Transferred From Your Spouse or Common-Law Partner – Quebec T1 5005-S6 – Schedule 6 – Working Income Tax Benefit – Quebec T1 5005-S8 – Schedule 8 – QPP Contributions on Self-Employment and Other Earnings – Quebec T1 5005-S10 – Schedule 10 – Employment Insurance (EI) and Provincial Parental Insurance Plan (PPIP) Premiums – Quebec T1 5005-S11 – Schedule 11 – Tuition, Education, and Textbook Amounts – Quebec T1 5005-S13 – Schedule 13 – Employment Insurance Premiums on Self-Employment and Other Eligible Earnings – Quebec Quebec Income Tax TP-1.D – Income Tax Return TP-1.D.A – Schedule A: Amount for Dependants and Amount Transferred by a Child Pursuing Studies TP-1.D.B – Schedule B: Tax Relief Measures TP-1.D.C – Schedule C: Tax Credit for Childcare Expenses TP-1.D.D – Schedule D: Solidarity Tax Credit TP-1.D.E – Schedule E: Tax Adjustments and Credits TP-1.D.F – Schedule F: Contribution to the Health Services Fund TP-1.D.G – Schedule G: Capital Gains and Losses TP-1.D.H – Schedule H: Tax Credit for Caregivers TP-1.D.I – Schedule I: Additional Contribution for Subsidized Educational Childcare TP-1.D.J – Schedule J: Tax Credit for Home-Support Services for Seniors TP-1.D.K – Schedule K: Premium Payable Under the Québec Prescription Drug Insurance Plan TP-1.D.L – Schedule L: Business Income TP-1.D.M – Schedule M: Interest Paid on a Student Loan TP-1.D.N – Schedule N: Adjustment of Investment Expenses TP-1.D.O – Schedule O: Tax Credit for Respite of Caregivers TP-1.D.P – Schedule P: Tax Credits Respecting the Work Premium TP-1.D.Q – Schedule Q: Retirement Income Transferred to Your Spouse TP-1.D.R – Schedule R: Québec Parental Insurance Plan (QPIP) Premium TP-1.D.S – Schedule S: Amount Transferred by a Child 18 or Over Enrolled in Post-Secondary Studies TP-1.D.T – Schedule T: Tax Credit for Tuition or Examination Fees TP-1.D.V – Schedule V: Tax Credits for Donations and Gifts TP-1.D.GR – Work Charts TP-1.G – Guide to the Income Tax Return TP-1.R – Request for an Adjustment to an Income Tax Return Ontario T1 5006-C – ON 428 – Ontario Tax T1 5006-D – Provincial Worksheet – Ontario T1 5006-PC – Information for Residents of Ontario T1 5006-R – T1 General 2017 – Income Tax and Benefit Return – Ontario Only T1 5006-S2 – Schedule ON(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5006-S11 – Schedule ON(S11) – Provincial Tuition and Education Amounts T1 5006-TC – ON 479 – Ontario Credits T1 5006-TG – ON-BEN – Application for the 2018 Ontario Trillium Benefit and the Ontario Senior Homeowners' Property Tax Grant Manitoba T1 5007-A – MB 428-A – Manitoba Family Tax Benefit T1 5007-C – MB 428 – Manitoba Tax T1 5007-D – Provincial Worksheet – Manitoba T1 5007-PC – Information for Residents of Manitoba T1 5007-S2 – Schedule MB(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5007-S11 – Schedule MB(S11) – Provincial Tuition and Education Amounts T1 5007-TC – MB 479 – Manitoba Credits Saskatchewan T1 5008-C – SK 428 – Saskatchewan Tax T1 5008-D – Provincial Worksheet – Saskatchewan T1 5008-PC – Information for Residents of Saskatchewan T1 5008-S2 – Schedule SK(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5008-S11 – Schedule SK(S11) – Provincial Tuition and Education Amounts Alberta T1 5009-C – AB 428 – Alberta Tax and Credits T1 5009-D – Provincial Worksheet – Alberta T1 5009-PC – Information for Residents of Alberta T1 5009-S2 – Schedule AB(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5009-S6 – Schedule 6 – Working Income Tax Benefit – Alberta T1 5009-S11 – Schedule AB(S11) – Provincial Tuition and Education Amounts British Columbia T1 5010-C – BC 428 – British Columbia Tax T1 5010-D – Provincial Worksheet – British Columbia T1 5010-PC – Information for Residents of British Columbia T1 5010-R – T1 General 2017 – Income Tax and Benefit Return – British Columbia Only T1 5010-S2 – Schedule BC(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5010-S6 – Schedule 6 – Working Income Tax Benefit – British Columbia T1 5010-S11 – Schedule BC(S11) – Provincial Tuition and Education Amounts T1 5010-S12 – Schedule BC(S12) – British Columbia Seniors Home Renovation Tax Credit T1 5010-TC – BC 479 – British Columbia Credits Yukon Territory T1 5011-C – YT 428 – Yukon Tax T1 5011-C1 – YT 432 – Yukon First Nations Tax T1 5011-D – Territorial Worksheet – Yukon T1 5011-PC – Information for Residents of Yukon T1 5011-R – T1 General 2017 – Income Tax and Benefit Return – Yukon Only T1 5011-S2 – Schedule YT(S2) – Territorial Amounts Transferred From Your Spouse or Common-Law Partner T1 5011-S11 – Schedule YT(S11) – Territorial Tuition, Education, and Textbook Amounts T1 5011-TC – YT 479 – Yukon Credits Northwest Territories T1 5012-C – NT 428 – Northwest Territories Tax T1 5012-D – Territorial Worksheet – Northwest Territories T1 5012-PC – Information for Residents of Northwest Territories T1 5012-R – T1 General 2017 – Income Tax and Benefit Return – Northwest Territories Only T1 5012-S2 – Schedule NT(S2) – Territorial Amounts Transferred From Your Spouse or Common-Law Partner T1 5012-S11 – Schedule NT(S11) – Territorial Tuition and Education Amounts T1 5012-TC – NT 479 – Northwest Territories Credit Nunavut T1 5014-C – NU 428 – Nunavut Tax T1 5014-D – Territorial Worksheet – Nunavut T1 5014-PC – Information for Residents of Nunavut T1 5014-S2 – Schedule NU(S2) – Territorial Amounts Transferred From Your Spouse or Common-Law Partner T1 5014-S6 – Schedule 6 – Working Income Tax Benefit – Nunavut T1 5014-S11 – Schedule NU(S11) – Territorial Tuition, Education, and Textbook Amounts T1 5014-TC – NU 479 – Nunavut Credits Other T1206 – Tax on Split Income T2036 – Provincial or Territorial Foreign Tax Credit T2203 – Provincial and Territorial Taxes for 2017 – Multiple Jurisdictions Chapter 8 – Quebec provincial income tax What's new for 2017? Overview Taxation of Quebec residents Federal and Quebec tax systems – Main differences Employment income Pension income transferred to or from a spouse Rental income Annual union or professional dues Child care expenses Eligible child care expenses Maximum amounts of eligible expenses Credit calculation Carrying charges and interest expenses Security options deductions Strategic investments Spouse or common-law partner Amount for eligible dependant Amount for children (and other dependants) Child under 18 enrolled in post-secondary studies Amount transferred by a child 18 or over enrolled in post-secondary studies Other dependants Amount for single-parent family Amount for retirement income Donations and gifts Additional tax credit for large cultural donations Tax credit for cultural patronage Political contributions Medical expenses Canada employment amount Public transit passes Adoption expenses Caregiver amount Tuition fees Taxation of dividends Amount for a person living alone Amount for children's fitness Children's arts amount Eligible educator school supplies credit Tax credit for workers 63 or older Amount for recent graduates working in remote resource regions Additional subsidized child care contribution Registration fee for the Quebec enterprise register Contribution to the health services fund Premium payable under the Quebec prescription drug insurance plan (for individuals without a private group insurance plan) Tax credit for treatment of infertility Tax credit for home-support services for seniors Who is eligible? Amount of the credit Eligible expenses Independent living tax credit for seniors Work premium tax credits Tax credit for respite expenses of informal caregivers Tax credit for volunteer respite services Amount for first-time home buyers Solidarity tax credit Tax credit for eco-friendly home renovation Tax credit for the activities of seniors Tax shield credit Other deductions and tax credits Taxable income deductions Refundable tax credits TP-1 annotations Total income (Lines 96 to 164) Line 96 — Canada Pension Plan (CPP) contribution Line 96.1 — Pensionable earnings under the Canada Pension Plan (CPP) Line 97 — Québec parental insurance plan (QPIP) premium Line 98 — Québec Pension Plan (QPP) contribution Line 98.1 — Pensionable salary or wages under the Québec Pension Plan (QPP) Line 101 — Employment income Line 102 — Taxable benefit on which no QPP contribution was withheld Line 105 — Correction of employment income Line 107 — Other employment income Line 107, Code 01 — Tips not included on the RL-1 slip Line 107, Code 02 — Wage loss replacement benefits (box O of the RL-1 slip) Line 107, Code 03 — Amounts allocated or paid under a profit-sharing plan Line 107, Code 04 — GST and QST rebates Line 107 — Optional contributions to the Québec Pension Plan Line 110 — Parental insurance benefits Line 111 — Employment insurance benefits Line 114 — Old age security pension Line 119 — Québec Pension Plan (QPP) or Canada Pension Plan (CPP) benefits Line 122 — Payments from a pension plan, a RRSP, a RRIF, a DPSP or a PRPP/VRSP, or annuities Line 123 — Retirement income transferred by your spouse Line 128 — Taxable amount of dividends from taxable Canadian corporations Line 130 — Interest and other investment income Line 136 — Rental income Line 139 — Taxable capital gains Line 142 — Support payments received Line 147 — Social assistance payments and similar financial assistance Line 148 — Income replacement indemnities (Codes 01 to 06) Line 148 — Net federal supplements (Code 07) Line 154 — Other income Line 154, Code 01 — Scholarships and bursaries (box O of the RL-1 slip) Line 154, Code 02 — Income supplement received under a government work-incentive project (box O of the RL-1 slip) Line 154, Code 03 — Other income (box O of the RL-1 slip) Line 154, Code 04 — Refund of unused RRSP or PRPP/VRSP contributions Line 154, Code 05 — Recovery of a deduction for contributions to a spousal RRSP Line 154, Code 06 — Other income (box C of the RL-2 slip) Line 154, Code 07 — Other income (boxes D, E, G, H and K of the RL-2 slip) Line 154, Code 08 — Other income (boxes B and G of the RL-16 slip) Line 154, Code 09 — Withdrawals from an RRSP under the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP) (boxes L and O of the RL-2 slip) Line 154, Code 10 — Amounts not repaid under the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP) Line 154, Code 11 — Recovery of resource deductions Line 154, Code 12 — Wage Earner Protection Program (WEPP) payments Line 154, Code 13 — Recovery of deductions for the purchase of tools Line 164 — Business income Net income (Lines 201 to 260) Line 201 — Deduction for workers Line 205 — Registered pension plan (RPP) deduction Line 207 — Employment expenses and deductions Line 214 — RRSP or PRPP/VRSP deduction Line 225 — Support payments made (deductible amount) Line 228 — Moving expenses Line 231 — Carrying charges and interest expenses Line 234 — Business investment loss Line 236 — Deduction for residents of designated remote areas Line 241 — Deduction for exploration and development expenses Line 245 — Deduction for retirement income transferred to your spouse at December 31 Line 246 — Deduction for a repayment of amounts overpaid to you Line 248 — Deduction for QPP contributions Line 248 — Deduction for the QPIP premium Line 250 — Other deductions Line 250, Code 03 — Deduction for a social benefits repayment Line 250, Code 04 — Deduction for amounts transferred to a RPP, a RRSP, a RRIF, a PRPP/VRSP or an annuity Line 250, Code 05 — Deduction for an amount already included in income (RRSP or RRIF) Line 250, Code 06 — Deduction for a refund of unused RRSP or PRPP/VRSP contributions Line 250, Code 07 — Disability supports deduction Line 250, Code 08 — Deduction for legal fees Line 250, Code 09 — Deduction for Québec exploration expenses that give entitlement to an additional deduction Line 250, Code 11 — Deduction for the purchase of an income-averaging annuity for artists Line 250, Code 12 — Deduction for a repayment of support Line 250, Code 14 — Deduction for a loss in the value of investments in an RRSP, a RRIF or a PRPP/VRSP Line 250, Code 15 — Deduction for the repayment of a QESI amount Line 250, Code 16 — Deduction for amounts transferred to a registered disability savings plan (RDSP) Line 252 — Carry-over of the adjustment of investment expenses Line 260 — Adjustment of investment expenses Taxable income (Lines 276 to 297) Line 276 — Adjustment of deductions Line 278 — Universal Child Care Benefit and income from a registered disability savings plan (RDSP) Line 287 — Deductions for strategic investments Line 289 — Non-capital losses from other years Line 290 — Net capital losses from other years Line 292 — Capital gains deduction Line 293 — Deduction for an Indian Line 295 — Deductions for certain income Line 297 — Miscellaneous deductions Line 297, Code 01 — Deduction for a home-relocation loan Line 297, Code 02 — Security option deduction Line 297, Code 03 — Deduction for foreign researchers Line 297, Code 04 — Deduction for foreign experts Line 297, Code 05 — Deduction for foreign researchers on a post-doctoral internship Line 297, Code 06 — Deduction for foreign specialists Line 297, Code 07 — Deduction for foreign producers or foreign individuals holding a key position in a foreign production filmed in Québec Line 297, Code 08 — Deduction for employment income earned on a vessel Line 297, Code 09 — Deduction for employees of an international financial centre (IFC) Line 297, Code 12 — Deduction for income exempt under a tax treaty Line 297, Code 13 — Deduction for share and security issue expenses related to Québec resources Line 297, Code 14 — Deduction for employees of certain international organizations Line 297, Code 16 — Deduction for copyright income Line 297, Code 17 — Deduction for shares received in exchange for mining property Line 297, Code 19 — Deduction for foreign professors Line 297, Code 20 — Deduction for foreign farm workers Line 297, Code 21 — Income-averaging deduction for forest producers Line 297, Code 22 — Deduction for patronage dividends received from a cooperative Line 297, Code 23 — Canadian Forces personnel and police deduction Line 297, Code 24 — Deduction for a repayment of the Universal Child Care Benefit Line 297, Code 25 — Deduction for a repayment of income from a registered disability savings plan (RDSP) Non-refundable tax credits (Lines 350 to 398.1) Line 350 — Basic Personal Amount Line 358 — Adjustment for income replacement indemnities Line 361 — Age amount, amount for a person living alone and amount for retirement income Line 367 — Amount for dependants and amount transferred by a child 18 or over enrolled in post-secondary studies Line 376 — Amount for a severe and prolonged impairment in mental or physical functions Line 378 — Expenses for medical services not available in your area Line 381 — Medical expenses Line 385 — Interest paid on a student loan Line 390 — Tax credit for volunteer firefighters and search and rescue volunteers Line 391 — Tax credit for workers 63 or older Line 392 — Tax credit for recent graduates working in remote resource regions Line 395 — Tax credits for donations and gifts Line 397 — Tax credit for union, professional or other dues Line 398 — Tax credit for tuition or examination fees Line 398.1 — Tax credit for tuition or examination fees transferred by a child Income tax and contributions (Lines 401 to 447) Line 401 — Income tax on taxable income Line 402 — Tax adjustment for a single payment accrued to December 31, 1971 (Schedule E) Line 409 — Foreign tax credit (Schedule E) Line 411 — Tax credit for the beneficiary of a designated trust (Schedule E) Line 414 — Tax credit for contributions to authorized Québec political parties Line 415 — Dividend tax credit Line 422 — Tax credit for the acquisition of Capital régional et coopératif Desjardins shares Line 424 — Tax credit for a labour-sponsored fund Line 431 — Credits transferred from one spouse to the other Line 432 — Alternative minimum tax carry-over, alternative minimum tax and deduction for logging tax Line 434 — Additional contribution for subsidized educational childcare Line 438 — Annual registration fee for the enterprise register Line 439 — Québec parental insurance plan (QPIP) premium on income from self-employment or employment outside Québec Line 441 — Advance payments of tax credits Line 443 — Special taxes and tax adjustment Line 445 — Québec Pension Plan (QPP) contribution on income from self-employment Line 446 — Contribution to the health services fund Line 447 — Premium payable under the Québec prescription drug insurance plan Refund or balance due (Lines 451 to 479) Line 451 — Québec income tax withheld at source Line 451.1 — Amount from line 58 of your Schedule Q Line 451.3 — Québec income tax withholding transferred by your spouse Line 452 — Québec Pension Plan (QPP) or Canada Pension Plan (CPP) overpayment Line 453 — Income tax paid in instalments Line 454 — Transferable portion of the income tax withheld for another province Line 455 — Tax credit for child-care expenses Line 456 — Tax credits respecting the work premium Line 457 — Québec parental insurance plan (QPIP) overpayment Line 458 — Tax credit for home-support services for seniors Line 459 — QST rebate for employees and partners Line 460 — Tax shield Line 462 — Other credits Line 462, Code 01 — Refundable tax credit for medical expenses Line 462, Code 02 — Tax credit for caregivers Line 462, Code 03 — Tax credit for taxi drivers and taxi owners Line 462, Code 05 — Property tax refund for forest producers Line 462, Code 06 — Tax credit for adoption expenses Line 462, Code 07 — Tax credit for an on-the-job training period Line 462, Code 08 — Tax credit for the repayment of benefits Line 462, Code 09 — Tax credit for income tax paid by an environmental trust Line 462, Code 10 — Tax credit for the reporting of tips Line 462, Code 11 — Tax credit for the treatment of infertility Line 462, Code 15 — Tax credit for scientific research and experimental development Line 462, Code 18 — Tax credit for a top-level athlete Line 462, Code 19 — Tax credit for income from an income-averaging annuity for artists Line 462, Code 20 — Tax credit for volunteer respite services Line 462, Code 21 — Tax credit for respite of caregivers Line 462, Code 24 — Independent living tax credit for seniors Line 462, Code 25 — Tax credit for children's activities Line 462, Code 28 — Tax credit for seniors' activities Line 462, Code 29 — Grant for seniors to offset a municipal tax increase Line 462, Code 30 — Tax credit for interest on a loan granted by a seller-lender and guaranteed by La Financière agricole du Québec Line 462, Code 32 — RénoVert tax credit Line 462, Code 33 — Tax credit for the upgrading of residential waste water treatment systems Line 462, Code 34 — Tax credit for the restoration of a secondary residence Line 466 — Financial compensation for home-support services Line 474 — Refund Line 475 — Balance due Line 478 — Refund Line 479 — Balance due TP-1 – Guide to the Income Tax Return Chapter 9 – Special situations and tax planning Overview Family tax matters What's new for 2017? Income and capital gains splitting Proposals to limit income splitting after 2017 Attribution rules Income attribution Tax on split income (kiddie tax) Capital gains attribution Income-splitting planning ideas Putting a prescribed rate loan in place Income splitting through a spousal RRSP Tax-free and tax-deferred savings (other than retirement savings) Tax-free savings accounts Overcontributions Tax on non-resident contributions Tax on prohibited or non-qualified investments held by a TFSA trust Tax on advantages Integration with other registered savings TFSA tips Registered education savings plans Canada learning bond RESP anti-avoidance rules Registered disability savings plans Eligibility Contributions RDSP investments anti-avoidance rules Tax-free rollover of amounts to an RDSP Payments RDSP election for beneficiaries with a shortened life expectancy Taxation Elder care – Assistance and credits Disability tax credit Canada caregiver credit Home accessibility tax credit Attendant care or nursing home care Full-time care Part-time care Student-related planning, assistance, deductions, and credits Benefits of filing a T1 return Student loans and lines of credit RESPs Employment income Scholarships Student expenses – Deductions and tax credits Tuition and related tax credits Transfer of unused tuition tax credits Child care expenses Moving expenses Public transit costs RRSPs – Benefit of compounding Accommodation Tax considerations on marital breakdown Attribution rules Support payments Professional fees Tax credits and deduction for child care Retirement planning What's new for 2017? Registered pension plans Individual pension plans Deferred profit-sharing plans Registered retirement savings plans Timing for RRSP contributions RRSP deduction limit RRSP deduction limit for 2017 Unused RRSP deduction room Carryforward of undeducted RRSP contributions Determination of earned income Additional RRSP contributions Retiring allowances Lump-sum receipts RRSP overcontributions Transferring between plans Withdrawal of funds before retirement Maturity of an RRSP Maturity options Locked-in plans Enhanced anti-avoidance rules for RRSPs and RRIFs Non-qualified investments Prohibited investments Advantage tax Filing requirements Waiver of tax payable Pooled registered pension plans Financing retirement – Additional options Retiring allowance Retirement compensation arrangement Anti-avoidance rules for RCAs Estate planning What's new for 2017? Overview Proposals to limit income splitting after 2017 Testamentary trusts – 2016 tax changes Wills Alter ego and joint spousal or common-law partner trusts Estate freezes When to implement a freeze When to implement a refreeze Other planning opportunities from a freeze Estate administration tax – Probate Inter vivos gifts Life insurance Charitable planned giving The 21-year trust rule US tax considerations for Canadians What's new for 2017? Substantial presence test Closer connection test US rental property Sale of US real property Claiming dependants on US tax returns US estate tax Single-purpose corporation for US real property Canadians working in the United States State taxes Deceased persons What's new for 2017? Overview Testamentary trusts – 2016 tax changes Terminal-year filing requirements Filing deadlines – Terminal return Filing deadlines – Prior-year return Payment deadlines Summary of important tax filing and payment dates for the terminal year Filing-due dates Terminal return Optional returns Prior-year returns Balance of tax owing – Due dates Terminal return and each optional return, irrespective of their filing-due dates Prior-year returns Computation of income Periodic payments Deduction of expenses accrued but not due on death Rights or things Inclusion in terminal return Return for rights or things Transfer to beneficiary Business income Income from trusts Deemed disposition of property at death Exceptions to the general deemed disposition rule Capital property Non-depreciable property Depreciable property Farming or fishing property Class 14.1 depreciable property/eligible capital property Partnership rights Relieving rules Principal residence Capital gains exemption Deferred income plans Registered retirement savings plans (RRSPs) Unmatured plans Refund of premiums Post-death decrease in value of RRSP Matured plans RRSP contributions RRSP home buyers' plan and lifelong learning plan Registered retirement income funds (RRIFs) Post-death decrease in value of RRIF Registered pension plans (RPPs) Deferred profit-sharing plans (DPSPs) Pooled registered pension plans (PRPPs) Registered disability savings plans (RDSPs) Tax-free savings accounts (TFSAs) Employee stock options owned at death Reserves in the terminal year Capital losses in the terminal year Computation of tax – Personal credits and deductions Medical expenses Charitable donations Carryback of losses from estate's first taxation year Shares of corporation – Special considerations Testamentary transfers of property to a spouse, common-law partner, or spouse or common-law partner trust Use of a spouse or common-law partner trust Creation of a spouse or common-law partner trust Vesting indefeasibly Tainted spouse or common-law partner trust Deceased's estate and beneficiaries Income of the estate Residence of a trust Multiple testamentary trusts Estate loss carryback Clearance certificates Potential problems in applying for the clearance certificate Distributions in satisfaction of capital interests Distributions in satisfaction of income interests US estate tax Chapter 10 – Taxation of immigrants, emigrants, and non-residents What's new for 2017? Overview Concepts of tax residency – Treaty tiebreaker rules Residence status in the province of Quebec Resident of a contracting state Tiebreaker rules 1. Permanent home 2. Centre of vital interests 3. Habitual abode 4. Competent authorities Treaty tiebreaker cases Individuals emigrating from Canada Personal assets Marketable securities Deferral of departure tax Sale of assets post-departure Repatriation to Canada RRSPs and pension assets Stock options and deferred stock option benefits Shares in Canadian-controlled private corporations Determination of final tax liability Posting security Return to Canada Registered education savings plans Registered disability savings plans Tax-free savings accounts Canadian real property Real property outside Canada Canadian investment income for a non-resident of Canada Interest income Dividends Income trust and mutual fund distributions Rents and royalties RRSP and pension income Employment income Employment income in the year of departure Sourcing employment income Moving expenses Stock options Stock options exercised before 2013 Stock options exercised after 2012 Canada-US treaty rules Reporting required in year of departure T1 returns Form T1135 Form T1161 Planning Individuals immigrating to Canada Personal assets Consequences of immigration Taxation of capital gains during Canadian residency Reporting related to foreign investment assets Taxation upon departure Employment income Other income Relief granted to short-term residents Relief from departure tax Part-year residents – Calculation of tax Planning Calculating taxes as a part-year resident Date an individual changes residency Claiming non-refundable tax credits as a part-year resident Credits where amounts must be prorated Credits where amounts are determined on the basis of costs incurred in the resident period Credits for EI premiums paid and CPP or QPP contributions Pension credit Tuition credit Education credit (for 2016 and earlier taxation years) Textbook credit (for 2016 and earlier taxation years) Medical expense credit Donations credit Credit for interest on student loans Dividend tax credit Employment credit Adoption expenses credit Transit pass credit Children's arts tax credit (for 2016 and earlier taxation years) First-time home buyers' tax credit Home accessibility tax credit Volunteer firefighters' tax credit Search and rescue volunteers' tax credit Transferred credits Tuition, education, or textbook credit transferred from a child or grandchild Unused credits transferred from a spouse or common-law partner Claiming the refundable child fitness credit as a part-year resident (for 2015 and 2016 only) Claiming the refundable school supplies tax credit as a part-year resident Deductions RRSP contributions Sale or rental of Canadian principal residence Impact on principal residence exemption Selling as a non-resident Certificate process Required reporting Rental of principal residence Change in use to rental property Making a 45(2) election as a non-resident Revoking a 45(2) election as a non-resident Taxation of rental income Section 216 – Deductions Section 216 – Losses Federal surtax and provincial tax Comparative table Sale of property – Recapture Implications on repatriation to Canada Non-residents working in Canada Determination of employment income taxable in Canada Reporting Deductions Calculation of federal tax and non-refundable tax credits Provincial income tax Special rules for actors Section 216.1 election Special rules for pilots Election under section 217 for Canadian benefits Advantage of filing under section 217 Due dates Withholding Completing the section 217 T1 return Deductions Calculation of taxes payable Calculation of taxable income earned in Canada (TIEC) Federal tax credits Special credit Federal surtax and provincial tax Tax treaties Resident of a contracting state Tiebreaker rules Business profits Employment income Independent personal services Artists and athletes Pensions and annuities Capital gains Dividends and interest Other income Students Elimination of double tax Annotations Chapter 11 – Administration What's new for 2017? Overview Payment of tax Date payment considered to be made Source deductions Instalments No-calculation option Prior-year option Current-year option Refunds Interest Penalties Failure to file return of income Failure to provide information on form Failure to provide foreign-based information Failure to file a return for a reportable transaction Failure by tax preparer to file electronically Late or deficient instalments of income tax False statements or omissions Statements or omissions made by the taxpayer Third-party penalties Repeated failures Waiving penalties Interest on penalties Offences and punishment Failure to comply Tax evasion False refund or credit claims Interest Interest on late tax payments Effective interest date Interest resulting from GAAR reassessments Instalment interest Contra interest Overpayment interest Prescribed rates of interest Assessments Issuing assessments Reassessments within the normal reassessment period Reassessments beyond the normal reassessment period Nil assessment or notification of no tax payable Applying for a determination of loss Audits Waivers Adjusting a T1 return (Form T1-ADJ) Non-residents – Adjustment requests Objections to assessments Appeals to the Tax Court of Canada and the Federal Court of Appeal General procedure Informal procedure Partial disposition of appeals Appeals from Tax Court decisions Taxpayer relief provisions Voluntary disclosures program Service complaints program and the taxpayers' ombudsman Service complaints program Taxpayers' ombudsman CRA login services for individuals and tax advisors MyCRA app Record retention Income tax books and records General record retention requirements Record retention period Written permission to destroy Failure to maintain proper records Location of books and records Annotations Appendices Appendix A – T1 jackets, worksheets, and schedules T1 5000-R – Income Tax and Benefit Return – Version for AB, MB, NB, NS, PE, SK and NU only T1 5001-R – Income Tax and Benefit Return – Newfoundland and Labrador Only T1 5005-R – Income Tax and Benefit Return – Quebec Only T1 5006-R – Income Tax and Benefit Return – Ontario Only T1 5010-R – Income Tax and Benefit Return – British Columbia Only T1 5011-R – Income Tax and Benefit Return – Yukon Only T1 5012-R – Income Tax and Benefit Return – Northwest Territories Only T1 5013-R – Income Tax Benefit Return for Non-Residents and Deemed Residents of Canada Federal Worksheet for Residents Federal Worksheet for Non-Residents Schedule 1 – Federal Tax Schedule 1 – Federal Tax for Non-Residents and Deemed Residents of Canada Schedule 2 – Federal Amounts Transferred From Your Spouse or Common-Law Partner Schedule 3 – Capital Gains (or Losses) in 2017 Schedule 4 – Statement of Investment Income Schedule 5 – Amounts for Spouse or Common-Law Partner and Dependants Schedule 6 – Working Income Tax Benefit Schedule 7 – RRSP Unused Contributions, Transfers, and HBP or LLP Activities Schedule 8 – Canada Pension Plan Contributions and Overpayment for 2017 Schedule 9 – Donations and Gifts Schedule 11 – Tuition, Education, and Textbook Amounts Schedule 12 – Home Accessibility Expenses Schedule 13 – Employment Insurance Premiums on Self-Employment and Other Eligible Earnings Schedule A – Statement of World Income for Non-Residents and Deemed Residents of Canada Schedule B – Allowable Amount of Non-Refundable Tax Credits for Non-Residents and Deemed Residents of Canada Schedule C – Electing Under Section 217 of the Income Tax Act for Non-Residents and Deemed Residents of Canada Schedule D – Information about Your Residency Status Appendix B — Forms CPT20 – Election to Pay Canada Pension Plan Contributions CTB9 – Canada Child Tax Benefit – Statement of Income GST370 – Employee and Partner GST/HST Rebate Application NR5 – Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld NR6 – Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent from Real Property or Receiving a Timber Royalty NR7-R – Application for Refund of Part XIII Tax Withheld NR73 – Determination of Residency Status (Leaving Canada) NR74 – Determination of Residency Status (Entering Canada) NRTA1 – Authorization for Non-Resident Tax Exemption PWGSC-TPSGC 8001-552 – Direct Deposit Enrolment Form [Individuals] RC151 – GST/HST Credit Application for Individuals Who Become Residents of Canada RC201 – Working Income Tax Benefit Advance Payments Application T1A – Request for Loss Carryback T1-ADJ – T1 Adjustment Request T1E-OVP – Individual Income Tax Return for RESP Excess Contributions T1-M – Moving Expenses Deduction T1-OVP – 2017 Individual Tax Return for RRSP, PRPP and SPP Excess Contributions T3 – Statement of Trust Income Allocations and Designations T4 – Statement of Remuneration Paid T4A – Statement of Pension, Retirement, Annuity and Other Income T4A(OAS) – Statement of Old Age Security T4A-RCA – Statement of Distributions From a Retirement Compensation Arrangement (RCA) T4E – Statement of Employment Insurance and Other Benefits T4PS – Statement of Employee Profit-Sharing Plan Allocations and Payments T4RIF – Statement of Income from a Registered Retirement Income Fund T4RSP – Statement of Registered Retirement Savings Plan Income T5 – Statement of Investment Income T123 – Election on Disposition of Canadian Securities T137 – Request for Destruction of Records T626 – Overseas Employment Tax Credit T657 – Calculation of Capital Gains Deduction T661 – Claim for Scientific Research and Experimental Development (SR&ED) Carried Out in Canada T691 – Alternative Minimum Tax T746 – Calculating Your Deduction for Refund of Unused RRSP, PRPP, and SPP Contributions T776 – Statement of Real Estate Rentals T777 – Statement of Employment Expenses T778 – Child Care Expenses Deduction T929 – Disability Supports Deduction T936 – Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2017 T1006 – Designating an RRSP Withdrawal as a Qualifying Withdrawal T1032 – Joint Election to Split Pension Income T1043 – Deduction for Excess Registered Pension Plan Transfers You Withdrew from an RRSP or RRIF T1090 – Death of a RRIF Annuitant – Designated Benefit T1105 – Supplementary Schedule for Dispositions of Capital Property Acquired Before 1972 T1134 – Information Return Relating to Controlled and Not-Controlled Foreign Affiliates T1135 – Foreign Income Verification Statement T1136 – Old Age Security Return of Income T1139 – Reconciliation of 2017 Business Income for Tax Purposes T1141 – Information Return in Respect of Transfers or Loans to a Non-Resident Trust T1142 – Information Return in Respect of Distributions From and Indebtedness to a Non-Resident Trust T1145 – Agreement to Allocate Assistance for SR&ED Between Persons Not Dealing at Arm's Length T1146 – Agreement to Transfer Qualified Expenditures Incurred in Respect of SR&ED Contracts Between Persons Not Dealing at Arm's Length T1157 – Election for Child Support Payments T1158 – Registration of Family Support Payments T1159 – Income Tax Return for Electing Under Section 216 T1161 – List of Properties by an Emigrant of Canada T1170 – Capital Gains on Gifts of Certain Capital Property T1171 – Tax Withholding Waiver on Accumulated Income Payments from RESPs T1172 – Additional Tax on Accumulated Income Payments from RESPs T1198 – Statement of Qualifying Retroactive Lump-Sum Payment T1206 – Tax on Split Income T1212 – Statement of Deferred Security Options Benefits T1213 – Request to Reduce Tax Deductions at Source for Year(s) _________ T1223 – Clergy Residence Deduction T1229 – Statement of Resource Expenses and Depletion Allowance T1287 – Application by a Non-Resident of Canada (Individual) for a Reduction in the Amount of Non-Resident Tax Required to be Withheld on Income Earned From Acting in a Film or Video Production T2017 – Summary of Reserves on Disposition of Capital Property T2019 – Death of an RRSP Annuitant – Refund of Premiums T2030 – Direct Transfer Under Subparagraph 60(1)(v) T2033 – Direct Transfer under Subsection 146.3(14.1) or Paragraph 146(16)(a) or 146.3(2)(e) T2038(IND) – Investment Tax Credit (Individuals) T2042 – Statement of Farming Activities T2061A – Election by an Emigrant to Report Deemed Dispositions of Property and Any Resulting Capital Gain or Loss T2062 – Request by a Non-Resident of Canada for a Certificate of Compliance Related to the Disposition of Taxable Canadian Property T2062A – Request By a Non-Resident of Canada for a Certificate of Compliance Related to the Disposition of Canadian Resource or Timber Resource Property, Canadian Real Property (Other Than Capital Property), or Depreciable Taxable Canadian Property T2069 – Election in Respect of Amounts Not Deductible as Reserves for the Year of Death T2075 – Election to Defer Payment of Income Tax, Under Subsection 159(5) of the Income Tax Act by a Deceased Taxpayer's Legal Representative or Trustee T2091(IND) – Designation of a Property as a Principal Residence by an Individual (Other than a Personal Trust) T2091(IND)-WS – Principal Residence Worksheet T2121 – Statement of Fishing Activities T2125 – Statement of Business or Professional Activities T2145 – Election in Respect of the Leasing of Property T2146 – Election in Respect of Assigned Leases or Subleased Property T2151 – Direct Transfer of a Single Amount Under Subsection 147(19) or Section 147.3 T2200 – Declaration of Conditions of Employment T2201 – Disability Tax Credit Certificate T2202A – Tuition, Education, and Textbook Amounts Certificate T2203 – Provincial and Territorial Taxes for 2017 – Multiple Jurisdictions T2204 – Employee Overpayment of 2017 Employment Insurance Premiums T2205 – Amounts from a Spousal or Common-law Partner RRSP or RRIF to Include in Income for ___ (year) T2209 – Federal Foreign Tax Credits T2210 – Verification of Policy Loan Interest by the Insurer T2220 – Transfer from an RRSP or a RRIF to Another RRSP or RRIF on Breakdown of Marriage or Common-Law Partnership T2222 – Northern Residents Deductions T3012A – Tax Deduction Waiver on the Refund of Your Unused RRSP Contributions Made in _____ T5003 – Statement of Tax Shelter Information T5004 – Claim for Tax Shelter Loss or Deduction T5007 – Statement of Benefits T5008 – Statement of Securities Transactions T5013 – Statement of Partnership Income T5013A – Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses TL2 – Claim for Meals and Lodging Expenses TL11A – Tuition, Education, and Textbook Amounts Certificate – University Outside Canada TL11B – Tuition, Education, and Textbook Amounts Certificate – Flying School or Club TL11C – Tuition, Education, and Textbook Amounts Certificate – Commuter to the United States TL11D – Tuition Fees Certificate – Educational Institutions Outside Canada for a Deemed Resident of Canada TX19 – Asking for a Clearance Certificate Appendix C – Guides and pamphlets T1 General Income Tax and Benefit Guide – 2017 (Rev. 2017) 5000-G What's new for 2017? Our services Individuals and families Interest and investments Completing your return Getting started What if you are missing information? Do you have to file a return? Deceased persons Which forms book should you use? Exceptions Other publications you may need How to get the tax guide and forms you need Where to mail your paper return and correspondence Filing deadlines, penalties and interest What date is your return for 2017 due? Exception to the due date of your return Deceased persons What penalties and interest do we charge? Late-filing penalty Repeated failure to report income penalty False statements or omissions penalty Interest Cancel or waive penalties or interest What is a voluntary disclosure? How to file your return NETFILE EFILE Auto-fill my return Filing a paper return Community Volunteer Income Tax Program (CVITP) What do you do with your slips, receipts and other supporting documents? Tax information videos Can you file a return for a previous year? Benefits for individuals and families Goods and services tax/harmonized sales tax (GST/HST) credit Canada child benefit (CCB) and child disability benefit (CDB) For more information on benefits Working income tax benefit (WITB) Guaranteed income supplement (GIS) for seniors Online services My Account MyCRA mobile app MyBenefits CRA mobile app Handling business taxes online Electronic mailing lists Electronic payments Direct deposit Step 1 – Identification and other information Information about you and your spouse or common-law partner, if you have one (page 1 of your return) Identify yourself Provide an email address Provide information about your residence Provide information about yourself Social insurance number (SIN) Date of birth Language of correspondence Is this return for a deceased person? Indicate your marital status Spouse Common-law partner Provide information about your spouse or common-law partner Residency information for tax administration agreements (page 1 of your return) Elections Canada (page 1 of your return) How to complete this section If you tick "Yes" to questions A and B If you tick "No" to question B Removal from the Register Deceased persons Contact Elections Canada Specified foreign property (page 2 of your return) Other foreign property Shares of a non-resident corporation Loans and transfers to non-resident trusts Beneficiaries of non-resident trusts Step 2 – Total income Calculation of total income (page 2 of your return) Amounts that are not taxed Report foreign income and other foreign amounts Retroactive lump-sum payments Loans and transfers of property Split income of a child under 18 How to report this income Tax shelters Line 101 – Employment income Emergency services volunteers Security options benefits Commissions (box 42) Wage-loss replacement plan income Line 104 – Other employment income Line 113 – Old age security (OAS) pension Line 114 – CPP or QPP benefits CPP or QPP disability benefit (box 16) CPP or QPP child benefit (box 17) CPP or QPP death benefit (box 18) Line 115 – Other pensions and superannuation Annuity, pooled registered pension plan (PRPP), and registered retirement income fund (RRIF), including life income fund payments Specified pension plan (SPP) Pensions from a foreign country Line 116 – Elected split-pension amount Line 117 – Universal child care benefit (UCCB) Line 119 – Employment insurance and other benefits Line 120 – Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations How to report this income Line 121 – Interest and other investment income How to report this income Line 122 – Net partnership income: limited or non-active partners only Line 125 – Registered disability savings plan (RDSP) income Line 126 – Rental income Line 127 – Taxable capital gains How to report these gains Line 128 – Support payments received Line 129 – RRSP income RRSPs for spouse or common-law partner Repayments under the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP) Line 130 – Other income Scholarships, fellowships, bursaries, and artists' project grants Apprenticeship incentive grant and apprenticeship completion grant Lump-sum payments Retiring allowances Death benefits (other than Canada Pension Plan or Quebec Pension Plan death benefits) Other kinds of income Lines 135 to 143 – Self-employment income Line 144 – Workers' compensation benefits Line 145 – Social assistance payments Line 146 – Net federal supplements Step 3 – Net income Calculation of net income (page 3 of your return) Line 205 – Pooled registered pension plan (PRPP) employer contributions Line 206 – Pension adjustment Line 207 – Registered pension plan (RPP) deduction Line 208 – RRSP/PRPP deduction Maximum contributions you can deduct How to complete Schedule 7 Line 210 – Deduction for elected split-pension amount Line 212 – Annual union, professional, or like dues Line 213 – Universal child care benefit (UCCB) repayment Line 214 – Child care expenses Line 215 – Disability supports deduction Line 217 – Business investment loss Line 219 – Moving expenses Line 220 – Support payments made Line 221 – Carrying charges and interest expenses Line 222 – Deduction for CPP or QPP contributions on self-employment and other earnings Making additional CPP contributions How to calculate your contributions Request for refund of CPP contributions Line 223 – Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income Line 224 – Exploration and development expenses How to claim this deduction Line 229 – Other employment expenses Line 231 – Clergy residence deduction Line 232 – Other deductions Income amounts repaid Legal fees Other deductible amounts Line 235 – Social benefits repayment Employment insurance (EI) benefits Old age security (OAS) benefits Line 236 – Net income Step 4 – Taxable income Calculation of taxable income (page 3 of your return) Line 244 – Canadian Forces personnel and police deduction Line 248 – Employee home relocation loan deduction Line 249 – Security options deductions Line 250 – Other payments deduction Line 251 – Limited partnership losses of other years Line 252 – Non-capital losses of other years Line 253 – Net capital losses of other years Line 254 – Capital gains deduction Line 255 – Northern residents deductions Line 256 – Additional deductions Exempt foreign income Vow of perpetual poverty Adult basic education tuition assistance Employees of prescribed international organizations Step 5 – Federal tax and provincial or territorial tax Calculation of federal tax (Schedule 1) Minimum tax Step 1 of Schedule 1 – Federal non-refundable tax credits Newcomers to Canada and emigrants Amounts for non-resident dependants Canada caregiver amount Line 300 – Basic personal amount Line 301 – Age amount Line 303 – Spouse or common-law partner amount Line 304 – Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older Line 305 – Amount for an eligible dependant Line 307 – Canada caregiver amount for other infirm dependants age 18 or older Line 308 – CPP or QPP contributions through employment Line 310 – CPP or QPP contributions on self-employment and other earnings Line 312 – Employment insurance premiums through employment Line 313 – Adoption expenses Line 314 – Pension income amount Line 316 – Disability amount (for self) Line 317 – Employment insurance premiums on self-employment and other eligible earnings Line 318 – Disability amount transferred from a dependant Line 319 – Interest paid on your student loans Line 323 – Your tuition, education, and textbook amounts Line 324 – Tuition amount transferred from a child Line 326 – Amounts transferred from your spouse or common-law partner Line 330 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2000 or later Line 331 – Allowable amount of medical expenses for other dependants Line 349 – Donations and gifts Lines 352 and 367 – Canada caregiver amount for infirm children under 18 years of age Line 362 – Volunteer firefighters' amount (VFA) and Line 395 – Search and rescue volunteers' amount (SRVA) Line 363 – Canada employment amount Line 364 – Public transit amount Line 367 – Canada caregiver amount for infirm children under 18 years of age Line 369 – Home buyers' amount Line 375 – Provincial parental insurance plan (PPIP) premiums paid Line 376 – PPIP premiums payable on employment income Line 378 – PPIP premiums payable on self-employment income Line 395 – Search and rescue volunteers' amount (SRVA) Line 398 – Home accessibility expenses Step 2 of Schedule 1 – Federal tax on taxable income Step 3 of Schedule 1 – Net federal tax Recapture of investment tax credit Federal logging tax credit Line 405 – Federal foreign tax credit Lines 409 and 410 – Federal political contribution tax credit Line 412 – Investment tax credit Lines 413 and 414 – Labour-sponsored funds tax credit Line 415 – Working income tax benefit (WITB) advance payments Line 418 – Special taxes Line 420 – Net federal tax Line 421 – CPP contributions payable on self-employment and other earnings Line 422 – Social benefits repayment Line 424 – Federal tax on split income Line 425 – Federal dividend tax credit Line 427 – Minimum tax carryover Calculation of provincial or territorial tax (Form 428) Step 6 – Refund or balance owing Summary of tax and credits (page 4 of your return) Line 420 – Net federal tax Line 421 – CPP contributions payable on self-employment and other earnings Line 422 – Social benefits repayment Line 428 – Provincial or territorial tax Line 430 – Employment insurance premiums payable on self-employment and other eligible earnings Line 437 – Total income tax deducted Line 438 – Tax transfer for residents of Quebec Line 440 – Refundable Quebec abatement Line 448 – CPP overpayment Line 450 – Employment insurance overpayment Line 452 – Refundable medical expense supplement Line 453 – Working income tax benefit (WITB) Line 454 – Refund of investment tax credit Line 456 – Part XII.2 trust tax credit Line 457 – Employee and partner GST/HST rebate Lines 468 and 469 – Eligible educator school supply tax credit Eligible educator Eligible supplies expense Line 476 – Tax paid by instalments Line 479 – Provincial or territorial credits Line 484 – Refund When can you expect your refund? When will we pay interest? Direct deposit Line 485 – Balance owing After you file Notice of assessment What happens to your return after we receive it? Should you be paying your taxes by instalments? How to change a return How to register a formal dispute For more information What if you need help? Tax Information Phone Service (TIPS) Getting personal tax information Taxpayer Bill of Rights Forms and publications What should you do if you move? Representatives Legal representatives Service complaints Reprisal complaint T1 General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada – 2017 (Rev. 2017) 5013-G Is this guide for you? What's new for 2017? Individuals and families Interest and investments Completing your return Getting started What if you are missing information? Determining your residency status Were you a non-resident of Canada in 2017? What are residential ties? Were you a non-resident of Canada in 2017 who wants to elect under section 217? Were you a non-resident of Canada in 2017 who wants to elect under section 216.1? Were you a deemed non-resident of Canada in 2017? Were you a deemed resident of Canada in 2017? Were you a member of the overseas Canadian Forces school staff who left Canada in 2017? Did you live in Quebec just before you left Canada? Electing under section 217 What is a section 217 election? Does section 217 apply to you? When is your section 217 return due? Completing your section 217 return Electing under section 216.1 What is a section 216.1 election? When is your section 216.1 return due? Reducing tax withheld at source Do you have to file a return? Deceased persons Which guide and forms book should you use if this guide is not for you? How to get the tax guide and forms you need Filing deadlines, penalties and interest What date is your return for 2017 due? Exception to the due date of your return Deceased persons What penalties and interest do we charge? Late-filing penalty Repeated failure to report income penalty False statements or omissions penalty Interest Cancel or waive penalties or interest What is a voluntary disclosure? How to file your return What do you do with your slips, receipts and other supporting documents? Tax information videos Can you file a return for a previous year? Benefits for individuals and families Goods and services tax/harmonized sales tax (GST/HST) credit Canada child benefit (CCB) and child disability benefit (CDB) For more information on benefits Working income tax benefit (WITB) Guaranteed income supplement (GIS) for seniors Online services My Account MyCRA mobile app MyBenefits CRA mobile app Handling business taxes online Electronic mailing lists Electronic payments Direct deposit Step 1 – Identification and other information Information about you and your spouse or common-law partner, if you have one (page 1 of your return) Identify yourself Provide an email address Provide information about your residence Provide information about yourself Social insurance number (SIN) Date of birth Language of correspondence Is this return for a deceased person? Indicate your marital status Spouse Common-law partner Provide information about your spouse or common-law partner Elections Canada (page 1 of your return) How to complete this section If you tick "Yes" to questions A and B If you tick "No" to question B Removal from the Register Deceased persons Contact Elections Canada Information about your residency status Specified foreign property (page 2 of your return) Other foreign property Shares of a non-resident corporation Loans and transfers to non-resident trusts Beneficiaries of non-resident trusts Step 2 – Total income Calculation of total income (page 2 of your return) Amounts that are not taxed Report foreign income and other foreign amounts Retroactive lump-sum payments Loans and transfers of property Split income of a child under 18 How to report this income Tax shelters Line 101 – Employment income Emergency services volunteers Security options benefits Commissions (box 42) Wage-loss replacement plan income Line 104 – Other employment income Line 113 – Old age security (OAS) pension Line 114 – CPP or QPP benefits CPP or QPP disability benefit (box 16) CPP or QPP child benefit (box 17) CPP or QPP death benefit (box 18) Line 115 – Other pensions and superannuation Annuity, pooled registered pension plan (PRPP), and registered retirement income fund (RRIF), including life income fund payments Specified pension plan (SPP) Pensions from a foreign country Line 116 – Elected split-pension amount Line 117 – Universal child care benefit (UCCB) Line 119 – Employment insurance and other benefits Line 120 – Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations How to report this income Line 121 – Interest and other investment income How to report this income Bank accounts Term deposits, guaranteed investment certificates (GICs), and other similar investments Canada savings bonds Treasury bills Earnings on life insurance policies Line 122 – Net partnership income: limited or non-active partners only Line 125 – Registered disability savings plan (RDSP) income Line 126 – Rental income Line 127 – Taxable capital gains How to report these gains Line 128 – Support payments received Line 129 – RRSP income RRSPs for spouse or common-law partner Repayments under the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP) Line 130 – Other income Scholarships, fellowships, bursaries, and artists' project grants Apprenticeship incentive grant and apprenticeship completion grant Lump-sum payments Retiring allowances Death benefits (other than Canada Pension Plan or Quebec Pension Plan death benefits) Other kinds of income Lines 135 to 143 – Self-employment income Line 144 – Workers' compensation benefits Line 145 – Social assistance payments Line 146 – Net federal supplements Step 3 – Net income Calculation of net income (page 3 of your return) Line 205 – Pooled registered pension plan (PRPP) employer contributions Line 206 – Pension adjustment Line 207 – Registered pension plan (RPP) deduction Line 208 – RRSP/PRPP deduction Maximum contributions you can deduct How to complete Schedule 7 Line 210 – Deduction for elected split-pension amount Line 212 – Annual union, professional, or like dues Line 213 – Universal child care benefit (UCCB) repayment Line 214 – Child care expenses Line 215 – Disability supports deduction Line 217 – Business investment loss Line 219 – Moving expenses Line 220 – Support payments made Line 221 – Carrying charges and interest expenses Line 222 – Deduction for CPP or QPP contributions on self-employment and other earnings Making additional CPP contributions How to calculate your contributions Request for refund of CPP contributions Line 223 – Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income Line 224 – Exploration and development expenses How to claim this deduction Line 229 – Other employment expenses Line 231 – Clergy residence deduction Line 232 – Other deductions Income amounts repaid Legal fees Other deductible amounts Line 235 – Social benefits repayment Employment insurance (EI) benefits Old age security (OAS) benefits Line 236 – Net income Step 4 – Taxable income Calculation of taxable income (page 3 of your return) Line 244 – Canadian Forces personnel and police deduction Line 248 – Employee home relocation loan deduction Line 249 – Security options deductions Line 250 – Other payments deduction Line 251 – Limited partnership losses of other years Line 252 – Non-capital losses of other years Line 253 – Net capital losses of other years Line 254 – Capital gains deduction Line 255 – Northern residents deductions Line 256 – Additional deductions Exempt foreign income Vow of perpetual poverty Adult basic education tuition assistance Employees of prescribed international organizations Step 5 – Federal tax and provincial or territorial tax Calculation of federal tax (Schedule 1) Schedule A, Statement of World Income Minimum tax Step 1 of Schedule 1 – Federal non-refundable tax credits What amounts can you claim? Schedule B, Allowable Amount of Non-Refundable Tax Credits Amounts for non-resident dependants Canada caregiver amount Line 300 – Basic personal amount Line 301 – Age amount Line 303 – Spouse or common-law partner amount Net world income of spouse or common-law partner Line 304 – Canada caregiver amount for spouse or common-law partner, or an eligible dependant age 18 or older Line 305 – Amount for an eligible dependant Line 307 – Canada caregiver amount for other infirm dependants age 18 or older Line 308 – CPP or QPP contributions through employment Line 310 – CPP or QPP contributions on self-employment and other earnings Line 312 – Employment insurance premiums through employment Line 313 – Adoption expenses Line 314 – Pension income amount Line 316 – Disability amount (for self) Line 317 – Employment insurance premiums on self-employment and other eligible earnings Line 318 – Disability amount transferred from a dependant Line 319 – Interest paid on your student loans Line 323 – Your tuition, education, and textbook amounts Line 324 – Tuition amount transferred from a child Line 326 – Amounts transferred from your spouse or common-law partner Line 330 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2000 or later Line 331 – Allowable amount of medical expenses for other dependants Line 349 – Donations and gifts Lines 352 and 367 – Canada caregiver amount for infirm children under 18 years of age Line 362 – Volunteer firefighters' amount (VFA) and Line 395 – Search and rescue volunteers' amount (SRVA) Line 363 – Canada employment amount Line 364 – Public transit amount Line 367 – Canada caregiver amount for infirm children under 18 years of age Line 369 – Home buyers' amount Line 375 – Provincial parental insurance plan (PPIP) premiums paid Line 376 – PPIP premiums payable on employment income Line 378 – PPIP premiums payable on self-employment income Line 395 – Search and rescue volunteers' amount (SRVA) Line 398 – Home accessibility expenses Step 2 of Schedule 1 – Federal tax on taxable income Step 3 of Schedule 1 – Net federal tax Recapture of investment tax credit Federal logging tax credit Line 405 – Federal foreign tax credit Lines 409 and 410 – Federal political contribution tax credit Line 412 – Investment tax credit Lines 413 and 414 – Labour-sponsored funds tax credit Line 415 – Working income tax benefit (WITB) advance payments Line 418 – Special taxes Line 420 – Net federal tax Line 421 – CPP contributions payable on self-employment and other earnings Line 422 – Social benefits repayment Line 424 – Federal tax on split income Line 425 – Federal dividend tax credit Line 427 – Minimum tax carryover Line 428 – Provincial or territorial tax Line 430 – Employment insurance premiums payable on self-employment and other eligible earnings Line 437 – Total income tax deducted Line 438 – Tax transfer for residents of Quebec Line 440 – Refundable Quebec abatement Line 445 – Section 217 tax adjustment Line 55 – Surtax for non-residents of Canada and deemed residents of Canada Calculation of provincial and territorial tax Step 6 – Refund or balance owing Summary of tax and credits (page 4 of your return) Line 420 – Net federal tax Line 421 – CPP contributions payable on self-employment and other earnings Line 422 – Social benefits repayment Line 428 – Provincial or territorial tax Line 430 – Employment insurance premiums payable on self-employment and other eligible earnings Line 437 – Total income tax deducted Line 438 – Tax transfer for residents of Quebec Line 440 – Refundable Quebec abatement Line 445 – Section 217 tax adjustment Line 448 – CPP overpayment Line 450 – Employment insurance overpayment Line 452 – Refundable medical expense supplement Line 453 – Working income tax benefit (WITB) Line 454 – Refund of investment tax credit Line 456 – Part XII.2 trust tax credit Line 457 – Employee and partner GST/HST rebate Eligible educator Eligible supplies expense Line 476 – Tax paid by instalments Line 484 – Refund When can you expect your refund? When will we pay interest? Direct deposit Line 485 – Balance owing After you file Notice of assessment What happens to your return after we receive it? Should you be paying your taxes by instalments? How to change a return How to register a formal dispute For more information What if you need help? Tax Information Phone Service (TIPS) Getting personal tax information Taxpayer Bill of Rights Forms and publications What should you do if you move? Representatives Legal representatives Service complaints Reprisal complaint To contact us By telephone Regular hours of service Extended hours of service Regular hours of service Extended hours of service By mail Applicant's Guide for Electronic Filers of Returns for Individuals (Rev. 2001) T4085 Is this guide for you? Checklist Glossary Internet What's new for 2001? Chapter 1 – General information What is EFILE? What are the benefits of EFILE? Which returns can be filed electronically? What are the steps to file a return electronically? What happens after we accept an electronic record for processing? Before-assessment review After-assessment review Chapter 2 – What services can you offer? Preparers Transmitters Preparers/transmitters Software developers Chapter 3 – What are your responsibilities as an electronic filer? Preparers Transmitters Preparers/transmitters Advertising Monitoring Chapter 4 – How to transmit returns electronically Proprietary system Electronic Data Interchange (EDI) How can you transmit? Proprietary system EDI Using an EFILE transmitter What will you need? Hardware Software Tax calculation and communications software Encryption software Testing Chapter 5 – How to become an electronic filer Who can apply? How do you apply? When do you need to revise your application? How to complete Form T200, Electronic Filing Application of Returns for Individuals What is suitability screening? Why do we screen applicants? Definition of an applicant Screening criteria EFILE testing Permission to access the EFILE system Chapter 6 – System for Electronic Notification of Debt (SEND) What is SEND? How do you apply? Suitability screening and testing Chapter 7 – EFILE support network Where can you get help? Help desks Bulletin board EDI Glossary EFILE help desks Checklist for applicants Canada Revenue Agency EFILE for Tax Professionals (Rev. 2006) T4077 Commitment to meeting the needs of Canadians What is EFILE? More power and privilege Other advantages of using EFILE How does EFILE work? For Personal Income Tax and Benefit Returns For Corporation (T2) Income Tax Returns The System for Electronic Notification of Debt How to apply? Renewing your participation Support network Comments and suggestions EFILE Help Desks Canada Revenue Agency's Collections Policies (Rev. 2012) T4060 Canada Revenue Agency's Collections Policies Your obligation as a taxpayer Our Collection Procedures Payment in Full Arrangements to pay Managerial review of decision Legal action Inter-departmental set-off Offset of refund Your Rights Disagreement With the Amount Owing Objection and appeal Frivolity penalty Repayment of disputed amounts Confidentiality and privacy Taxpayer Relief Provisions A Final Word Canadian Residents Abroad (Rev. 2012) T4131 Is this pamphlet for you? Before you start Residency status What are residential ties? Do you need help determining your residency status? Are you a factual resident? Types of factual residents Missionaries Factual residents and income tax Which tax package should you use? The Canada child tax benefit The universal child care benefit What if your circumstances change? Are you a deemed resident? Types of deemed residents Deemed residents and income tax Did you live in Quebec just before you left Canada? Which tax package should you use? The Canada child tax benefit The universal child care benefit Are you a non-resident? Non-residents and income tax Do you have Canadian-source investment income? Do you have Canadian-source pensions, annuities, and similar payments? Do you receive old age security pension? Do you have rental income from real property or timber royalties on a timber resource property or a timber limit in Canada? Which tax package should you use? The Canada child tax benefit The universal child care benefit Are you a deemed non-resident? Deemed non-residents and income tax Special credits Foreign tax credit Overseas employment tax credit Tax treaties For more information What if you need help? Forms and publications Tax Information Phone Service (TIPS) What should you do if you move? To contact us By telephone Regular hours of service Extended hours of service From February 18 to April 30, 2013, except Easter weekend By mail Your opinion counts Capital Gains (Rev. 2017) — T4037 Before you start Is this guide for you? What's new for 2017? Definitions Chapter 1 – General information When do you have a capital gain or loss? Disposing of Canadian securities Disposing of personal-use property (including your principal residence) Personal-use property Principal residence When do you report a capital gain or loss? Do you own a business? Are you a member of a partnership? Calculating your capital gain or loss What happens if you have a capital gain? Claiming a reserve Who can claim a reserve? How do you calculate and report a reserve? Reserve for a gift of non-qualifying securities Claiming a capital gains deduction What is a capital gains deduction? Which capital gains are eligible for the capital gains deduction? Who is eligible to claim the capital gains deduction? What is the capital gains deduction limit? How do you claim the capital gains deduction? What happens if you have a capital loss? What records do you have to keep? Chapter 2 – Completing Schedule 3 Qualified small business corporation shares Capital gains deduction Qualified farm or fishing property Capital gains deduction Publicly traded shares, mutual fund units, deferral of eligible small business corporation shares, and other shares Employee security options Employee security option cash-out rights Disposition of eligible securities Remittance requirement Donations under employee option agreements Stock splits and consolidations Real estate, depreciable property, and other properties Real estate Depreciable property Capital gain Recapture of CCA and terminal losses Bonds, debentures, promissory notes, and other similar properties Treasury bills (T-bills) and stripped bonds Bad debts Foreign currencies Other mortgage foreclosures and conditional sales repossessions Other tax implications Personal-use property Listed personal property Information slips – Capital gains (or losses) Chart 1 – Reporting capital gains (or losses) and other amounts from information slips Chapter 3 – Special rules and other transactions Adjusted cost base Identical properties Property for which you filed Form T664 or T664(Seniors) Chart 2 – Calculating the revised adjusted cost base (ACB) of a flow-through entity Chart 3 – Calculating the revised adjusted cost base (ACB) of capital property (other than a flow-through entity) Property you inherit or receive as a gift Selling a building in 2017 Selling part of a property Capital gains deferral for investment in small business Eligible small business corporation shares Calculating the capital gains deferral ACB reduction Other transactions Property included in capital cost allowance Class 14.1 Election on dispositions of property included in CCA Class 14.1 Partnerships Capital gains reduction (flow-through entity) Capital gains deduction Purchase of replacement property Transfers of property to your spouse or common-law partner or to a trust for your spouse or common-law partner Other transfers of property Farm or fishing property Elections Selling or donating certified Canadian cultural property Gifts of ecologically sensitive land Chapter 4 – Flow-through entities What is a flow-through entity? Exempt capital gains balance Disposing of your shares of, or interest in, a flow-through entity Chapter 5 – Capital losses Inclusion rate How do you apply your 2017 net capital loss to previous years? How do you apply your net capital losses of other years to 2017? Losses incurred before May 23, 1985 Chart 5 – Applying net capital losses of other years to 2017 (for taxpayers with a pre-1986 capital loss balance) Applying listed personal property losses Superficial loss Restricted farm loss Allowable business investment loss What is a business investment loss? What happens when you incur an ABIL? Chart 6 – How to claim an allowable business investment loss Summary of loss application rules Chapter 6 – Principal residence What is a principal residence? Designating a principal residence Can you have more than one principal residence? Disposing of your principal residence Reporting the sale of your principal residence Why you have to report the sale Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust) Did you or your spouse or common-law partner file Form T664 or T664(Seniors)? Changes in use Special situations Changing all your principal residence to a rental or business property Changing your rental or business property to a principal residence Changing part of your principal residence to a rental or business property Farm property Example References Forms Income Tax Folios Information Circulars Information Sheet Interpretation Bulletins (Archived) For more information What if you need help? Forms and publications My Account How to register Sign up for online mail Service complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Ceiling Amounts for Housing Benefits Paid in Prescribed Zones (Rev. 2017) RC4054 Message to employers Housing benefit ceiling amounts Death of a RRIF Annuitant or a PRPP Member (Rev. 2017) RC4178 Part 1 – Death of a RRIF annuitant Slips issued by the RRIF issuer General rule – deceased annuitant General rule – beneficiaries of the RRIF Optional reporting Qualified beneficiaries – transfers Transfers to registered disability savings plans RDSP rollover reporting Eligible individual Part 2 – Death of a PRPP member General rule for PRPP – deceased member Transfers to registered disability savings plans Post-death increase or decrease in value Online service My Account How to register Sign up for online mail MyCRA – Mobile app Electronic payments For more information What if you need help? Forms and publications Forms Publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Death of an RRSP Annuitant (Rev. 2017) RC4177 Slips issued by the RRSP issuer Unmatured RRSP General rule for RRSP – deceased annuitant General rule – beneficiaries of the RRSP Optional reporting for an unmatured RRSP Qualified beneficiaries – transfers Transfers to registered disability savings plans RDSP rollover reporting Eligible individual Matured RRSP General rule – deceased annuitant General rule – beneficiaries of the RRSP Optional reporting for a matured RRSP Online services My Account How to register Sign up for online mail MyCRA – Mobile app Electronic payments For more information What if you need help? Forms and publications Forms Publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Disability-Related Information (Rev. 2017) — RC4064 Is this guide for you? What's new for 2017? Disability tax credit – Nurse practitioners Canada caregiver credit Services for persons with disabilities Help for persons who have a hearing or speech impairment Help for persons who are blind or partially sighted Community Volunteer Income Tax Program Non-refundable tax credits Disability tax credit Definitions and criteria Who is eligible for the DTC? Self-assessment questionnaire How do you apply for the DTC? Step 1 – Fill out Part A of Form T2201 Step 2 – Ask a medical practitioner to certify Part B of Form T2201 Step 3 – Send your filled out Form T2201 What happens after Form T2201 is sent? The application is approved The application is denied How do you claim the disability amount? Disability amount for self (line 316) Disability amount transferred from a dependant (line 318) Amounts transferred from your spouse or common-law partner (line 326) Amount for an eligible dependant (line 305) Who is eligible? Canada caregiver amount Claiming an amount for your spouse or common-law partner Claiming an amount for your dependant who is 18 years of age or older If you can claim an amount for your dependant on line 305 If you cannot claim an amount for your dependant on line 305 Claiming an amount for your dependant under 18 years of age Claiming an amount for your child Claiming an amount for a dependant who is not your child What supporting documents do you need? Medical expenses (lines 330 and 331) Home buyers' amount (line 369) Who is eligible? Home accessibility expenses (line 398) Who is eligible? Which renovations are eligible? Refundable tax credits Refundable medical expense supplement (line 452) Working income tax benefit (line 453) Other tax measures Child care expenses (line 214) Disability supports deduction (line 215) Who is eligible? Which expenses can you claim? What is a medical practitioner? What are the amounts you cannot claim? How do you calculate your claim? Child disability benefit Home buyers' plan Registered disability savings plan Students with disabilities Disability-related employment benefits Excise tax information GST/HST information Online services My Account How to register Sign up for online mail MyCRA mobile app For more information What if you need help? Direct deposit Authorizing a representative Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Service complaints Reprisal complaint Tax information videos Electing Under Section 217 of the Income Tax Act (Rev. 2017) T4145 Is this pamphlet for you? Before you start What is a section 217 election? What types of income are eligible for a section 217 election? Is a section 217 election beneficial? Form NR5 – Reducing tax withheld Do you have to file a section 217 return? Which tax guide should you use? When is your section 217 return due? Completing your section 217 return Identification Income Schedule C – Electing Under Section 217 of the Income Tax Act Deductions Calculating federal tax Schedule A – Statement of World Income Schedule 1 – Federal Tax Federal non-refundable tax credits Schedule B – Allowable Amount of Non-Refundable Tax Credits Section 217 tax adjustment Tax payable Refund or balance owing Lines 468 and 469 – Eligible educator school supply tax credit What if the election is beneficial? What if the election is not beneficial? For more information What if you need help? Forms and publications Tax Information Phone Service (TIPS) To contact us By telephone Regular hours of service Extended hours of service Regular hours of service Extended hours of service By mail Emigrants and Income Tax (Rev. 2013) T4056 Is this guide for you? General information Are you an emigrant? Do you need help determining your residency status? When do you become a non-resident? Are you receiving Canada child tax benefit (CCTB), child disability benefit (CDB), and/or universal child care benefit (UCCB) payments? Are you receiving the goods and services tax/harmonized sales tax (GST/HST) credit? Are you participating in the Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP)? Tax-free savings account (TFSA) Will you continue to receive Canadian-source income? Do you have to report income that has non-resident tax withheld? Has your Canadian payer withheld too much non-resident tax? Transfers to registered plans or funds Did you own property on the date you emigrated from Canada? List of property Deemed dispositions of property Reporting the deemed disposition on your return Can you elect to defer the payment of tax on income relating to the deemed disposition of property? When is security required? What type of security is acceptable? What if the required security cannot be raised? What if you return to Canada? Disposing of property after you emigrate from Canada Taxable canadian property Property deemed disposed of on departure Do you have to file a 2013 return? Which tax package should you use? Where can you get the tax package you need? What date is your return due? Completing your 2013 return Identification Information about your residence Information about your spouse or common-law partner Goods and services tax/harmonized sales tax (GST/HST) credit application Income Deductions Moving expenses Federal tax and credits Federal non-refundable tax credits For the part of 2013 that you were a resident of Canada For the part of 2013 that you were not a resident of Canada Provincial or territorial tax Provincial or territorial non-refundable tax credits Refund or balance owing Provincial or territorial tax credits Overpayment of Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) Election under section 217 of the Income Tax Act What income is eligible for this election? When is your section 217 return due? Completing your section 217 return Identification Income Federal and provincial or territorial tax Federal and provincial or territorial non-refundable tax credits Can you reduce the non-resident tax withheld at source? Tax treaties Your opinion counts For more information What if you need help? Forms and publications TIPS (Tax Information Phone Service) Contact us By telephone Regular hours of service Extended hours of service Regular hours of service Extended hours of service By mail Employers' Guide: Payroll Deductions and Remittances (Rev. 2017) T4001 Is this guide for you? What's new? Canada Pension Plan Enhancement Format availability in 2017 New benefit to support caregivers Remittance due dates View remitting requirements Remittance thresholds for employer source deductions Chapter 1 – General information Do you need to register for a payroll program account? Contacts and authorized representatives Employment in Quebec Are you an employer? Employment by a trustee Trustee in bankruptcy All other trustees Payer of other amounts What are your responsibilities? Keeping records Social insurance number SIN beginning with the number 9 Payroll deductions tables Which tax tables should you use? Employment income Non-employment income When an employee leaves If you do not have any employees for a period of time Changes to your business entity If your business stops operating or the partner or proprietor dies If you change your legal status, restructure, or reorganize If your business amalgamates Filing information returns Penalties, interest, and other consequences Failure to deduct Penalty for failure to deduct Failure to remit amounts deducted Penalty for failure to remit and remitting late Interest Summary convictions Director's liability Cancel or waive penalties or interest How to appeal a payroll assessment or a CPP/EI ruling Chapter 2 – Canada Pension Plan contributions Impact of contribution errors When to deduct CPP contributions Employment in Quebec Amounts and benefits from which you have to deduct CPP contributions Employment, benefits, and payments from which you do not deduct CPP contributions Employment Benefits and payments CPP contribution rate and maximum Calculating the CPP deductions Starting and stopping CPP deductions Special situations Your employee turns 18 in the year Your employee turns 70 in the year Your employee gives you a completed Form CPT30 Your employee is considered to be disabled under the CPP Your employee dies in the year Checking the amount of CPP you deducted Commissions paid at irregular intervals CPP overpayment Recovering CPP contributions CPP coverage by an employer resident outside Canada Canada's social security agreements with other countries Chapter 3 – Employment insurance premiums When to deduct EI premiums Amounts and benefits from which you have to deduct EI premiums Employment, benefits, and payments from which you do not deduct EI premiums Employment Benefits and payments EI premium rate and maximum Employment in Quebec Reducing the rate of your EI premiums if you have a short-term disability plan Calculating EI deductions EI overpayment Recovering EI premiums Establishing the number of insurable hours Record of employment (ROE) Chapter 4 – Pensionable and insurable earnings review (PIER) Why is a review important? CPP deficiency calculations EI deficiency calculations Security options on PIER listings Multiple T4 returns Chapter 5 – Deducting income tax Form TD1, Personal Tax Credits Return Employment in Quebec Claim codes Request for more tax deductions from employment income Deduction for living in a prescribed zone Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions Tax deductions from commission remuneration Employees who earn commissions without expenses Employees who earn commissions with expenses Form TD3F, Fisher's Election to Have Tax Deducted at Source Remuneration from which you have to deduct income tax Reducing remuneration on which you have to deduct income tax Letter of authority RRSP contributions you withhold from remuneration Contributions to an RPP Calculating income tax deductions Tax deductions on other types of income Labour-sponsored funds tax credits Non-resident employees who carry out services in Canada Application for a waiver of tax withholding Chapter 6 – Special payments Advances Bonuses, retroactive pay increases, or irregular amounts CPP contributions EI premiums Income tax Death of an employee CPP contributions EI premiums Income tax Director's fees Employment income You only pay director's fees You pay director's fees as well as a salary Application for a waiver of tax withholding Director's fees paid to a corporation or partnership Resident corporation or partnership Non-resident corporation or partnership Employees profit sharing plan Overtime pay CPP contributions, EI premiums, and income tax Qualifying retroactive lump-sum payments CPP contributions, EI premiums, and income tax Retirement compensation arrangements Withholding and remitting Retiring allowances Income tax CPP contributions and EI premiums Transfer of a retiring allowance Salary deferrals Non-prescribed plans or arrangements Prescribed plans or arrangements CPP contributions EI premiums Income tax Withdrawal from the prescribed plan Vacation pay and public holidays The employee takes holidays CPP contributions EI premiums Income tax The employee does not take holidays CPP contributions EI premiums Income tax Vacation pay trust Wages in lieu of termination notice Wage-loss replacement plans CPP contributions and EI premiums Income tax and reporting Workers' compensation claims Approved claims Regular salary paid to an employee Advances or loans paid to an employee Adjustment period for new workers' compensation claims Denied claims Regular employment income paid to an employee Advances or loans paid to an employee Advances by a third party Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST) Chapter 7 – Special situations Barbers and hairdressers, taxi drivers and drivers of other passenger-carrying vehicles Barbers and hairdressers CPP contributions and income tax EI premiums Taxi drivers and drivers of other passenger-carrying vehicles CPP contributions and income tax EI premiums Emergency services volunteers Rules for CPP contributions, EI premiums, and income tax deductions CPP contributions EI premiums Income tax Employees of a temporary-help service firm Employing a caregiver, baby-sitter, or domestic worker When are you considered to be an employer? Employment in Canada by certified non-resident employers Employment outside Canada CPP contributions EI premiums Income tax Global Affairs Canada Fishers and employment insurance Indian employees Definitions Indian Reserve Indian living on a reserve Employer resident on a reserve Guidelines Taxable salary or wages paid to Indians CPP contributions, EI premiums, and income tax Non-taxable salary or wages paid to Indians Canada Pension Plan Employment insurance Placement and employment agency workers Seasonal agricultural workers program Special or extra duty pay for police officers Chapter 8 – Remitting payroll Are you a new remitter? Remitter types and due dates Average monthly withholding amount (AMWA) Quarterly remitting for new small employers Regular remitter Quarterly remitter Accelerated remitter Threshold 1 Threshold 2 Associated corporations Remittance frequency What if your remittance due date falls on a Saturday, Sunday, or public holiday? Remittance forms Form PD7A Form PD7A Form PD7A(TM) Form PD7A(TM) Form PD7A-RB Form PD7A-RB has two parts: Missing or lost remittance forms Not making a remittance TeleReply Remittance methods How to make a remittance Online payment methods Online or telephone banking My Payment Pre-authorized debit Third-party service provider Other payment methods Wire transfers Pay at your Canadian financial institution Can I request a payment arrangement? Do you have more than one account? Notice of assessment Service bureaus Remitting error Appendix 1 – Which payroll table should you use? Appendix 2 – Calculation of CPP contributions (single pay period) Appendix 3 – Calculation of CPP contributions (multiple pay periods or year-end verification) Appendix 4 – Canada's social security agreements with other countries Appendix 5 – Calculation of employee EI premiums (2017) Appendix 6 – Special payments chart Online services Handling business taxes online Sign up for online mail Authorizing the withdrawal of a pre-determined amount from your bank account Electronic payments For more information What if you need help? Direct deposit Forms and publications Teletypewriter (TTY) users Service complaints Reprisal complaint Electronic mailing lists Addresses Tax services offices (TSO) Tax centres (TC) National Verification and Collection Centres (NVCC) Tax information videos Publications for employers Employers' Guide: Taxable Benefits and Allowances (Rev. 2017) T4130 Is this guide for you? What's new? Group term life insurance policies-Employer paid premiums Home relocation loan deduction Municipal officer's expense allowance Social events Transit passes Chapter 1 – General information Do you give your employee a benefit, an allowance, or an expense reimbursement? What are your responsibilities? Determine if the benefit is taxable Calculate the value of the benefit Goods and services tax/harmonized sales tax (GST/HST) and provincial sales tax (PST) Calculate payroll deductions Cash benefits Non-cash or near-cash benefits Benefits chart File an information return Employee's allowable employment expenses Chapter 2 – Automobile and motor vehicle benefits and allowances Definitions Automobile Employee Motor vehicle Personal driving (personal use) Regular place of employment Point of call Vehicle Keeping records Calculating automobile benefits Calculating a standby charge for automobiles you own or lease Availability and personal use Reducing the standby charge Automobile you own Fleet operations Automobile you lease Lump-sum lease payments Employees who sell or lease automobiles Calculating an operating expense benefit Optional calculation Fixed rate calculation Reimbursement for operating expenses Operating expenses paid by employee to third party Benefit for motor vehicles not defined as an automobile Motor vehicle home at night policy Reporting automobile or motor vehicle benefits Employee's benefit Shareholder's benefit Automobile and motor vehicle allowances Reasonable per-kilometre allowance Reasonable allowance rates Per-kilometre allowance rates that we do not consider reasonable Flat-rate allowance Combination of flat-rate and reasonable per-kilometre allowances Reimbursement or advance for travel expenses Averaging allowances Reducing tax deductions at source on automobile or motor vehicle allowances Reporting automobile or motor vehicle allowances on the T4 slip Chapter 3 – Other benefits and allowances Board and lodging Exceptions to the rules Board and lodging allowances paid to players on sports teams or members of recreation programs Board, lodging, and transportation – Special work sites and remote work locations Special work sites Board and lodging Transportation Form TD4, Declaration of Exemption – Employment at a Special Work Site Remote work locations Board and lodging Transportation Form TD4, Declaration of Exemption – Employment at a Special Work Site Payroll deductions Cellular phone and Internet services Child care expenses Counselling services Disability-related employment benefits Payroll deductions Discounts on merchandise and commissions from personal purchases Education benefits Educational allowances for children Subsidized school services Scholarships, bursaries, tuition, and training Employee Scholarship and tuition fees Family members Employment insurance premium rebate Gifts, awards, and long-service awards Rules for gifts and awards Value Policy for non-cash gifts and awards Long-service awards Awards from a manufacturer Group term life insurance policies – Employer-paid premiums Calculating the benefit Reporting the benefit Housing or utilities Housing or utilities – benefit Special circumstances that reduce the value of a housing benefit Housing or utilities – allowance Reporting the benefit Clergy residence Clergy residence deduction Reducing remuneration from which you have to deduct income tax and CPP Income maintenance plans and other insurance plans Non-group plans Group sickness or accident insurance plans Employee-pay-all plans Group disability benefits – insolvent insurer Loans – interest-free and low-interest Exceptions Loans received because of employment Loans received because of shareholdings Home-purchase loan Home-relocation loans Calculating the employee home-relocation loan deduction Forgiven loans Reporting the benefit Prescribed interest rates Loyalty and other points programs Meals Overtime meals or allowances Subsidized meals Medical expenses Moving expenses and relocation benefits Moving expenses paid by employer that are not a taxable benefit Moving expenses paid by employer that are a taxable benefit Housing loss Non-accountable allowances Municipal officer's expense allowance Parking Pooled registered pension plans (PRPP) Power saws and tree trimmers Premiums under provincial hospitalization, medical care insurance, and certain Government of Canada plans Private health services plan premiums Professional membership dues Recreational facilities and club dues Registered retirement savings plans (RRSPs) Payroll deductions Security options Taxable benefit Cash outs Payroll Deductions Cash outs Options Security options deduction – Paragraph 110(1)(d) Security options deduction for the disposition of shares of a Canadian-controlled private corporation – Paragraph 110(1)(d.1) Social events Spouse's or common-law partner's travelling expenses Tax-free savings account (TFSA) Tickets Reporting the benefit Tool reimbursement or allowance Transportation passes Airline passes for employees and retirees of an airline company Transit passes Transit passes – employees of a transit company Travel allowance Part-time employee Salesperson and clergy Other employees Reasonable travel allowances Uniforms and protective clothing Chapter 4 – Housing and travel assistance benefits paid in a prescribed zone Accommodation or utilities provided by the employer Places with developed rental markets Places without developed rental markets Accommodations you own Accommodations you rent from a third party Allowable ceiling amounts Board, lodging, and transportation at a special work site Travel assistance benefits Medical travel assistance Payroll deductions Form TD1, Personal Tax Credits Return Chapter 5 – Remitting the GST/HST on employee benefits Employee benefits Employee does not pay the GST/HST on taxable benefits Do you have to remit GST/HST on employee taxable benefits? Situations where you are not considered to have collected the GST/HST How to calculate the amount of the GST/HST you are considered to have collected Value of the benefit Automobile operating expense benefits Benefits other than automobile operating expense benefits When and how to report the GST/HST you are considered to have collected Automobile benefits – standby charges, operating expense benefit, and reimbursements Input tax credits (ITCs) ITC restrictions Club memberships Exclusive personal use Property supplied by way of lease, licence, or similar arrangement Property acquired before 1991 or from a non-registrant Benefits chart Online services Handling business taxes online Sign up for online mail Authorizing the withdrawal of a pre-determined amount from your bank account For more information What if you need help? Addresses Tax services offices Tax centres Direct deposit Due dates Cancel or waive penalty or interest Electronic mailing list Forms and publications Related publications Reprisal complaint Service complaints Tax information videos Teletypewriter (TTY) users Employment Expenses (Rev. 2017) T4044 Before you start Is this guide for you? Forms included in this guide Chapter 1 - Keeping records Chapter 2 - Employees earning commission income Employment conditions Deductible expenses Accounting and legal fees Advertising and promotion Allowable motor vehicle expenses (including capital cost allowance) Food, beverages, and entertainment expenses Lodging Parking Supplies Other expenses Work-space-in-the-home expenses Chapter 3 - Employees earning a salary Deductible expenses Accounting and legal fees Allowable motor vehicle expenses (including capital cost allowance) Travelling expenses Parking Supplies Other expenses Work-space-in-the-home expenses Chapter 4 - Transportation employees Employees of a transport business Railway employees Other transport employees How to claim your expenses Meals Meal expenses of long-haul truck drivers Lodging and showers Trips to the United States Chapter 5 - Employees working in forestry operations Chapter 6 - Employed artists Part 1 - Artists' employment expenses Part 2 - Musical instrument expenses Deductible expenses How to calculate your expenses Capital cost allowance Change in use Chapter 7 - Employed tradespersons Deduction for tools Employed apprentice mechanics Deduction for tools for an eligible apprentice mechanic Disposition of tools Chapter 8 - Motor vehicle expenses Keeping records Deductible expenses What kind of vehicle do you own? Motor vehicle Passenger vehicle Joint ownership Employment use of a motor vehicle Interest expense Leasing costs Repayments and imputed interest Chapter 9 - Capital cost allowance (depreciation) Definitions Can you claim CCA? Classes of depreciable properties Class 8 Class 10 Class 10.1 How to calculate capital cost allowance Part A - Classes 8 and 10 property Column 2 - Undepreciated capital cost at the beginning of the year Column 3 - Cost of acquisitions during the year Column 4 - Proceeds of disposition during the year Column 5 - Undepreciated capital cost after acquisitions and dispositions Column 6 - Adjustments for current-year acquisitions Column 7 - Base amount for capital cost allowance claim Column 9 - Capital cost allowance for the year Column 10 - Undepreciated capital cost at the end of the year Part B - Class 10.1 property Column 2 - Undepreciated capital cost at the beginning of the year Column 3 - Cost of acquisitions during the year Column 4 - Proceeds of disposition during the year Column 5 - Base amount for capital cost allowance claim Column 7 - Capital cost allowance for the year Column 8 - Undepreciated capital cost at the end of the year Chapter 10 - Employee goods and services tax/harmonized sales tax (GST/HST) rebate How a rebate affects your income tax Do you qualify for the rebate? Expenses that qualify for the rebate Non-eligible expenses Capital cost allowance (CCA) Filing deadline Rebate restriction Overpayment of a rebate How to complete Form GST370, Employee and Partner GST/HST Rebate Application Part A - Identification Part B - Rebate calculation Situation 1 - The only expenses you deducted are union, professional, or similar dues Situation 2 - You deducted only GST expenses Situation 3 - You deducted only HST expenses Situation 4 - You deducted both GST and HST expenses Situation 5 - Property and services brought into a participating province Situation 6 - The only expenses you deducted are tradesperson's tools expenses and/or apprentice mechanic tools expenses Part C - Declaration by claimant's employer Part D - Certification After completing your rebate application Quebec sales tax rebate Example References Forms Guides Information circulars Interpretation bulletins For more information What if you need help? Forms and publications My Account How to register Sign up for online mail Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Step 1 - Talk to us Step 2 - Contact the CRA Service Complaints Program Step 3 - Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Farming Income and the AgriStability and AgriInvest Programs Guide (Rev. 2016) RC4060 Before you start Is this guide for you? AgriStability and AgriInvest contact information Penalties Forms and publications Where to mail your forms and return Do you need more information? What's new for 2016? Eligible capital property Chapter 1 – General information Farming income How to report your farming income Fiscal period Reporting methods Cash method Accrual method Changing your method of reporting income Business records Benefits of keeping complete and organized records Consequences of not keeping adequate records Income records Expense records Time limits for keeping records Instalment payment Dates to remember Important information for AgriStability and AgriInvest Employment insurance (EI) benefits for self-employed persons Goods and services tax/harmonized sales tax (GST/HST) The GST/HST Registry What is a partnership? Limited partnership Reporting partnership income Partnership losses Filing requirements for partnerships Capital cost allowance (CCA) Eligible capital expenditures GST/HST rebate for partners Investment tax credit (ITC) Chapter 2 – Your AgriStability and AgriInvest programs Participating in the programs AgriStability Are you eligible? How to participate AgriStability benefit calculations AgriStability program fee AgriStability administrative cost share (ACS) AgriInvest Are you eligible? How to participate AgriInvest benefit calculations Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals Deceased participant Form T1164, Statement B – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations Additional expenses (partnerships) Completing the forms Adjustments Participant identification Your farming information Province/Territory of main farmstead Number of years farmed Final year of farming Industry code Livestock farm Other animal specialties farm Field-crop farm Production cycle Contact person information Federal public office holder or employee of Agriculture and Agri-Food Canada (AAFC) Identification Fiscal period Method of accounting Was your farming operation involved in any of the following? Chapter 3 – Calculating your farming income or loss Farming income Point of sale Payment in kind Gifts Crop share Farming activities outside Canada Commodity futures Grains, oilseeds, and special crops Storage and cash purchase tickets Cash advances Tree production Allowable tree production Non-allowable tree production Woodlots Livestock Custom feedlot operators PMU contract cancellation income Canadian Food Inspection Agency (CFIA) – Destroying livestock Prescribed drought region (PDR) or prescribed flood region (PFR) Income deferral Income earned from the use of commodities Private insurance proceeds for allowable commodities Insurance proceeds for allowable expense items Income from program payments Canadian Food Inspection Agency (CFIA) Payments from the AgriStability and AgriInvest programs Other farming income Rental income Line 9540 – Other program payments Line 9544 – Business risk management (BRM) and disaster assistance program payments Line 9574 – Resales, rebates, GST/HST for allowable expenses Line 9575 – Resales, rebates, GST/HST for non-allowable expenses, and recapture of capital cost allowance (CCA) Recapture of capital cost allowance (CCA) Line 9601 – Agricultural contract work Line 9605 – Patronage dividends Line 9607 – Interest Line 9610 – Gravel Line 9611 – Trucking (farm-related only) Line 9612 – Resales of commodities purchased Line 9613 – Leases (gas, oil well, surface, etc.) Line 9614 – Machine rentals Line 9600 – Other (specify) Insurance proceeds Miscellaneous Summary of income Expenses Current or capital expenses Eligible disability-related modifications made to a building Grants, credits, and rebates GST/HST input tax credits Prepaid expenses Business-use-of-home expenses Commodity purchases Livestock owners and custom feedlot operators with prepared feed purchases Livestock owners with custom feeding expenses Ranch fur operators with prepared feed purchases Livestock insurance premiums Repayment of program benefits AgriStability program – Allowable expenses Line 9661 – Containers and twine Line 9662 – Fertilizers and soil supplements Line 9663 – Pesticides and chemical treatments Line 9665 – Insurance premiums (AgriInsurance/production or crop insurance) Line 9713 – Veterinary fees, medicine, and breeding fees Line 9714 – Minerals and salts Line 9764 – Machinery (gasoline, diesel fuel, oil) Line 9799 – Electricity Line 9801 – Freight and shipping Line 9802 – Heating fuel Line 9815 – Arm's length salaries Line 9822 – Storage/drying Line 9836 – Commissions and levies Line 9953 – Private insurance premiums for allowable commodities AgriStability program – Non-allowable expenses Line 9760 – Machinery (repairs, licences, insurance) Line 9765 – Machinery lease/rental Line 9792 – Advertising and promotion costs Line 9795 – Building and fence repairs Line 9796 – Land clearing and draining Improving land Line 9798 – Agricultural contract work Line 9804 – Other insurance premiums Premiums to private health services plans Definitions How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2016 If you had employees throughout 2016 Amount 1 Amount 2 If you had employees for part of the year Amount 1 Amount 2 Undeducted premiums Line 9805 – Interest (real estate, mortgage, other) Line 9807 – Memberships/subscription fees Line 9808 – Office expenses Line 9809 – Legal and accounting fees Line 9810 – Property taxes Line 9811 – Rent (land, buildings, pastures) Line 9816 – Non-arm's length salaries Line 9819 – Motor vehicle expenses Business use of a motor vehicle Simplified logbook for motor vehicle expense provisions More than one vehicle Line 9820 – Small tools Line 9821 – Soil testing Line 9823 – Licences/permits Line 9824 – Telephone Line 9825 – Quota rental Line 9826 – Gravel Line 9827 – Purchases of commodities resold Line 9829 – Motor vehicle interest and leasing costs Repayments and imputed interest Joint ownership of a passenger vehicle Line 9935 – Allowance on eligible capital property Line 9936 – Capital cost allowance Line 9937 – Mandatory inventory adjustment – prior year Line 9938 – Optional inventory adjustment –prior year Line 9896 – Other (specify) Summary of expenses Summary of income and expenses Line 9959 – Gross farming income Line 9969 – Net income (loss) before adjustments Line 9940 – Other deductions Line 9941 – Optional inventory adjustment – current year Line 9942 – Mandatory inventory adjustment – current year Definitions Valuing your purchased inventory Partnership information – Your share of line a Line 9974 – GST/HST rebate for partners received in the year Line 9934 – Adjustment to business-use-of-home expenses Line 9946 – Net farming income (or loss) Partnership information chart AgriStability/AgriInvest Participant Identification Number (PIN) Partners' names Percentage (%) share Chapter 4 – Capital cost allowance (CCA) What is CCA? Definitions How much CCA can you claim Other things you should know about CCA: Form T1175, Farming – Calculation of capital cost allowance (CCA) and business-use-of-home expenses Business-use-of-home expenses Area A – Calculation of capital cost allowance (CCA) Column 1 – Class number Column 2 – Undepreciated capital cost (UCC) at the start of the year Column 3 – Cost of additions in the year Area B – Details of equipment additions in the year Area C – Details of building additions in the year Land Column 4 – Proceeds of disposition in the year Area D – Details of equipment dispositions in the year Area E – Details of building dispositions in the year Column 5 – UCC after additions and dispositions Recapture of CCA Terminal loss Column 6 – Adjustment for current-year additions Column 7 – Base amount for CCA Column 8 – Rate (%) Column 9 – CCA for the year Column 10 – UCC at the end of the year Classes of depreciable property Buildings – Classes 1, 3, and 6 Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Small tools – Class 12 (100%) Class 45 (45%) Class 46 (30%) Class 50 (55%) Class 52 (100%) Passenger vehicles – Class 10 and Class 10.1 (30%) Special situations Changing from personal to business use Personal use of property Grants, subsidies, and rebates Non-arm's length transactions Special rules for disposing of a building in the year Replacement property Area F – Details of land additions and dispositions in the year Area G – Details of quota additions and dispositions in the year Details of equity Line 9931 – Total business liabilities Line 9932 – Drawings in 2016 Line 9933 – Capital contributions in 2016 Chapter 5 – Eligible capital expenditures What is an eligible capital expenditure? What is an annual allowance? What is a cumulative eligible capital (CEC) account? How to calculate your annual allowance Sale of eligible capital property – Fiscal period ending in 2016 Farming income from the sale of eligible capital property eligible for the capital gains deduction Election Replacement property Eligible capital property of a deceased taxpayer Chapter 6 – Farm losses Fully deductible farm losses Applying your 2016 farm loss Applying your farm losses from years before 2016 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2016 restricted farm loss Applying your restricted farm losses from years before 2016 Non-deductible farm losses Non-capital losses Chapter 7 – Capital gains What is a capital gain? What is a capital loss? Definitions How to calculate your capital gain or loss Did you sell in 2016 capital property you owned before 1972? Disposing of farmland that includes your principal residence Method 1 Method 2 Restricted farm losses Qualified farm or fishing property and cumulative capital gains deduction What is qualified farm or fishing property? Cumulative capital gains deduction Real property or eligible capital property Transfer of farm or fishing property to a child Transfer of farm or fishing property to a child if a parent dies in the year Transfer of farm or fishing property to a spouse or common-law partner Other special rules Reserves Exchanges or expropriations of property Information reporting of tax avoidance transactions Commodity list Program payment list A Program payment list B Capital cost allowance (CCA) rates How to calculate the mandatory inventory adjustment (MIA) GST/HST rates Online services My Account MyCRA – Mobile app Handling business taxes online Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your bank account Electronic payments For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Cancel or waive penalties or interest Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide (Rev. 2016) RC4408 Before you start Is this guide for you? AgriStability and AgriInvest contact information Federal Administration contact information Provincial Administration contact information Penalties Forms and publications How to send additional information for AgriStability and AgriInvest AgriStability and AgriInvest form deadline Do you need more information? What's new for 2016? Chapter 1 – General information Farming income How to report your farming income Fiscal period Reporting methods Cash method Accrual method Changing your method of reporting income Business records Benefits of keeping complete and organized records Consequences of not keeping adequate records Income records Expense records Time limits for keeping records Instalment payment Dates to remember Important information for AgriStability and AgriInvest Employment insurance (EI) benefits for self-employed persons Goods and services tax/harmonized sales tax (GST/HST) registration The GST/HST Registry What is a partnership? Limited partnership Reporting partnership income Partnership losses Filing requirements for partnership information return Capital cost allowance (CCA) Eligible capital expenditures GST/HST rebate for partners Investment tax credit (ITC) Chapter 2 – Your AgriStability and AgriInvest programs Participating in the programs AgriStability Are you eligible? How to participate AgriStability benefit calculations AgriStability program fee AgriStability administrative cost share (ACS) AgriInvest Are you eligible? How to participate AgriInvest benefit calculations Form T1273, Statement A – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals Deceased participant Form T1274, Statement B – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations Additional expenses (partnerships) Completing the forms Adjustments Section 1 – Participant information Participant identification Your farming information Province/Territory of main farmstead Number of years farmed Final year of farming Industry code Production cycle Contact person information Federal public office holder or employee of Agriculture and Agri-Food Canada (AAFC) Section 2 – Other farming information Location of main farmstead Combining under the AgriStability program Section 3 – Identification Fiscal period Method of accounting Was your farming operation involved in any of the following? Chapter 3 – Calculating your farming income or loss Section 4 – Income Point of sale Payment in kind Gifts Crop share Farming activities outside Canada Commodity futures Grains, oilseeds, and special crops Storage and cash purchase tickets Cash advances Tree production Allowable tree production Non-allowable tree production Woodlots Livestock Custom feedlot operators PMU contract cancellation income Canadian Food Inspection Agency (CFIA) – Destroying livestock Prescribed drought region (PDR) and prescribed flood region (PFR) Income deferral Income earned from the use of commodities Private insurance proceeds for allowable commodities Insurance proceeds for allowable expense items Income from program payments Canadian Food Inspection Agency (CFIA) Payments from the AgriStability and AgriInvest programs Other farming income Rental income Line 9540 – Other program payments Line 9544 – Business risk management (BRM) and disaster assistance program payments Line 9574 – Resales, rebates, GST/HST for allowable expenses Line 9575 – Resales, rebates, GST/HST for non-allowable expenses, and recapture of capital cost allowance (CCA) Recapture of capital cost allowance (CCA) Line 9601 – Agricultural contract work Line 9605 – Patronage dividends Line 9607 – Interest Line 9610 – Gravel Line 9611 – Trucking (farm-related only) Line 9612 – Resales of commodities purchased Line 9613 – Leases (gas, oil well, surface, etc.) Line 9614 – Machine rentals Line 9600 – Other (specify) Insurance proceeds Miscellaneous Summary of income Section 5 – Expenses Current or capital expenses Eligible disability-related modifications made to a building Grants, credits, and rebates GST/HST input tax credits Prepaid expenses Business-use-of-home expenses Commodity purchases Livestock owners and custom feedlot operators with prepared feed purchases Livestock owners with custom feeding expenses Ranch fur operators with prepared feed purchases Livestock insurance premiums Repayment of program benefits AgriStability program – Allowable expenses Line 9661 – Containers and twine Line 9662 – Fertilizers and soil supplements Line 9663 – Pesticides and chemical treatments Line 9665 – Insurance premiums (AgriInsurance/production or crop insurance) Line 9713 – Veterinary fees, medicine, and breeding fees Line 9714 – Minerals and salts Line 9764 – Machinery (gasoline, diesel fuel, oil) Line 9799 – Electricity Line 9801 – Freight and shipping Line 9802 – Heating fuel Line 9815 – Arm's length salaries Line 9822 – Storage/drying Line 9836 – Commissions and levies Line 9953 – Private insurance premiums for allowable commodities AgriStability program – Non-allowable expenses Line 9760 – Machinery (repairs, licences, insurance) Line 9765 – Machinery lease/rental Line 9792 – Advertising and promotion costs Line 9795 – Building and fence repairs Line 9796 – Land clearing and draining Line 9798 – Agricultural contract work Line 9804 – Other insurance premiums Premiums to private health services plans Definitions How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2016 If you had employees throughout 2016 Amount 1 Amount 2 If you had employees for part of the year Amount 1 Amount 2 Undeducted premiums Line 9805 – Interest (real estate, mortgage, other) Line 9807 – Memberships/subscription fees Line 9808 – Office expenses Line 9809 – Legal and accounting fees Line 9810 – Property taxes Line 9811 – Rent (land, buildings, pastures) Line 9816 – Non-arm's length salaries Line 9819 – Motor vehicle expenses Business use of a motor vehicle Simplified logbook for motor vehicle expense provisions More than one vehicle Line 9820 – Small tools Line 9821 – Soil testing Line 9823 – Licences/permits Line 9824 – Telephone Line 9825 – Quota rental Line 9826 – Gravel Line 9827 – Purchases of commodities resold Line 9829 – Motor vehicle interest and leasing costs Repayments and imputed interest Joint ownership of a passenger vehicle Line 9935 – Allowance on eligible capital property Line 9936 – Capital cost allowance Line 9937 – Mandatory inventory adjustment – prior year Line 9938 – Optional inventory adjustment – prior year Line 9896 – Other (specify) Summary of expenses Section 6 – Summary of income and expenses Line 9959 – Gross farming income Line 9969 – Net income (loss) before adjustments Line 9940 – Other deductions Line 9941 – Optional inventory adjustment – current year Line 9942 – Mandatory inventory adjustment – current year Definitions Valuing your purchased inventory Partnership information – Your share of line a Line 9974 – GST/HST rebate for partners received in the year Line 9934 – Adjustment to business-use-of-home expenses Line 9946 – Net farming income (or loss) Partnership information chart AgriStability/AgriInvest Participant Identification Number (PIN) Partners' names Percentage (%) share Chapter 4 – Inventories, purchased inputs, deferrals, receivables and payables For AgriStability participants AgriStability program codes Commodities with published prices Commodities with unpublished prices Has the productive capacity of this operation decreased during the program year due to disaster circumstances? Section 7 – Livestock inventory valuation Livestock lease agreements How to complete the columns Section 8 – Crop inventory valuation and productive capacity Crops or forage carried over from 2015 but no longer seeded or produced in 2016 Landlords/tenants Commodity pools Perishable horticulture crops Swath grazing Organic production Unharvestable acres Snowed-under crops Standing crops Multi-stage crops Berry producers Sod producers Christmas trees Tree farms Managed natural stands Pre-harvested Harvested How to complete the columns Section 9 – Livestock productive capacity Livestock lease agreements Productive animals Code 104 – Cattle Codes 123 and 145 – Hogs Codes 105 and 106 – Number of feeder livestock – Cattle Codes 124 and 125 – Number of feeder livestock – Hogs Custom fed livestock Supply managed commodities Ranch fur operators Other (specify below) Section 10 – Purchased inputs Livestock owners and custom feedlot operators with prepared feed purchases Ranch fur operators with prepared feed expenses How to complete the columns Code and description End of year amount Section 11 – Deferred income and receivables Commodity pools Custom feedlot operator income Prescribed drought region (PDR), prescribed flood region (PFR) and Canadian Food Inspection Agency (CFIA) deferrals Perishable horticulture crops How to complete the columns Code and description Ending receivables and income deferred to 2017 Section 12 – Accounts payable Livestock owners and custom feedlot operators with prepared feed purchases Livestock owners with custom feeding expenses Ranch fur operators with prepared feed expenses How to complete the columns Code and description End of year amount Chapter 5 – Capital cost allowance (CCA) What is CCA? Definitions How much CCA can you claim Other things you should know about CCA: Form T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-Use-of-Home Expenses Business-use-of-home expenses Area A – Calculation of capital cost allowance (CCA) Column 1 – Class number Column 2 – Undepreciated capital cost (UCC) at the start of the year Column 3 – Cost of additions in the year Area B – Details of equipment additions in the year Area C – Details of building additions in the year Land Column 4 – Proceeds of disposition in the year Area D – Details of equipment dispositions in the year Area E – Details of building dispositions in the year Column 5 – UCC after additions and dispositions Recapture of CCA Terminal loss Column 6 – Adjustment for current-year additions Column 7 – Base amount for CCA Column 8 – Rate (%) Column 9 – CCA for the year Column 10 – UCC at the end of the year Classes of depreciable property Buildings – Classes 1, 3, and 6 Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Small tools – Class 12 (100%) Class 45 (45%) Class 46 (30%) Class 50 (55%) Class 52 (100%) Passenger vehicles – Class 10 and Class 10.1 (30%) Special situations Changing from personal to business use Personal use of property Grants, subsidies, and rebates Non-arm's length transactions Special rules for disposing of a building in the year Replacement Property Area F – Details of land additions and dispositions in the year Area G – Details of quota additions and dispositions in the year Details of equity Line 9931 – Total business liabilities Line 9932 – Drawings in 2016 Line 9933 – Capital contributions in 2016 Chapter 6 – Eligible capital expenditures What is an eligible capital expenditure? What is an annual allowance? What is a cumulative eligible capital (CEC) account? How to calculate your annual allowance Sale of eligible capital property – Fiscal period ending in 2016 Farming income from the sale of eligible capital property eligible for the capital gains deduction Election Replacement property Eligible capital property of a deceased taxpayer Chapter 7 – Farm losses Fully deductible farm losses Applying your 2016 farm loss Applying your farm losses from years before 2016 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2016 restricted farm loss Applying your restricted farm losses from years before 2016 Non-deductible farm losses Non-capital losses Chapter 8 – Capital gains What is a capital gain? What is a capital loss? Definitions How to calculate your capital gain or loss Did you sell capital property in 2016 that you owned before 1972? Disposing of farmland that includes your principal residence Method 1 Method 2 Restricted farm losses Qualified farm or fishing property and cumulative capital gains deduction What is qualified farm or fishing property? Cumulative capital gains deduction Real property or eligible capital property Transfer of farm or fishing property to a child Transfer of farm or fishing property to a child if a parent dies in the year Transfer of farm or fishing property to a spouse or common-law partner Other special rules Reserves Exchanges or expropriations of property Information reporting of tax avoidance transactions Commodity list Program payment list A Program payment list B Inventory code list Edible horticulture Forage Forage seed Grains and oilseeds Inedible horticulture Bees and bee by products Bison Cattle Dairy Goats Horses Other livestock Poultry Ratites Sheep Swine Regional code list Units of measurement code list Expense code list Productive capacity list Capital cost allowance (CCA) rates How to calculate the mandatory inventory adjustment (MIA) GST/HST rates Online services My Account MyCRA – Mobile app Handling business taxes online Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your bank account Electronic payments For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Cancel or waive penalties or interest Gifts and Income Tax (Rev. 2017) P113 Is this pamphlet for you? What's new for 2017? Definitions Gifts and income tax What gifts can you claim? Gifts to registered charities and other qualified donees Gifts of non-qualifying securities Gifts to U.S. charities Gifts to Canada, a province, or a territory Gifts of ecologically sensitive land Gifts of certified cultural property Carrying forward tax credits Gifts in the year of death Gifts in kind Do you have property to donate? Donation appraisals Who should appraise a gift? The appraisal report Donation date Official donation receipts Gifts of capital property Deemed fair market value Gifts of securities acquired under a security option plan Granting of options to a qualified donee Are you an artist? Are you an art or antiques dealer? Listed personal property Capital gains and losses Capital gains realized on gifts of certain capital property Calculating your increased donation limit Chart 1 – Gifts of capital property Chart 2 – Gifts of depreciable property The Cultural Property Export and Import Act Certification of cultural property Designated institutions and public authorities For more information What if you need help? Forms and publications My Account How to register Sign up for online mail Teletypewriter (TTY) users Tax Information Phone Service (TIPS) Service complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Guide for the Partnership Information Return (T5013 Forms) 2017 (Rev. 2017) T4068 Income Tax Guide for Electing Under Section 216 – 2017 (Rev. 2017) T4144 Is this guide for you? Rental income and non-resident tax Electing under section 216 of the Income Tax Act What is a section 216 election? Do you have more than one Canadian rental property? What is the benefit of electing under section 216? When is your section 216 return due? What if you send the return late? Withholding on net rental income (Form NR6) When should you send us Form NR6? What happens after we approve your Form NR6? If you sent us Form NR6, do you have to file a section 216 return? When is your 2017 section 216 return due? What happens if you do not file your section 216 return by the due date? General information Getting started What do you include with your return and what records do you keep? What if you are missing information? Where should you send your return? Do you have other Canadian-source income? Disposing of your rental property After you file What happens to your return after we receive it? How to change a return? What should you do if you move? Completing your section 216 return Identification Email Address Income Line 126 – Rental income and timber royalties Rental losses Interest income Deductions Line 208 – RRSP/PRPP deduction Line 220 – Support payments made Line 232 – Other deductions Refund or balance owing Line 427 – Minimum tax carryover Line 437 – Total non-resident tax withheld Line 476 – Total tax remitted for the recapture of capital cost allowance (CCA) Line 484 – Refund Direct deposit Line 485 – Balance owing Online Services My Account How to register Sign up for online mail MyCRA mobile app Electronic payments For more information What if you need help? Forms and publications Getting personal tax information Representatives Service complaints Reprisal complaint To contact us By telephone Regular hours of service Extended hours of service Regular hours of service Extended hours of service By mail Keeping Records (Rev. 2013) RC4409 Is this guide for you? Chapter 1 – General Information Why you should keep complete and organized records You are required by law There are benefits for you Consequences of not keeping adequate records What are records? Methods of keeping records Records in paper format Records in electronic format Who has to keep records? Requirements for records Additional records corporations have to keep Additional records trusts have to keep Additional records registered charities and registered Canadian amateur athletic associations have to keep Additional records registered agents for registered political parties or official agents for candidates in a federal election have to keep Records that must be kept by other qualified donees Your responsibilities for record keeping Where to keep your records How long do you need to keep your records? Destroying records early Chapter 2 – Keeping Electronic Records Electronic record keeping E-commerce Requirements for electronic record keeping including e-commerce records Doing business on the Internet Backing up electronic files Requirements for backing up electronic files Imaging Requirements for an acceptable imaging program Managing electronic records and images Retention and disposal of electronic records Business systems evaluation Audit trails required for electronic records Where to keep your electronic records Information and advice Chapter 3 – Payroll Records Chapter 4 – GST/HST Record keeping requirements Informing your customers about GST/HST Sales invoices for GST/HST registrants Disclosing the HST on sales subject to the point-of-sale rebates, or the Ontario First Nations point-of-sale relief Index Related forms and publications Online Services My Account Handling business taxes online Authorizing online access for employees and representatives Receive your CRA mail online Manage online mail Online mail received View mail Electronic payments For more information What if you need help? Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Our service complaint process Tax information videos Your opinion counts Lifelong Learning Plan (LLP) (Rev. 2017) RC4112 Is this guide for you? Definitions Chapter 1 – Participating in the LLP Who can participate in the LLP? What conditions does the LLP student have to meet? What is a qualifying educational program? What is a designated educational institution? Who is a full-time student? Who can be enrolled on a part-time basis? What happens if the LLP student does not enrol in the program in time? How much you can withdraw When can you make LLP withdrawals? How to make an LLP withdrawal Filing an income tax and benefit return How the withdrawal from your RRSP affects your RRSP deduction What happens if the LLP student leaves the educational program? Can an LLP withdrawal be cancelled How to cancel your LLP withdrawal Due date for cancellation payment Questions you may have How often can I participate in the LLP? Can my spouse or common-law partner and I participate in the LLP at the same time? Can I make LLP withdrawals from more than one RRSP? Can I make LLP withdrawals for other purposes? Can I participate in the LLP and in the Home Buyers' Plan at the same time? Chapter 2 – Repaying your withdrawals When and how much to repay How to make your repayments Contributions you cannot designate If you want to repay earlier If you repay less than the amount required If you repay more than the amount required for a year Situations when the repayments have to be made in less than 10 years If the person who made the LLP withdrawal dies LLP election on death If you become a non-resident of Canada Your options in the year you turn 71 Appendix – Effect of LLP on RRSP deductions Online services My Account How to register Sign up for online mail MyCRA – Mobile app Electronic payments For more information What if you need help? Electronic mailing lists Forms and publications Guide Forms Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Medical Expenses (Rev. 2017) RC4065 Is this guide for you? What's new? Fertility-related expenses General information How do you claim medical expenses? What amount can you claim? For which period can you claim these expenses? Credits or deductions related to medical expenses Refundable medical expense supplement Disability support deduction Who is a medical practitioner? What are the most common medical expenses that you can claim? Attendant care and care in a facility Who can claim these expenses? What can you claim as medical expenses? Full-time care or specialized care Salaries and wages Sample statement for attendant care expenses Are you claiming the disability amount? Can you claim both attendant care as medical expenses and the disability amount, and what certification do you need? What is more beneficial? Care, treatment, and training Construction and renovation Devices, equipment, and supplies Gluten-free food products What is the incremental cost? What food products are eligible? What documents do you need to keep? Prescribed drugs, medications, and other substances Service animals Services and fees Travel expenses Expenses you can claim At least 40 kilometres At least 80 kilometres Meal and vehicle expenses Accommodations Expenses you cannot claim What are the most common medical expenses that you cannot claim? What documents do you need to keep? Online services My Account How to register Sign up for online mail For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Index NETFILE: Filing Your Tax Return Using the Internet (Rev. 2006) RC4211 What is NETFILE? Why use NETFILE? Is there a cost for NETFILE? How do you file your return? Is NETFILE secure and confidential? What returns cannot be sent by NETFILE? Can you use NETFILE if you did not receive a tax package? What if you have a balance owing on your return? Is your return more likely to be selected for review if you use NETFILE? Need more information? Newcomers to Canada (Rev. 2017) — T4055 Is this pamphlet for you? Before you start Are you a resident of Canada? What are residential ties? Do you need help determining your residency status? Canada's tax system Compliance The underground economy Social insurance number Goods and services tax/harmonized sales tax credit Canada child benefit and child disability benefit Property you owned before you arrived in Canada Unwinding a deemed disposition for returning residents Previously deferred tax Do you have to file a tax return? Which forms book and guide should you use? Transmitting your return by Internet Where can you get the forms book and guide you need? What date is your 2017 tax return due? Completing your tax return Identification and other information Information about your residence Information about your spouse or common-law partner Income Deductions Registered retirement savings plan contributions Pension income splitting Moving expenses Support payments Treaty-exempt income Other deductions Federal tax and credits Federal non-refundable tax credits For the part of the year that you were not a resident of Canada For the part of the year that you were a resident of Canada Federal foreign tax credits Provincial or territorial tax Provincial or territorial non-refundable tax credits Refund or balance owing Provincial or territorial tax credits Tax treaties Online services My Account How to register Sign up for online mail MyCRA – Mobile app MyBenefits CRA mobile app Electronic payments For more information What if you need help? Direct deposit Forms and publications Representatives What should you do if you move? Where to mail your documents Contact the Canada Revenue Agency By telephone Regular hours of service Extended hours of service Regular hours of service Extended hours of service Non-Residents and Income Tax (Rev. 2017) T4058 Is this guide for you? General information Before you start Canada's tax system Were you a non-resident in 2017? What are residential ties? Do you need help determining your residency status? Do you have to file a tax return? Deceased persons Which forms book or tax guide should you use? What date is your 2017 tax return due? Do you need a social insurance number (SIN)? Goods and services tax/harmonized sales tax (GST/HST) credit Taxing Canadian-source income Method 1 - Non-resident tax Do you have to report income that has non-resident tax withheld? Has your Canadian payer withheld more than the necessary non-resident tax? Transfers to registered plans or funds Method 2 - Tax on taxable income Elective returns Electing under section 216 Electing under section 216.1 Reducing tax withheld at source Electing under section 217 Electing under section 218.3 Disposing of certain types of Canadian property Types of Canadian property Taxable Canadian property Procedures to follow Completing your 2017 income tax return Identification Information about your residence Schedule D, Information About Your Residency Status Income Employment income Taxable capital gains Scholarships, fellowships, bursaries, study grants, and artists' project grants Fees, commissions, and self-employment income Are you a non-resident actor providing services in Canada? Deductions Registered pension plan, registered retirement savings plan (RRSP), pooled registered pension plan (PRPP) and specified pension plan (SPP) contributions Child care expenses Moving expenses Losses of other years Calculating your taxes payable Federal tax and credits (Schedule 1) Schedule A, Statement of World Income Federal non-refundable tax credits Schedule B, Allowable Amount of Non-Refundable Tax Credits Your tuition, education, and textbook amounts Provincial or territorial tax (Form 428) Provincial or territorial non-refundable tax credits Provincial or territorial tax credits Overpayments to the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) Eligible educator school supply tax credit Balance owing Tax treaties For more information What if you need help? Forms and publications Tax Information Phone Service (TIPS) To contact us By telephone By mail Northern Residents Deductions for 2017 — RC4650 What are the northern residents deductions? What form should you use? Can you claim the residency deduction? Can you claim the deduction for travel benefits? Do you have all your receipts and other supporting documents? The Canada Revenue Agency needs additional information from you? Your tax return has been selected for review? You have received additional information after your claim has been reviewed? Frequently asked questions Question 1 Answer 1 Question 2 Answer 2 Question 3 Answer 3 Question 4 Answer 4 Question 5 Answer 5 Checklist for Northern Residents Deductions Places of residence Deduction for travel benefits For more information NR4 – Non-Resident Tax Withholding, Remitting, and Reporting (Rev. 2017) T4061 Is this guide for you? What's new? ISO 3166 Country Code List New mailing addresses NR4 Slip and NR4 Summary Before you start What are your responsibilities? Penalties, interest and other consequences Mandatory electronic filing Failure to file information returns over the Internet Failure to deduct Penalty for failure to deduct Failure to remit amounts deducted Penalty for failure to remit and remitting late Late-filing and failing to file the NR4 information return Failure to provide information on an information return Failure to file an ownership certificate Interest Cancel or waive penalties or interest Representatives for non-resident accounts Where to send requests Enquiries and cancellations What is Part XIII tax? Rates of Part XIII tax Beneficial ownership and tax treaty benefits Beneficial ownership Residence and eligibility for treaty benefits Amounts payable to a non-resident agent or nominee/financial intermediary Special payments Pension and similar payments – Residents of all countries Pension and similar payments – Residents of certain countries Rental income from real property in Canada Retirement compensation arrangement Film and video acting services Mutual fund investment distributions Taxable Canadian property gains distributions Assessable distributions Remitting deductions When to remit Are you a new remitter? How to make a remittance Online payment methods Online or telephone banking My Payment Pre-authorized debit Third-party service provider Other payment methods Wire transfers Pay at your Canadian financial institution Non-Resident TeleReply Missing or lost remittance voucher Non-resident tax notice of assessment, notice of reassessment, or notice of collection Applying for a refund of tax overpayments NR4 slips When to fill out the NR4 slip Reporting limits Customized NR4 slips Filling out the NR4 slip Filling out the boxes Box 10 – Year Box 11 – Recipient code Box 12 – Country code for tax purposes Payer or agent identification number Box 13 – Foreign or Canadian tax identification number Box 14 or 24 – Income code Box 15 or 25 – Currency code Box 16 or 26 – Gross income Box 17 or 27 – Non-resident tax withheld Box 18 or 28 – Exemption code Non-resident recipient's name and address Name and address of payer or agent Non-resident account number Distributing copies of the NR4 slips NR4 Summary Filling out the NR4 Summary Year end Line 1 – Non-resident account number Name and address of payer or agent Line 88 – Total number of NR4 slips filed Lines 18 and 22 – Amounts reported on NR4 slips Lines 26 and 28 – Amounts reported on forms NR601 and NR602 Line 30 – Total Line 32 – Total non-resident tax withheld Line 82 – Minus: Total remittances for the year Difference Line 84 – Overpayment Line 86 – Balance due Lines 76 and 78 – Person to contact about this return Certification NR4 information return Loss restriction event Electronic filing methods Filing by Web Forms Filing by Internet File Transfer (XML) Web access code Filing on paper After you file Amending or cancelling slips over the Internet Amending or cancelling slips on paper Adding slips Replacing slips Special reporting situations Non-resident ownership certificates Form NR601, Non-Resident Ownership Certificate – Withholding Tax Form NR602, Non-Resident Ownership Certificate – No Withholding Tax Distributing copies Appendix A – Country codes for tax purposes Appendix B – Income codes Pension and similar payments Deferred profit-sharing plans (DPSP) Registered disability savings plan (RDSP) Tax Free Savings Account (TFSA) Pooled registered pension plan (PRPP) Registered retirement income funds (RRIF) Registered retirement savings plans (RRSP) Superannuation or pension benefits Other payments Social security benefits Mutual fund investment distributions Taxable Canadian property (TCP) Assessable distributions Interest and dividends Interest Dividends Rents, royalties, and franchise payments Miscellaneous payments Appendix C – Exemption codes Appendix D – Currency codes Appendix E – Canadian province or territory or U.S. state, territory or possession codes Canada United States Online services Authorizing the withdrawal of a pre-determined amount from your bank account Electronic payments For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Teletypewriter (TTY) users Addresses Service complaints Reprisal complaint Old Age Security Return of Income Guide for Non-Residents – 2016 (Rev. 2016) T4155 Is this guide for you? Before you start What is the purpose of the Old Age Security Return of Income? What is recovery tax, and does it apply to you? What is net world income? Do you have to file the Old Age Security Return of Income? When is your return due? Exception to the due date of your return Do you have to file another 2016 Canadian return? Completing your Old Age Security Return of Income Identification Email address Social insurance number Person deceased in 2016 Marital status Your old age security number Income Line 113 – Old age security pension Line 114 – Canada or Quebec Pension Plan benefits Line 115 – Other pensions or superannuation Line 121 – Interest and other investment income Interest and dividend income Capital gains Line 126 – Net rental income Line 129 – Registered retirement savings plan income Line 130 – Other income Line 135 – Net business income Deductions Line 221 – Carrying charges and interest expenses Line 232 – Other deductions Refund or balance owing Line 235 – Old age security recovery tax Line 437 – Recovery tax withheld Line 484 – Refund Line 485 – Balance owing After you file What happens to your return after we receive it? How to change a return What should you do if you move? Online services My Account MyCRA – Mobile app For more information Service complaints Reprisal complaint To contact us By telephone Regular hours of service Extended hours of service Regular hours of service Extended hours of service By mail Pension Adjustment Guide (Rev. 2008) T4084 Before You Start Is this guide for you? What if you need more help? 1. What's new? 2. Glossary Additional voluntary contribution (AVC) Annualized earnings Benefit earned Connected person Deferred profit sharing plan (DPSP) Defined benefit limit Defined benefit provision Earnings Forfeited amount Government-sponsored retirement arrangement (GSRA) Money purchase limit Money purchase / Defined contribution provision Multi-employer plan (MEP) PA offset Pension adjustment (PA) Pension adjustment (PA) limits Pension credit Pension credit formula Provision Resident compensation Service Specified Multi-Employer Plan (SMEP) Specified Retirement Arrangement (SRA) Surplus Year's Maximum Pensionable Earnings (YMPE) 3. Calculating Pension Credits – Basic Concepts RRSPs do not generate pension credits or PAs. DPSP RPP Single-employer plans Multi-employer plans (MEPs) Specified multi-employer plans (SMEPs) 4. Calculating Pension Credits for Deferred Profit Sharing Plans (DPSPs) 5. Calculating Pension Credits for Single-Employer Registered Pension Plans (RPPs) 5.1 Money purchase provision 5.2 Defined benefit provision 5.2.1 Flat benefit 5.2.2 Percentage of contributions 5.2.3 Final, best, or career average earnings 5.2.4 Integrated formulas 5.2.5 Combination of benefit formulas 5.2.6 Benefits based on the greater or lower of two formulas 5.2.7 Benefit rates linked to service 6. Calculating Pension Credits for Multi-Employer Plans (MEPs) 6.1 Money purchase provision 6.2 Defined benefit provision 7. Calculating Pension Credits for Specified Multi-Employer Plans (SMEPs) 7.1 Money purchase provision 7.2 Defined benefit provision 8. Calculating Pension Credits for Foreign Plans 8.1 Pension credits for foreign plans 8.2 Prescribed amounts for members of foreign plans 9. Calculating Pension Credits for Specified Retirement Arrangements (SRAs) 10. Calculating Prescribed Amounts for Government – Sponsored Retirement Arrangements (GSRAs) 11. Special Situations 11.1 Member with high earnings 11.2 Member who works for two or more employers in a year 11.3 Member who works only part of a year 11.3.1 Member who joins the plan in the year 11.3.2 Member who retires in the year 11.3.3 Member who ends employment in the year 11.4 Part-time employees 11.5 Disability and other leaves of absence Benefits earned or contributions made during a period of absence Benefits granted or contributions made retroactively for a period of absence 11.6 Optional form pays higher benefit than normal form 11.7 Payment of bonuses or back pay 11.8 Benefit formula amended during the year 11.9 Salary deferral leave plans 11.10 Employee on loan to or from another employer 12. Reporting the Pension Adjustment (PA) 13. Connected Persons Joining a Registered Pension Plan Appendix I — Money Purchase Appendix II — Deferred Profit Sharing Plan Appendix III — Defined Benefit Appendix IV — Specified Multi-Employer Plan (SMEP) Preparing Returns for Deceased Persons 2017 (Rev. 17) — T4011 Before you start Is this guide for you? Which return should you use? What's new for 2017? Definitions Chapter 1 – General information Are you the legal representative? What are your responsibilities as the legal representative? Do you need information from the deceased person's tax records? Goods and services tax/harmonized sales tax (GST/HST) credit received after the date of death What if the deceased was single, separated, divorced, or widowed and received the GST/HST credit? What if the deceased's GST/HST credit is for the deceased and his or her spouse or common-law partner? What if the surviving spouse's or common-law partner's GST/HST credit included a claim for the deceased? What if the deceased is an eligible child? Canada child benefit (CCB) payments received after the date of death Clearance certificate Getting started Common questions and answers Chapter 2 – Final return What date is the final return due? What happens if you file the final return late? What is the due date for a balance owing? How to complete the final return Step 1 – Identification Foreign income Step 2 – Total income Amounts an employer pays to the deceased person's estate Lines 101 to 104 – Employment income Line 113 – Old age security pension Line 114 – CPP or QPP benefits Line 115 – Other pensions or superannuation Line 116 – Elected split-pension amount Line 119 – Employment insurance benefits Lines 120 and 121 – Investment income Line 125 – Registered disability savings plan (RDSP) income Line 127 – Taxable capital gains Line 129 – RRSP income Line 130 – Other income Lines 135 to 143 – Self-employment income Lines 144 to 146 – Other types of income Step 3 – Net income Line 208 – RRSP/PRPP deduction Line 210 – Deduction for elected split-pension amount Step 4 – Taxable income Line 253 – Net capital losses of other years Step 5 – Federal non-refundable tax credits Personal amounts (lines 300 to 307, 367) Line 300 – Basic personal amount Line 301 – Age amount Line 303 – Spouse or common-law partner amount Line 304 – Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 and older Line 305 – Amount for an eligible dependant Line 307 – Canada caregiver amount for other infirm dependants age 18 or older Lines 352 and 367 – Canada caregiver amount for infirm children under 18 years of age Line 308 – CPP or QPP contributions through employment Line 398 – Home accessibility expenses Line 314 – Pension income amount Line 316 – Disability amount (for self) Line 318 – Disability amount transferred from a dependant Line 319 – Interest paid on your student loans Line 326 – Amounts transferred from your spouse or common-law partner Line 330 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2000 or later Line 349 – Donations and gifts Line 363 – Canada employment amount Step 6 – Refund or balance owing Minimum tax Line 453 – Working income tax benefit (WITB) Provincial and territorial tax Signing the return Chapter 3 – Optional returns Signing the optional return What are the three optional returns? 1. Return for rights or things Employment rights or things Other rights or things Election to delay payment of income tax How to cancel a return for rights or things 2. Return for a partner or proprietor 3. Return for income from a graduated rate estate Amounts for optional returns Amounts you can claim in full on each return Amounts you can split between returns Amounts you can claim only against certain income Chapter 4 – Deemed disposition of property General information What is a capital gain? What is a capital gains deduction? What is a capital loss? Recaptures and terminal losses Capital property other than depreciable property Deceased's deemed proceeds – Transfer to spouse or common-law partner, or testamentary spousal or common-law partner trust Deceased's deemed proceeds – All other transfers Depreciable property Deceased's deemed proceeds – Transfer to spouse or common-law partner, or testamentary spousal or common-law partner trust Deceased's deemed proceeds – All other transfers Farm or fishing property transferred to a child Conditions Deceased's deemed proceeds – Transfer of farmland to a child Deceased's deemed proceeds – Transfer of depreciable farm or fishing property to a child Election to delay payment of income tax Chapter 5 – Net capital losses What is a net capital loss? Net capital losses in the year of death Net capital losses before the year of death Disposition of estate property by the legal representative Appendix References Forms Guides Income tax folios Information circulars Interpretation bulletins (archived) Information sheets For more information What if you need help? Forms and publications Tax services offices Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service Complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Reconciliation of Business Income for Tax Purposes (Rev. 2017) — RC4015 Is this guide for you? Chapter 1 – General information Filing and balance due dates Chapter 2 – Calculating your 2017 business income Businesses that started before 2017 Businesses that started in 2017 Form T1139, Reconciliation of 2017 Business Income for Tax Purposes Part 1 – Fiscal periods that do not end on December 31 Part 1A – Identification Part 1B – Alternative method – fiscal periods that do not end on December 31 Amount A – Net income (loss) for your fiscal period ending in 2017 (if applicable) Amount B – Additional business income if your fiscal year-end is in 2017 Amount C – Additional business income if your business started in 2017 and the fiscal year-end is in 2018 Amount D – Additional business income Amount E – Subtotal (amount A plus amount D) Amount F – Last year's additional business income Amount G – Net income (loss) of the business Death of a partner or proprietor Final income tax return (including Form T1139) for the regular fiscal period Optional income tax return (plus Form T1139) for the short fiscal period Part 1C – Certification Part 2 – Changing to a December 31 fiscal period end Part 2A – Identification Part 2B – Changing to a fiscal period ending on December 31 Amount H – Net income (loss) for your first fiscal period ending in 2017 Amount I – Net income (loss) for the period ending December 31, 2017 Additional information for amount I if you are changing to a December 31 fiscal period end in 2017 Amount J – Subtotal (amount H plus amount I) Amount K – Last year's additional business income Amount L – Net income (loss) of your business Part 2C – Certification Online services My Account Handling business taxes online Sign up for online mail Authorizing the withdrawal of a pre determined amount from your bank account MyCRA mobile app Electronic payments For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Registered Education Savings Plans (Rev. 2017) RC4092 Is this guide for you? What's new? Definitions What is a Registered Education Savings Plan? Specified plan Government Grants Canada education savings grant Canada learning bond Quebec education savings incentive Saskatchewan Advantage Grant for Education Savings Program BC Training and Education Savings Grant Program (BCTESG) Who can be a subscriber? Who can become a beneficiary? RESP contributions RESP contribution limits Tax on RESP excess contributions Waiver of liability Payments from an RESP Refund of contributions to the subscriber or the beneficiary Educational assistance payments Limit on EAPs Accumulated income payments How AIPs are taxed Special rules Changing the beneficiary Transferring RESP property to another RESP Rolling over RESP property on a tax-deferred basis to an RDSP Anti-Avoidance Rules for RESP Tax payable on prohibited investments Tax payable on non-qualified investments Obligations of the RESP promoter Changes to the tax treatment of RESPs Reporting requirements by the RESP trust Tax payable on an advantage Refund of taxes paid on non-qualified or prohibited investments How to claim a refund Waiver of liability or cancellation Online services My Account How to register Sign up for online mail MyCRA mobile app Electronic payments For more information What if you need help? Electronic mailing lists Forms and publications Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Related forms and publications Forms Publications Information Circulars Rental Income (Rev. 2017) T4036 Is this guide for you? Definitions Chapter 1 – General information Do you have rental income or business income? Goods and services tax/harmonized sales tax (GST/HST) new residential rental property rebate GST/HST rebate for partners Keeping records Chapter 2 – Calculating your rental income or loss Filling out Form T776, Statement of Real Estate Rentals Part 1 – Identification Fiscal year: Are you a co-owner or a partner of a partnership? Tax shelter identification number Part 2 – Details of other co-owners and partners Part 3 – Income How to calculate your rental income Who reports the rental income or loss? Line 8230 – Other related income Line 8299 – Gross rental income Uncollectible rent Chapter 3 – Expenses Current or capital expenses Capital expenses – Special situations Modifications to rental properties to accommodate persons with disabilities Renovating an older building Construction soft costs Personal portion Expenses you can deduct Prepaid expenses Line 8521 – Advertising Line 8690 – Insurance Line 8710 – Interest and bank charges Line 8810 – Office expenses Line 8860 – Professional fees (includes legal and accounting fees) Line 8871 – Management and administration fees Line 8960 – Repairs and maintenance Line 9060 – Salaries, wages, and benefits Line 9180 – Property taxes Line 9200 – Travel Line 9220 – Utilities Line 9281 – Motor vehicle expenses Line 9270 – Other expenses Landscaping costs Lease cancellation payments Condominium fees Vacant land Expenses you cannot deduct Land transfer taxes Mortgage principal Penalties Value of your own labour Line 9949 – Total personal portion of expenses Deductible expenses Line 9369 – Net income (loss) before adjustments Co-owners – Your share of line 9369 Line 9945 – Other expenses of the co-owner Line 9947 – Recaptured CCA Line 9948 – Terminal loss Line 9936 – Capital cost allowance Net income (loss) Amount 18 – Partnerships Line 9974 – GST/HST rebate for partners received in the year Line 9943 – Other expenses of the partner Line 9946 – Your net income (loss) Rental losses Renting below fair market value Chapter 4 – Capital cost allowance What is capital cost allowance? How much CCA can you claim? Limits on CCA Classes of depreciable property Leasehold interest in real property that is a rental property Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Class 10 (30%) Class 10.1 (30%) Class 13 Class 31 (5%) and Class 32 (10%) Class 50 (55%) How to calculate your CCA claim Area A – Calculation of CCA claim Column 1 – Class number Column 2 – Undepreciated capital cost (UCC) at the start of the year Column 3 – Cost of additions in the year Column 4 – Proceeds of dispositions in the year Column 5 – UCC after additions and dispositions Column 6 – Adjustment for current-year additions Column 7 – Base amount for CCA Column 8 – CCA Rate (%) Column 9 – CCA for the year Column 10 – UCC at the end of the year Special situations Changing from personal to rental use Grants, subsidies, and other incentives or inducements Non-arm's length transactions Selling your rental property Disposing of a building Replacement property Chapter 5 – Principal residence What is your principal residence? Designating a principal residence Can you designate more than one principal residence? Disposition of your principal residence Change in use Special situations Changing your principal residence to a rental property Changing your rental property to a principal residence Changing part of your principal residence to a rental property Online services My Account Handling business taxes online Sign up for online mail Authorizing the withdrawal of a pre determined amount from your bank account MyCRA – Mobile app Electronic payments For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Retirement Compensation Arrangements Guide (Rev. 2017) T4041 Is this guide for you? Do you need to read the whole guide? Confidentiality of information Income Tax Act references Chapter 1 – General information What is an RCA? Definition Refundable tax Distributions Annuity contract Excluded arrangements Chapter 2 – Employer responsibilities Applying for RC and T accounts Completing Form T733, Application for a Retirement Compensation Arrangement (RCA) Account Number Employer's language of correspondence Custodian's language of correspondence Line 1 – Employer's legal name Line 2 – Employer's address Line 3 – Name and telephone number of employer's representative Line 4 – RCA trust's name Line 5 – Custodian's name and telephone number Line 6 – Custodian's address Line 7 – Name and telephone number of custodian's representative Line 8 – Date this RCA became effective Line 9 – Contributions already made to the custodian for this RCA trust Line 10 – Contributions to be made in the year the RCA becomes effective Line 11 – Address for books and records Line 12 – Distributions out of this RCA trust Certification Filing Form T733 Withholding and remitting the refundable tax Withholding the refundable tax Withholding refundable tax on transfers between RCA trusts Remitting the refundable tax Filing a T737-RCA information return to report contributions you made to the custodian of an RCA trust Completing the T737-RCA slip, Statement of Contributions Paid to a Custodian of a Retirement Compensation Arrangement (RCA) Year Box 18 – Gross contributions by employer under an RCA Box 20 – Net contributions made to the custodian Box 22 – Refundable tax deducted Custodian's name and address Employer's name Box 26 – Employer account number Completing the T737-RCA Summary, Information Return of Contributions Paid to a Custodian of a Retirement Compensation Arrangement (RCA) Language of correspondence Year Employer account number Employer's name and address Has the address changed since the last T737-RCA information return? Line 88 – Total number of T737-RCA slips filed Line 18 – Gross contributions by employer under an RCA Line 20 – Net contributions made to the custodian Line 22 – Refundable tax deducted Line 82 – Remittances Difference Line 84 – Overpayment Line 86 – Balance owing Line 76 – Contact person Line 78 – Telephone number Certification Distributing the slips and summary Electronic fillable slips Reporting deductible RCA contributions to the employee Change to the employer's legal name Chapter 3 – Custodian responsibilities Receiving employee contributions Amounts received that were withheld from income by the employer Amounts received directly from an RCA member (employee) Remitting the refundable tax on amounts received directly from an RCA member (employee) Filing a T3-RCA, Retirement Compensation Arrangement (RCA) Part XI.3 Tax Return Tax on RCA advantages and prohibited investments Waiver or cancellation of tax Completing the T3-RCA tax return RCA trust's tax year Is this the first T3-RCA tax return filed? Is this the final return of the RCA trust? Identification RCA trust's name Custodian trust account number Custodian's name Language of correspondence Contact person Area code and telephone number Custodian's address Mailing address (if different) Has the address changed since the last T3-RCA tax return? Has the custodian changed since the last T3-RCA tax return? Step 1 – Supporting documentation Step 2 – Details of contributions received during the year Step 3 – Calculating the refundable tax on hand for the current year Step 4 – Election under subsection 207.5(2) to recover refundable tax on hand Step 5 – Part XI.3 tax payable or refundable Step 6 – Tax on advantages and prohibited investments Step 7 – Refundable tax remitted Step 8 – Refund or balance owing Direct Deposit – Start or Change Step 9 – Certification Filing the T3-RCA tax return Applying for an RP or NR account number for income tax withheld on distributions Completing Form T735, Application for a Remittance Number for Tax Withheld from a Retirement Compensation Arrangement (RCA) Section A Section B – Custodian Section C – Person who bought an interest in an RCA Certification Filing Form T735 Withholding and remitting income tax on distributions Withholding income tax on distributions Remitting income tax withheld on distributions made out of the RCA trust using Form PD7A, Remittance Form Voucher – Statement of Account for Current Source Deductions Remitting income tax withheld on distributions before you receive an account number Filing a T4A-RCA information return to report distributions made out of an RCA trust Completing the T4A-RCA slip, Statement of Distributions from a Retirement Compensation Arrangement (RCA) Year Box 12 – Refund of employer contributions Box 14 – Refund of employee contributions Box 16 – Distributions Box 17 – Distributions eligible for pension income splitting Box 18 – Selling price of an interest in the RCA Box 20 – Other amounts Box 22 – Income tax deducted Box 24 – Social insurance number Recipient's name and address Name of custodian, or person who bought an interest in the RCA Box 61 – Payroll account number Completing the T4A-RCA Summary, Information Return of Distributions from a Retirement Compensation Arrangement (RCA) Year Payroll account number Corresponding custodian trust account number Name and address of custodian, or person who bought an interest in the RCA Name of the RCA trust Line 88 – Total number of T4A-RCA slips filed Line 12 – Refund of employer contributions Line 14 – Refund of employee contributions Line 16 – Distributions Line 17 – Distributions eligible for pension income splitting Line 18 – Selling price of an interest in the RCA Line 20 – Other amounts Line 22 – Income tax deducted Line 82 – Remittances Difference Line 84 – Overpayment Line 86 – Balance owing Line 76 – Contact person Line 78 – Telephone number Certification Distributing the slips and summary Electronic fillable slips Filing a final T4A-RCA information return Distributions to non-residents of Canada Withholding income tax on distributions made to non-residents of Canada Remitting income tax withheld on distributions made to non-residents of Canada Reporting distributions made to non-residents of Canada Transferring amounts between RCA trusts Chapter 4 – Penalties and interest Consequences for failing to comply with withholding, remitting, or filing requirements Penalties for failing to comply with filing requirements Employer, custodian, or person who bought an interest in an RCA Penalties and interest for failing to withhold tax Refundable tax on contributions Employer Income tax on distributions Custodian or person who bought an interest in an RCA Interest Employer, custodian, or person who bought an interest in an RCA Penalties and interest for remitting late or failing to remit withholding tax Employer, custodian, or person who bought an interest in an RCA Penalties and interest for remitting late or failing to remit the refundable tax Employer, custodian, or person who bought an interest in an RCA Penalty for filing a return late Custodian Failure to file a return of income Repeated failure to file a return of income Employer, custodian, or person who bought an interest in an RCA, or an employer who made contributions to a custodian of an RCA trust Failure to file an information return Cancelling or waiving penalties and interest Employer, custodian, or person who bought an interest in an RCA Failure to provide a social insurance number (SIN) or other information Employer, custodian, or person who bought an interest in an RCA Use of the SIN Employer, custodian, or person who bought an interest in an RCA Appendix 1 – Person who bought an interest in an RCA Appendix 2 – Additional topics Appendix 3 – Income Tax Act references For more information What if you need help? Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Direct deposit Service complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Due dates Cancel or waive penalties or interest RRSPs and Other Registered Plans for Retirement (Rev. 2016) T4040 Is this guide for you? Definitions Chapter 1 – RPP contributions Current service and past service contributions for 1990 or later years Past service contributions for 1989 or earlier years Interest on past service contributions Other deductions Calculating your 2016 deduction for your RPP contributions Chapter 2 – RRSP contributions How do you claim your RRSP deduction? Age limit for contributing to an RRSP Contributing to your RRSPs How much can you deduct? Calculating your 2016 RRSP deduction limit Contributions you can deduct for 2016 Contributing to your spouse's or common-law partner's RRSP, SPP, or both Keeping track of your RRSP, PRPP, and SPP contributions – Schedule 7 Line 1 – Unused RRSP or PRPP contributions Lines 2 and 3 – Total RRSP and PRPP contributions Lines 6 and 7 – Repayments under the HBP and the LLP Line 14 – RRSP or PRPP contributions you are deducting for 2016 Line 15 – Transfers Lines 19 to 22 – 2016 withdrawals under the HBP and the LLP Line 23 – Contributions to an amateur athlete trust Unused RRSP, PRPP, or SPP contributions Withdrawing the unused contributions Tax on RRSP, PRPP, or SPP excess contributions Which return do you have to use? Chapter 3 – RRIF contributions Property from an RRSP, PRPP, or SPP RPP amounts DPSP amounts Property from another RRIF Specified pension plan (SPP) amounts Chapter 4 – Anti-avoidance rules for RRSPs and RRIFs Tax payable on non-qualified investments Reporting requirements by the RRSP or RRIF trust Tax payable on prohibited investments Tax payable on an advantage Refund of taxes paid on non-qualified or prohibited investments How to claim a refund How to request a waiver or a cancellation of taxes Chapter 5 – Amounts from an RRSP or a RRIF Yearly minimum amount from a RRIF Transfers to registered disability savings plans Locked-in RRSP Amounts paid from or into a spousal or common-law partner RRSP, RRIF or SPP Calculating the income you and your spouse or common-law partner have to report Chapter 6 – Transfers to registered plans or funds and annuities Other transfers Direct transfer of an RPP lump-sum amount Excess transfer of an RPP lump-sum amount Chapter 7 – PAs, PARs, and PSPAs Pension adjustments (PAs) Does your employer have to report a PA for you? What does your PA affect? Pension adjustment reversals (PARs) Past service pension adjustments (PSPAs) Types of PSPAs Cost of past service benefits What happens if we cannot certify your PSPA? Net PSPA Chapter 8 – Pooled registered pension plan Eligibility Participation Contributions to a PRPP Member contributions Employer contributions Contributions on tax-exempt income PRPP transfers Transfers to a PRPP Transfers from a PRPP PRPP payments PRPP withdrawals PRPP life events Death of a PRPP member Breakdown of marriage or common-law partnership Related forms and publications Guides Information sheets Forms Interpretation bulletins and income tax folios Information circulars Online services My Account MyCRA – Mobile app Electronic payments For more information What if you need help? Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos Due dates Cancel or waive penalties or interest Scientific Research and Experimental Development (SR&ED) Expenditures Claim (Rev. 2015) T4088 What's new? Changes to Form T661 Changes to the Guide to Form T661 Legislative changes Before you start Internet access Advisory services and tools The SR&ED Program provides the following two incentives: Filing requirements To expedite the processing of your SR&ED claim SR&ED co-ordinating tax services offices Classified Projects Provincial and territorial tax incentives How to complete Form T661 – Line-by-line explanations Part 1 – General information Line 010 – Name of claimant Tax year Business identification Line 050 – Number of projects Lines 100 to 125 – Contact information Lines 151 to 157 – Partnership information Part 2 – Project information Purpose SR&ED Project Advantages of providing clear and concise information Section A – Project identification Line 200 – Project title Line 202 – Project start date Line 204 – Completion date Line 206 – Field of science or technology code Lines 208 and 210 – Continuation of a previously claimed project or a first claim for the project Lines 218 to 221 – Work done jointly or in collaboration with other businesses Lines 220 and 221 Section B – Project descriptions Line 242 – What scientific or technological uncertainties did you attempt to overcome? Line 244 – What work did you perform in the tax year to overcome the scientific or technological uncertainties described in line 242? Line 246 – What scientific or technological advancements did you achieve or attempt to achieve as a result of the work described in line 244? Section C – Additional project information Lines 253 to 259 – Who prepared the technical descriptions? Lines 260 and 261 – Key individuals Line 265 – SR&ED performed outside Canada Line 266 – SR&ED carried out on behalf of another party Lines 267 to 269 – SR&ED performed by others Lines 267 to 269 – SR&ED performed by others Line 268 – Names Line 269 – Business number Lines 270 to 282 – Evidence to support your claim Part 3 – Calculation of SR&ED expenditures Section A – Select the method to calculate the SR&ED expenditures Lines 160 and 162 – Select the method Section B – Calculation of allowable SR&ED expenditures Lines 300 to 309 – Salary or wages of employees directly engaged in SR&ED Line 300 – Employees other than specified employees for work performed in Canada Line 305 – Specified employees for work performed in Canada Line 307 – Employees other than specified employees for work performed outside Canada Line 309 – Specified employees for work performed outside Canada Lines 310 and 315 – Unpaid salary or wages Line 310 – Salary or wages from prior tax years paid in this tax year Line 315 – Unpaid salary or wages Line 320 – Cost of materials consumed Line 325 – Cost of materials transformed Lines 340 and 345 – SR&ED contracts Is it an SR&ED contract or a third party payment? Line 340 – Arm's length contracts Line 345 – Non arm's length contracts Line 350 – Lease costs of equipment used all or substantially all for SR&ED Line 355 – Lease costs of equipment used primarily for SR&ED Line 360 – Overhead and other expenditures Expenditures that are directly attributable to the prosecution of SR&ED Directly related and incremental expenditures Other salary or wages for the prosecution of SR&ED Expenditures that are for the provision of premises, facilities or equipment for the prosecution of SR&ED Line 370 – Third-party payments Third-party payments by farm producers Line 380 – Total current SR&ED expenditures Line 390 – Capital Expenditures Line 400 – Total allowable SR&ED expenditures Section C – Calculation of pool of deductible SR&ED expenditures Lines 429 to 432 – Government and non-government assistance Line 429 – Provincial/territorial government assistance Line 431 – Other government assistance Line 432 – Non-government assistance Line 435 – SR&ED ITCs applied and/or refunded in the prior tax year Line 440 – Sale of SR&ED capital assets and other deductions Other deductions Line 445 – Repayments of government and non-government assistance Line 450 – Prior tax year's pool balance of deductible SR&ED expenditures Line 452 – SR&ED expenditure pool transfer from amalgamation or wind-up Line 453 – Amount of SR&ED ITC recaptured in the prior tax year Line 455 – Amount available for deduction Line 460 – Deduction claimed in the tax year Line 470 – Pool balance of deductible SR&ED expenditures Part 4 – Calculation of qualified SR&ED expenditures for investment tax credit (ITC) purposes Amounts included on lines 500 to 510 increase your qualified SR&ED expenditures for the ITC. Line 500 – Payment of prior tax years' unpaid amounts (other than salary or wages) Line 502 – Prescribed proxy amount (PPA) Line 504 – Expenditures on shared use equipment (SUE) Lines 508 and 510 – Qualified expenditures transferred to you Amounts included on lines 513 to 546 decrease your qualified SR&ED expenditures for ITC. Lines 513 to 518 – Government and non-government assistance and contract payments Lines 513 and 514 – Provincial/territorial government assistance Lines 515 and 516 – Other government assistance (other than provincial and territorial R&D tax credits) Lines 517 and 518 – Non-government assistance and contract payments Line 520 – Current expenditures not paid within 180 days of the tax year-end Line 528 – Amounts paid in respect of an SR&ED contract to a person or partnership that is not a taxable supplier Line 529 – 20% of expenditures included on lines 340 and 370 that were incurred after December 31, 2012 Lines 530 and 532 – Prescribed expenditures not allowed by regulations Lines 533 and 535 – Other deductions Lines 538 to 546 – Non arm's length transactions Lines 538 and 540 – Assistance allocated to you Line 541 – Expenditures for non-arm's length SR&ED contracts Lines 542 and 543 – Adjustments to purchases of goods and services from non-arm's length suppliers Lines 544 and 546 – Qualified expenditures you transferred Line 559 – Qualified SR&ED expenditures Line 560 – Repayments of assistance and contract payments made in the year Line 570 – Total qualified SR&ED expenditures Part 5 – Calculation of prescribed proxy amount (PPA) Section A – Salary base Line 810 – Salary or wages of employees other than specified employees Line 812 – Bonuses, remuneration based on profits, and taxable benefits Line 814 – Subtotal Boxes 850 to 860 – Salary or wages of specified employees Line 816 Line 818 – Salary base Section B – Prescribed proxy amount (PPA) Line 820 – Prescribed proxy amount Part 6 – Project costs Box 750 – Project title or identification code Box 752 – Salary or wages Box 754 – Cost of materials Box 756 – Contract expenditures Part 7 – Additional information Line 605 – Expenditures for SR&ED performed by you in Canada Lines 600 to 618 – Sources of funds for SR&ED Line 600 – Internal funding Lines 602 and 604 – Funding from parent companies, subsidiaries, and affiliated companies Line 606 – Federal grants Line 608 – Federal contracts Line 610 – Provincial funding Lines 612 and 614 – SR&ED contract work performed for other companies Lines 616 and 618 – Other funding Lines 620 and 622 – Purpose of the work Lines 632 to 638 – SR&ED Personnel Part 8 – Claim checklist Part 9 – Claim preparer information Line 935 – Was a claim preparer engaged in any aspect of the preparation of this SR&ED claim? Line 940 – Name of claim preparer (company or individual) Line 945 – Business number Line 950 – Billing arrangement code Line 955 – Billing rate Line 960 – Other billing arrangement(s) Line 965 – Total fee paid, payable or expected to pay Line 970 – Identification Line 975 – Signature and date Part 10 – Certification Lines 165 and 170 – Authorization and date Line 175 – Name of person/firm who completed this form Partnerships SR&ED expenditures – Form T661 SR&ED filing requirements for partnerships and partners Form T661 – Line-by-line explanations for partnerships Line 010 – Name of claimant and tax year Lines 151 to 157 – Partnership information Lines 153 to 157 Lines 160 and 162 – Choice of method Line 435 – SR&ED ITC applied and/or refunded in the prior tax year Line 450 – Prior year's pool balance of deductible SR&ED expenditures Line 460 – Deduction claimed in the tax year Line 470 – Pool balance of deductible SR&ED expenditures Lines 508, 510, 544, and 546 – Transfer of qualified SR&ED expenditures between non-arm's length parties Appendix 1 – Field of science or technology codes Appendix 2 – Documentation and other evidence to support your SR&ED claim Supporting the SR&ED work claimed Supporting the SR&ED expenditures claimed Other Considerations Tax services offices Self-employed Business, Professional, Commission, Farming, and Fishing Income 2017 (Rev. 2017) T4002 Students and Income Tax (Rev. 2017) P105 Is this guide for you? What's new? Education and Textbook Tax Credits Straddle sessions Tuition tax credit Qualifying student Scholarship exemption Student eligible for the disability tax credit Renaming of forms T2202A, TL11A, TL11B, TL11C and TL11D Public transit tax credit Definitions Designated educational institution Full-time student Part-time student Post-secondary school level Qualifying educational program Qualifying student Specified educational program Chapter 1 – Before you start Do you have to file a return? Which forms book should you use? What should you do if you move? How to get the tax guide and forms you need? Social insurance number (SIN) Representatives Chapter 2 – Filing your return EFILE NETFILE Auto-fill my return What date is your return due? What do you include with your return and what records do you keep? Supporting documents What if you are missing information? When can you expect your refund? Types of income you may have Scholarships, fellowships, bursaries, and study grants (awards) Scholarship exemption Full-time enrolment Part-time enrolment Artists' project grants If you are not a qualifying student Scholarship exemption calculation Apprenticeship grants Apprenticeship incentive grant Apprenticeship completion grant Research grants Registered education savings plan (RESP) Chapter 3 – Common deductions from income Moving expenses Attendance at a post-secondary educational institution Employment Child care expenses Chapter 4 – Non-refundable tax credits Canada employment amount Public transit amount Types of transit passes Interest paid on your student loan Receipts Tuition, education, and textbook amounts Eligible tuition fees Examination fees for licensing or certification Amounts that are not eligible tuition fees Education amount Textbook amount Supporting documents Chapter 5 – Transfer or carry forward amount Transfer the current year's amount Carry forward the amount Summary of non-refundable tax credit changes to tuition fee, education and textbook amounts Chapter 6 – Child and family benefits Chapter 7 – Other provincial or territorial tax credits References Online Guides Forms Interpretation bulletin Income tax folios Online services My Account How to register Sign up for online mail MyCRA mobile app MyBenefits CRA mobile app For more information What if you need help? Community Volunteer Income Tax Program (CVITP) Direct deposit Forms and publications Contacting us with international enquiries Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Tax information videos Service complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Due dates Cancel or waive penalties or interest Learning About Taxes Support Payments (Rev. 2017) P102 Is this guide for you? Definitions What are support payments? Support payment conditions Exceptions Payments made before the date of the court order or written agreement Specific-purpose and third-party payments Lump-sum payments Are your payments considered support payments? What are the tax rules? Tax rules for court orders or written agreements made before May 1997 1. Changes to the amount of child support payments 2. A new court order or written agreement with the same person 3. The court order or written agreement specifies that payments will not be taxable or deductible 4. Election for child support payments Tax rules for court orders or written agreements made after April 1997 Child support payments Spousal support payments Priority of child support Child custody and the amount for an eligible dependant Sole custody Shared custody Filling out your tax return Payer Year of change in marital status Retroactive lump-sum payments Reimbursement of support payments Legal and accounting fees Supporting documents Recipient Retroactive lump-sum payment Repayment of support payments Legal and accounting fees Have you transferred the rights to your support payments? Supporting documents Registering your court order or written agreement Deductions from your pay Payer Recipient Payments made after death Payments to or from a non-resident Payer Recipient Online services My Account How to register Sign up for online mail MyCRA mobile app For more information What if you need help? Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Reprisal complaint Tax information videos T3 Trust Guide 2017 (Rev. 2017) T4013 Is this guide for you? What's new for 2017 Ecological gifts program Principal residence for trusts Investment Fund Mergers – Rules for Merging Mutual Fund Corporations with Mutual Fund Trusts Segregated Funds – Mergers and Non-Capital Losses Change to the tax treatment of RDSPs and RESPs Investment tax credit Internet file transfer Before you start Do you need to read the whole guide? Did you know that? Non-resident trusts Which tax package should you use? Definitions Chapter 1 – General information Types of trusts Testamentary Trust Inter vivos trust Code number for the type of trust Who should file Trust account number Who can apply for a trust account number? How to apply for a trust account number? What information is needed? What to file Form T3-DD, Direct Deposit Request for T3 When to file Tax year-end and fiscal period Testamentary trust Inter vivos trust Filing dates Final return How to file the T3 return Filing by Internet file transfer Web access code Eligibility Restrictions Other restrictions Filing on paper Non-resident trusts and deemed resident trusts Penalties and interest Penalties Repeated failure to report income penalty False statements or omissions penalty Interest Cancel or waive penalties or interest After you file Processing times Reassessments Tax Administration Rules How to register a formal dispute Elections What records do you have to keep? Clearance certificate Chapter 2 – Completing the return Step 1 – Identification and other required information Reporting foreign income and property Other required information Step 2 – Calculating total income: Lines 01 to 20 Line 01 – Taxable capital gains Line 02 – Pension income Line 03 –Total of actual amount of dividends from taxable Canadian corporations Line 04 – Foreign investment income Line 05 – Other investment income Thin capitalization – Rules for trusts Canadian resident trusts Non-resident trusts Lines 06, 07, and 09 – Business, farming or fishing, and rental income Line 10 – AgriInvest Fund 2 Line 11 – Deemed dispositions income or losses Line 19 – Other income Death benefit – Other than CPP or QPP Registered retirement savings plan (RRSP) Step 3 – Calculating net income: Lines 21 to 50 Line 21 – Carrying charges and interest expenses Lines 22 to 24 – Trustee fees Line 25 – Allowable business investment losses (ABIL) Line 40 – Other deductions from total income Line 43 – Upkeep, maintenance, and taxes of a property used or occupied by a beneficiary Line 44 – Value of other benefits to a beneficiary Lines 471, 472, and 47 – Total income allocations and designations to beneficiaries Step 4 – Calculating taxable income: Lines 51 to 56 Loss trading – Rules for trusts Line 51 – Non-capital losses of other years Line 52 – Net capital losses of other years Form T3A, Request for Loss Carryback by a Trust Line 54 – Other deductions to arrive at taxable income Step 5 – Summary of tax and credits: Lines 81 to 100 Line 81 – Total federal tax payable Line 82 – Provincial or territorial tax payable Line 85 – Tax paid by instalments Tax instalments Lines C, D, and 86 – Total tax deducted Line 89 – Capital gains refund Line 90 – Part XII.2 tax credit Line 91 – Other credits Line 94 – Refund or balance owing Line 95 – Amount enclosed Line 100 – Refund code Name and address of person or company who prepared this return Certification Chapter 3 – Trust schedules and forms Schedule 1 – Dispositions of Capital Property Certain gifts – zero inclusion rate Distribution of property to beneficiaries Graduated rate estate elections (losses) Due date of election and amended final T1 return 164(6) election 164(6.1) election Capital dispositions – Rules for trusts Canadian cultural property Proceeds of disposition Adjusted cost base (ACB) Property acquired before 1972 Outlays and expenses Lines 1 and 2 – Qualified small business corporation shares and qualified farm or fishing property Line 3 – Mutual fund units and other shares Line 4 – Bonds, debentures, promissory notes, and other similar properties Line 5 – Real estate and depreciable property Line 6 – Personal-use property Principal residence Lines 7 to 9 – Listed personal property Line 10 – Information slips Line 12 – Capital losses from a reduction in business investment loss Line 15 – Capital gains (losses) from reserves Line 17 – Capital gains on gifts of certain capital property eligible for the 0% inclusion rate Line 19 – Total capital losses transferred under subsection 164(6) Line 22 – Non-qualified investments for TFSA, RRSP, RRIF, RDSP, and RESP trusts Changes to the tax treatment of RESPs Line 23 – Total taxable capital gains (or net capital losses) Form T1055, Summary of Deemed Dispositions (2002 and later tax years) Deemed disposition Deemed disposition day Exemption from Form T1055 deemed dispositions Form T2223, Election Under Subsection 159(6.1) of the Income Tax Act, by a Trust to Defer Payment of Income Tax Schedule 8 – Investment Income, Carrying Charges, and Gross-up Amount of Dividends Retained by the Trust Lines 1 to 3 – Dividends from taxable Canadian corporations Lines 4 to 6 – Foreign investment income Lines 7 to 12 – Other investment income Non-taxable dividends received by a trust Lines 13 to 17 – Carrying charges and interest expenses Lines 18 to 32 – Calculating the gross-up amount of dividends retained or not designated by the trust Line 19 – Eligible dividends designated to beneficiaries Line 21 – Eligible dividends allocated, but not designated, to non-resident beneficiaries Line 24 – Gross-up amount of eligible dividends retained or not designated by the trust Line 26 – Dividends other than eligible dividends designated to beneficiaries Line 28 – Dividends other than eligible dividends allocated, but not designated, to non-resident beneficiaries Line 31 – Gross-up amount of dividends other than eligible retained or not designated by the trust Line 32 – Total gross-up amount of dividends other than eligible retained or not designated by the trust Schedule 9 – Income Allocations and Designations to Beneficiaries Allocations and designations Split income of a minor beneficiary How to report split income Transfers and loans of property Exceptions and limits to income allocations Income to be taxed in the trust Proportionate share formulas Preferred beneficiary election Preferred beneficiary election and the qualified disability trust election How to complete Schedule 9 Column 1 – Resident Column 2 – Non-resident Column 3 – By preferred beneficiary election Part A – Total income allocations and designations to beneficiaries Lines 921 to 928 and 949 Line 921 – Taxable capital gains Line 922 – Lump-sum pension income Line 923 – Actual amount of dividends other than eligible dividends Line 924 – Foreign business income Line 925 – Foreign non-business income Line 926 – Other income Line 949 – Actual amount of eligible dividends Line 928 – Totals Part B – Summary of other amounts designated to beneficiaries Lines 930 to 951 Line 930 – Taxable capital gains eligible for deduction Line 931 – Qualifying pension income Line 932 – Taxable amount of dividends other than eligible dividends Line 933 – Foreign business income tax paid Line 934 – Foreign non-business income tax paid Line 935 – Eligible death benefits Line 937 – Insurance segregated fund net capital losses Line 938 – Part XII.2 tax credit Line 939 – Dividend tax credit for dividends other than eligible dividends Lines 940 and 941 – Investment tax credit (ITC) Line 942 – Amount resulting in cost base adjustment Line 945 – Other credits Research and development tax credit Line 946 – Pension income qualifying for an eligible annuity for a minor Line 947 – Retiring allowance qualifying for transfer to an RPP or an RRSP Line 948 – Eligible amount of charitable donations Line 950 – Taxable amount of eligible dividends Line 951 – Dividend tax credit for eligible dividends Schedule 10 – Part XII.2 Tax and Part XIII Non-Resident Withholding Tax Part A – Calculating Part XII.2 tax and the refundable Part XII.2 tax credit Lines 1 to 14 Specified income Designated beneficiary Eligible beneficiary Line 6 – Total specified income Lines 7, 8, 10, and 11 – Adjusted amounts allocated and designated to beneficiaries Line 12 – Part XII.2 tax payable Line 13 – (Adjustment for Part XIII tax purposes) Line 14 – Part XII.2 refundable tax credit for eligible beneficiaries Part B – Calculating Part XIII non-resident withholding tax Lines 15 to 27 Line 18 – Taxable capital gains distributions designated as payable by a mutual fund trust Line 20 – Amounts not subject to Part XIII tax: Other Line 21 – (Part XII.2 tax amount) Line 23 – Taxable Canadian property gains distributions for non-resident beneficiaries Lines 25 to 27 – Non-resident tax payable Completing the NR4 return Schedule 11 – Federal Income Tax Lines 8 and 9 – Federal tax on taxable income Graduated Rate Estates (GRE) or Qualified Disability Trusts (QDT) Trusts other than GRE and QDT Line 11 – Federal recovery tax Recovery Tax Lines 13 to 15 – Federal dividend tax credit Line 16 – Donations and gifts tax credit Line 19 – Minimum tax carryover from previous years Line 21 – Surtax on income not subject to provincial or territorial tax Line 23 – Federal foreign tax credit Line 25 – Allowable federal political contribution tax credit Line 26 – Investment tax credit Line 32 – Additional tax on RESP accumulated income payments Line 34 – Refundable Quebec abatement Schedule 11A – Donations and gifts tax credit calculation Testamentary trust Estate donations – for deaths that occur after 2015 GRE donations Estate Donations – for deaths that occur before 2016 Inter vivos trust Lines 1 to 3 – Donations to registered charities and other qualified donees Line 4 – Donations applied to the last two years of the deceased individual (GREs and former GREs only) Line 5 – Total eligible amount of charitable donations (total of lines 1, 2, and 3 minus line 4) Line 6 – Donations limit Lines 7 and 8 – Gifts of capital property (including depreciable property) Line 11 – Eligible amount of cultural and ecological gifts Line 12 – Amount of cultural and ecological gifts applied to the last two years of the deceased individual (GREs and former GREs only) Lines 15 to 31 – Donations and gifts tax credit calculation Schedule 12 – Minimum Tax Alternative Minimum Tax Provincial and territorial income tax Resident trusts Non-resident trusts and deemed resident trusts Chapter 4 – T3 slip and summary How to file the T3 slip and summary Electronic filing methods Filing by Web Forms Filing by Internet file transfer Web access code Filing on paper Filing using computer-printed (customized) forms Distributing the T3 slip Amending, cancelling, adding, or replacing T3 slips Amending or cancelling slips over the Internet Amending or cancelling slips on paper Adding slips Recipient identification number How to complete the T3 slip Box 12 – Recipient identification number Box 14 – Account number Box 16 – Report code Box 18 – Beneficiary code Box 21 – Capital gains Box 23 – Actual amount of dividends other than eligible dividends Box 26 – Other income Box 30 – Capital gains eligible for deduction Box 32 – Taxable amount of dividends other than eligible dividends Box 39 – Dividend tax credit for dividends other than eligible dividends Box 49 – Actual amount of eligible dividends Box 50 – Taxable amount of eligible dividends Box 51 – Dividend tax credit for eligible dividends "Other information" area Box 22 – Lump-sum pension income Box 24 – Foreign business income Box 25 – Foreign non-business income Box 31 – Qualifying pension income Box 33 – Foreign business income tax paid Box 34 – Foreign non-business income tax paid Box 35 – Eligible death benefits Box 37 – Insurance segregated fund net capital losses Box 38 – Part XII.2 tax credit Boxes 40, 41 and 43 – Investment tax credit Box 40 – Investment cost or expenditures Box 41 – Investment tax credit Box 42 – Amount resulting in cost base adjustment Box 43 – Investment tax credit – Code number Box 45 – Other credits Research and development tax credit Box 46 – Pension income qualifying for an eligible annuity for a minor Box 47 – Retiring allowance qualifying for transfer to an RPP or RRSP Box 48 – Eligible amount of charitable donations Appendix A – T3 slip and summary Online services My Account How to register Sign up for online mail Submitting and filing electronic documents to the T3 Estate and Trust Return programs Documents you can submit online How to submit your document(s) online After you submit your documents Reference or case numbers Documents you can file online For more information Taxpayer Bill of Rights What if you need help? Direct deposit Forms and publications Getting information by telephone Teletypewriter (TTY) users Giving or cancelling an authorization Service complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Index T5007 Guide – Return of Benefits (Rev. 2017) T4115 Is this guide for you? Confidentiality of information Income Tax Act references What's new? Internet file transfer availability Chapter 1 – General information T5007 slip T5007 Summary Due date Chapter 2 – Who has to file a T5007 information return? Chapter 3 – Benefits and assistance you have to report Workers' compensation benefits Injury Disability Death Social assistance payments Chapter 4 – Benefits and assistance you do not have to report Workers' compensation benefits Social assistance payments Chapter 5 – Filing methods Mandatory electronic filing Failure to file information returns over the Internet Filing by Web Forms Filing by Internet file transfer Web access code Filing without a Web access code Filing on paper Filing using computer printed (customized) forms Chapter 6 – Penalties and interest Late filing and failure to file the T5007 information return Failure to provide information on a return Failure to provide a social insurance number (SIN) on a return Interest on penalties Cancel or waive penalties or interest Failure to provide a social insurance number Using the social insurance number Notice of assessment Chapter 7 – Completing the T5007 slip General information Year Box 10 – Workers' compensation benefits Interim assistance from a social services agency Box 11 – Social assistance payments or provincial or territorial supplements Box 12 – Social insurance number Box 13 – Report code Recipient's name and address Payer's name and address Distributing the T5007 slips Chapter 8 – Completing the T5007 Summary General information Information return for the year ending December 31 Account number Amendments If this is an additional T5007 Summary Name and address of payer Language T5007 slip totals Box 10 – Workers' compensation benefits Box 11 – Social assistance payments or provincial or territorial supplements Box 31 – Total number of T5007 slips attached Contact person Certification Name of authorized person Signature of authorized person and date Position or title Chapter 9 – After you file Amending, cancelling, adding, or replacing slips Amending or cancelling slips over the Internet Amending or cancelling slips on paper Adding slips Replacing slips Chapter 10 – Recovery of benefit and assistance overpayments Workers' compensation benefits Self-insured employee award Direct payment to claimant Social assistance payments Distributing your copies How to prepare, distribute and file your T5007 slips with your T5007 Summary References Interpretation Bulletins Information Circulars Addresses of tax centres Online services Handling business taxes online Sign up for online mail Authorizing the withdrawal of a pre-determined amount from your bank account For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Tax information videos Due dates Tax Advantages of Donating to Charity (Rev. 2005) RC4142 Need More Information? Tax Advantages of Donating to Charity Definitions What is a registered charity? What is a gift? What is a benefit of nominal value? What is a gift in kind? What is fair market value? General Benefits for Individual and Corporate Donors The Annual Limit for Charitable Donations Carrying Forward Charitable Gifts Special Types of Charitable Gifts Gifts of capital property Tax incentive for gifts of publicly traded securities Annual donation limit for gifts of capital property Gifts of buildings and equipment Gifts of Canadian cultural property Ecological gifts Gifts by businesses Gifts of business inventory Tickets to fund-raising dinners, balls, concerts, shows, or like events Tickets for lotteries, draws, or raffles Contributions of services Auctions Non-Qualifying Securities and Loanbacks Other Kinds of Gifts Gifts to Qualified Donees Tax Treatment of Mutual Funds for Individuals (Rev. 2017) — RC4169 What is a mutual fund? How is income from mutual funds taxed? How do you report income from information slips? How do you calculate and report capital gains when you sell or redeem units or shares? How do you calculate capital gains and capital losses? How do you calculate your ACB? How to calculate the proceeds of disposition How do you use a capital loss? Can you claim a capital gains deduction? Step 1 – Capital gains resulting from the redemption Step 2 – Completing Schedule 3 Step 3 – Completing Schedule 4 Reporting instructions for T3 slips and T5 slips For more information What if you need help? Forms and publications Using Your Home for Daycare (Rev. 2017) P134 Is this guide for you? Are you a self-employed individual? Reporting your income Fiscal period Accrual method Goods and services tax/harmonized sales tax (GST/HST) Claiming your expenses Line 8521 – Advertising Line 8760 – Business taxes, licences, and memberships Line 8810 – Office expenses Line 8811 – Office stationery and supplies Line 8860 – Professional fees (includes legal and accounting fees) Line 8871 – Management and administration fees Line 8960 – Repairs and maintenance Line 9060 – Salaries, wages, and benefits Line 9200 – Travel expenses Line 9281 – Motor vehicle expenses Line 9936 – Capital cost allowance Line 9945 – Business-use-of-home expenses Rooms for daycare use only Rooms used for both daycare and personal living Line 9270 – Other expenses Telephone Training Private health services plan premiums Keeping records Your employees Instalment payments Issuing your receipts Online services My Account How to register Sign up for online mail Handling business taxes online Sign up for online mail Authorizing the withdrawal of a predetermined amount from your bank account MyCRA – Mobile app Electronic payments For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Step 1 – Talk to us first Step 2 – Contact the CRA Service Complaints Program Step 3 – Contact the Office of the Taxpayers' Ombudsman Reprisal complaint Tax information videos Due dates Cancel or waive penalties or interest What To Do Following a Death (Rev. 2017) — RC4111 What should you do first? Was the deceased paying tax by instalments? What do you do with the GST/HST credit? What if the deceased was single, separated, divorced, or widowed and received the GST/HST credit? What if the deceased's GST/HST credit is for the deceased and his or her spouse or common-law partner? What if the surviving spouse's or common-law partner's GST/HST credit includes a claim for the deceased? What if the deceased is an eligible child? What do you do with the Canada child benefit (CCB) payments? What if the deceased was receiving CCB payments? What if the deceased's spouse or common-law partner receives the CCB? What if the deceased is an eligible child? Are you the legal representative? What is the due date for the final tax return and any balance owing? Previous year return How do you contact the CRA? Request for the Canada Revenue Agency to update records Appendix D – Information circulars and Interpretation bulletins IC 71-17R5 – Guidance On Competent Authority Assistance Under Canada's Tax Conventions (2005/01/01) Contents Introduction The Commitment of the Canadian Competent Authority Typical Requests for Assistance From the Canadian Competent Authority Making a Request Accelerated Competent Authority Procedure (ACAP) Acceptability of Requests Specific Situations Not Accepted for Canadian Competent Authority Consideration Tax Avoidance Responsibilities of the Taxpayer Taxpayer Cooperation Appeals and Court Decisions Collections Interest and Penalties Competent Authority Agreements Part XIII Tax and Repatriation of Transfer Pricing Adjustments Provincial Income Tax Considerations Advance Pricing Arrangements (APAs) Specific Issues Under the Canada–U.S. Tax Convention (1980) (the Convention) Notification Pursuant to Article IX – Related Persons and Article XXVI – Mutual Agreement Procedure Deferred Recognition of Profits, Gain or Income Pursuant to Paragraph 8 of Article Article XIII – Gains Eligibility Information to be Included in a Request for Deferral Treatment of United States S Corporation Income Pursuant to Paragraph 5 of Article XXIX – Miscellaneous Rules Deferral of Canadian Tax at Death Pursuant to Paragraph 5 of Article XXIX B – Taxes Imposed by Reason of Death Transmissions by Email and Facsimile Other References Further Contact Appendix – Standard Authorization for Email and Facsimile Transmission IC 72-17R6 – Procedures Concerning the Disposition of Taxable Canadian Property by Non-Residents of Canada – Section 116 (2010/11/15) Table of Contents General Information Vendor Notification Process Authorized Forms Technical Applications Real Estate Appraisals or Business Equity Valuations Treaty-Protected and Treaty-Exempt Property Tax Treaty Exemptions Inventory of Land Section 85 Elections Corporate Reorganizations Security or Payments on Account of Tax Certificate of Compliance Purchaser's Liability Filing a Tax Return – Refund of Excess Payment Misallocated or Lost Payments General Comments IC 73-21R9 – Claims for Meals and Lodging Expenses of Transport Employees (2006/10/11) Meaning of Terms Transport Employees Employees of Transport Businesses (claiming a deduction under paragraph 8(1)(g) of the Income Tax Act) Railway Employees (claiming a deduction under paragraph 8(1)(e) of the Income Tax Act) Other Transport Employees (claiming a deduction under paragraph 8(1)(h) of the Income Tax Act) Allowances and Reimbursements Amounts deductible for Meals Supporting Records Methods of Calculation Detailed Method Simplified Method Batching Rates Transport Employees Travelling to the United States of America Limitation of Number of Meals in a Day Departure Time Meals Supplied by Employers CRA's Verification Procedures General Detailed Method Simplified Method Employer Reimbursement Policies Verification Process Reassessment Record or Document Retention IC 75-2R9 – Contributions to a Registered Party, a Registered Association or to a Candidate at a Federal Election (2016/11) Part 1 – Information for authorized agents who may receive contributions Monetary contributions Receipts Books and records Part 2 – Information for contributors Who can contribute How to calculate a claim How to claim For more information IC 75-23 – Tuition Fees & Charitable Donations Paid to Privately Supported Secular & Religious Schools (1975/09/29) Religious Schools Secular Schools Appendix "A" – Section 110(9) IC 76-12R6 – Applicable Rate of Part XIII Tax on Amounts Paid or Credited to Persons in Countries With Which Canada Has a Tax Convention (2007/11/02) Contents Application General Information Introduction Rate of Tax to Be Withheld Negotiation and Renegotiation of Tax Conventions Beneficial Ownership Certification Pension Payments – Conversion to Canadian Dollars Reduced Treaty Rate Application Limitation of Relief Exception – Switzerland Amounts (Other Than Pensions and Annuities) Subject to Part XIII Tax Interest or Dividends Payable to a Non-Resident Agent or Nominee Payable to Foreign Governments Payable to Financial Intermediaries Management Fees Appendix A Appendix B Pensions and Annuities Subject to Part XIII Tax Pensions and Annuities – Definitions Appendix C Appendix D Footnotes to Appendices General Management Fees Estate and Trust Income Interest Income Dividends Rents, Royalties etc. Pensions and Annuities Tax Convention Dates And Developments Appendix E Appendix F Pending updates Eligibility for tax treaty benefits Procedures during the transition period Beneficial ownership Exceptions Reductions and exemptions provided in the Income Tax Act Letters of exemption or written authorization Agents or nominees residing in Switzerland Elective dividend service Interest or dividends payable to a non-resident agent or nominee / financial intermediaries Certifications by agents, nominees or registered holder IC 76-19R3 – Transfer of Property to a Corporation Under Section 85 (1996/06/17) Property transferred Consideration received Filing requirements Late and amended elections Amended election not required Penalty for late and amended elections Benefit conferred on a related person Deemed dividends and appropriations Price adjustment clauses Losses from disposition of property to a controlled corporation Pre-1972 appreciation Facsimile election forms IC 77-16R4 – Non-resident Income Tax (1992/05/11) Part I: Non-Resident Tax Liability Summary of Payments Subject to Tax Responsibility for Withholding Part XIII Tax Rates of Tax and Tax Treaties Management or Administration Fees or Charges Interest Blended Payments Guarantee Fees and Standby Charges Mortgage Investment Corporation Dividends Deemed Interest on Transfer or Assignment Estate and Trust Income Rents, Royalties and Other Payments Dividends Paid or Credited to Non-residents Other Part XIII Tax Exceptions and Alternatives Sovereign Immunity Canada-United States Income Tax Convention Payments to Non-Resident Insurers Miscellaneous Part II - Payment, Reporting and Refund of Non-Resident Part XIII Tax Withheld and Other Administrative Comments Payment and Reporting General Comments Trust Companies Income Received from Sources Within the United States on Behalf of Other Persons and the Withholding of Additional United States Tax Payees in Certain Countries Interest, Penalties and Fines (Reflects rates in effect since September 13, 1988) Refund of Tax Withheld Who May Claim a Refund When to Claim a Refund How to Claim a Refund How to Complete and File a Claim for Refund on Form NR7-R, Application for Refund of Non-Resident Tax, or by Filing an Income Tax Return Exceptions Other Administrative Comments Exemptions Certificate of Exemption - 212(14) Nominees Loss of Exemptions Exemption: Other Organizations Residents of Canada Temporarily Absent Request for Tax Reduction by Non-Residents of Canada Appendices Appendix 1 – List of Canadian Returns and Forms Appendix 2 – Reporting of Income Received From Sources Within the United States on Behalf of Other Persons and the Withholding of Additional United States Tax IC 78-4R3 – Investment Tax Credit Rates (1986/11/14) History of the Credit Schedule of Rates Quebec Ontario Manitoba and Saskatchewan Alberta British Columbia Northwest Territories and the Yukon Certified Property Acquisitions Schedule of Investment Tax Credit Rates Appendix A Qualified Property Acquired Qualified Expenditures Special Release: Investment Tax Credit Rates (1987/11/13) Qualified Property Qualified Transportation Equipment and Qualified Construction Equipment Certified Property Qualified Expenditures Approved Project Property Qualified Canadian Exploration Expenditures Schedule of Rates IC 78-10R5 – Books and Records Retention/Destruction (2010/06) Introduction Who has to keep books and records? Records to be kept Location of records Keeping records Electronic records management and imaging Retention period Inspections, audits and examinations Foreign-based information or documents Inadequate records Offences and penalties Inadequate records and failure to provide information APPENDIX IC 82-6R12 – Clearance Certificate (2016/11/30) Why you need a clearance certificate How to ask for a clearance certificate Issuing a clearance certificate Individuals Estates or trusts Corporations Excise Tax Act (Goods and services tax/harmonized sales tax) IC 84-3R6 Cancelled – Gifts to Certain Organizations Outside Canada (2010/07/09) Attachment To IC 84-3R, Gifts To Certain Charitable Organizations Outside Canada IC 86-4R3 Archived – Scientific Research & Experimental Development (1994/05/24) 1. Introduction 2. General Considerations in Identifying Eligible Activities 2.2 Statutory and general definitions 2.6 Major issues 2.9 General criteria 2.11 Application of criteria 3. Requirements for Scientific and Technical Content and Documentation 4. Characteristics of Experimental Development 5. Identifying Eligible Activities Associated With Collecting Data 6. Criteria for Identifying Eligible Activities in Computer Science and Associated Technologies 7. Considerations in Determining When an Experimental Development Project is Complete 8. Administrative Comments 8.1. Departmental specialists or advisors 8.2 Confidentiality 8.2.1 Commercial secrecy 8.3 Advance rulings 8.4 Form T661 Index – Scientific Research and Experimental Development A B C D E F H I K L M N O P Q R S T Glossary Associated established components Baseline data Business environment Commercial production Commonly available sources of knowledge or experience Cost targets and their relation to technological uncertainty Customary product design or customary product evolution Design Directly in support Hypothesis Intuitive processes Market demonstration/customer acceptance Market research Meaningful advance Operations research Pilot plant Planned approach Process optimization and cost reduction Prototype Routine engineering Social sciences Specialists Style change System uncertainty Systematic investigation or search Testing protocols Trouble-shooting Viable program IC 89-4 – Tax Shelter Reporting (1989/08/14) Promoter Tax Shelter Part I: Filing of Application for Tax Shelter Identification Number and Undertaking to Keep Books and Records - Form T5001. Penalties Part II: Filing of Tax Shelter Information Return, T5002, and Tax Shelter Information Supplementaries, T5003. Penalties Part III: Filing Requirements for Investors Part IV: Other IC 93-3R2 – Registered Education Savings Plans (2016/05/04) Authority Personal information Contents Part I – What is an RESP? Overview of an RESP Promoter, subscriber, and beneficiary Promoter Subscriber Beneficiary Types of education savings plans Individual plans Non-family plans Specified plans Family plans Blood relationship or adoption Adding a beneficiary Contributions Transfers Group plans Qualified investments Part II – Payments into an RESP Contributions Grants and incentives Canada education savings grant Canada learning bond Designated provincial programs Quebec education savings incentive Alberta centennial education savings plan grants Saskatchewan advantage grant for education savings program British Columbia training and education savings program Part III – Payments out of an RESP Educational assistance payments Extension for making educational assistance payments Enrolment Qualifying educational program Specified educational program Post-secondary educational institution $5,000 limit for qualifying educational programs $2,500 limit for specified educational programs Accumulated income payments Conditions for payment Waiver Rollover to an RRSP Education savings rollover to an RDSP Refund of contributions Payments to a designated educational institution Transfers Part IV – Registration Terms and conditions Statutory conditions CRA requirements Grandfathered plans ESP approval process Specimen plan concept Subscriber contract (application form) Prospectus Sending a list of new plans for registration Effective date of registration Part V – RESP Administration Amending the specimen plan Terminating the specimen plan Changing or adding a beneficiary Terminating an RESP Revoking the registration of an RESP Conditions for revoking registration Part VI – Contact and additional information Canada Revenue Agency Employment and Social Development Canada Forms and publications Glossary of terms IC 01-1 – Third-Party Civil Penalties (2001/12/18) Foreword Introduction The Law "Planner Penalty" "Planner Penalty" Amount "Preparer Penalty" "Preparer Penalty" Amount Application of the Legislation Interpretation and Discussion Person False Statement Statement Culpable Conduct Tantamount to Intentional Conduct Indifference Wilful, Reckless, or Wanton Disregard of the Law Participate Subordinate Clerical or Secretarial Services Good Faith Reliance Excluded Activity Gross Entitlements Two or More False Statements Special Rules for Valuation Activities Reverse Onus Rule Multiple Assessments Exemption for Employees Burden of Proof Other Issues Professional Standards and Terms of Engagement Guidance to Practitioners False Statements in Prior Years Persons Subject to Penalties Price Adjustment Clause Notices of Objection and Appeals to the Court The General Anti-Avoidance Rule Non-Residents Process Periodic Update Appendix – Examples Situations Where the Penalty Would Generally Not Apply Example 1: Good Faith Reliance on Client's Information Example 2: Reliance on Information Provided by Another Professional Example 3: Honest Error Example 4: Reconciling Inconsistent Information Example 5: Following CCRA Administrative Policy Example 6: Making Sufficient Inquiries Example 7: Discussion Regarding Voluntary Disclosure Situations Where the Penalty Could Apply Conduct That Is Tantamount to Intentional Conduct Example 8: Deliberate Over-Valuation in a Tax Shelter-Like Arrangement Example 9: Deliberate Over-Valuation in an Abusive Tax Shelter Example 10: Promotion Involving a False Statement Example 11: Promoting Non-Compliance With the ETA Conduct Which Describes an Indifference as to Whether There Is Compliance With the Legislation Example 12: Indifference When There Is a Lack of Information Submitted Example 13: Information a Tax Preparer Is Reasonably Expected to Know Example 14: Deliberately Overstated Tax Credits Conduct Demonstrating a Wilful, Reckless, or Wanton Disregard of the Law Example 15: Ignoring a Court Decision Example 16: Indifference Regarding Personal Expenses Claimed as Business Expenses Example 17: Income Splitting When Services Are Not Rendered Example 18: Possible Wilful Blindness IC 05-1R1 – Electronic Record Keeping (2010/06) Preamble Retention of records Location of records Record keeping Use of third party service providers Electronic records management and imaging Business system documentation Audit trail Transaction integrity and security Systems controls Changes to business systems Inspections, audits and examinations Business systems evaluations Lost, damaged or incomplete records Inadequate records Offences and penalties Inadequate records and failure to provide information Advice IT 51R2 – Supplies on Hand at the End of a Fiscal Period (1982/05/11) IT 63R5 – Benefits, Including Standby Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer – after 1992 (1995/08/21) Application Summary Discussion and Interpretation Automobile Benefit Overview Personal Use Automobile Operating Expense Benefit – Employer's Vehicle Automobile Standby Charge Benefit Reasonable Standby Charge Calculation of Benefits Example I Example II Example III Individuals Employed in Selling or Leasing Automobiles Employees and Members of Partnerships Shareholder Benefit Pooling or Similar Arrangements Example IV Example V Automobile Operating Expense Benefit – Employee's or Partner's Vehicle Other Benefits Reporting Requirements Explanation of Changes Introduction Overview Legislative and Other Changes IT 67R3 – Taxable Dividends from Corporations Resident in Canada (1992/05/15) Application Summary Discussion and Interpretation IT 79R3 – Capital Cost Allowance – Buildings or Other Structures (1991/05/24) Application Summary Discussion and Interpretation Meaning of "Building" and "Structure" Class 1 (4%) Class 3 (5%) Class 6 (10%) Component Parts Class 8 (20%) IT 81R – Partnerships – Income of Non-Resident Partners (1976/05/06) Gains from Disposition of Taxable Canadian Property Withholding Tax on Investment Income Alternative re Rents and Timber Royalties Partners Ceasing to be a Member of a Partnership Application of Part XIV ("Branch Tax") Reciprocal Tax Treaties IT 86R – Vow of Perpetual Poverty (1975/09/08) IT-90 – What is a Partnership? (1973/02/09) IT 91R4 – Employment at Special Work Sites or Remote Work Locations (1996/06/17) Application Summary Discussion and Interpretation Initial and terminal transportation Check-out allowance Special Work Sites Board and lodging Duties of a temporary nature Principal place of residence Transportation benefits or allowances Declaration of exemption Remote Work Locations Board and lodging Remoteness from an established community Transportation benefits or allowances Northern Residents Deductions Special work sites and northern residents deductions Remote work locations and northern residents deductions Appendix I Appendix II Special Work Sites Remote Work Locations Explanation of Changes Introduction Overview Legislative and Other Changes IT 95R – Foreign Exchange Gains and Losses (1980/12/16) Identification of Transactions Income Transactions – Method of Accounting Capital Transactions IT 96R6 – Options Granted by Corporations to Acquire Shares, Bonds or Debentures and by Trusts to Acquire Trust Units (1996/10/23) Application Summary Discussion and Interpretation Granting an option Option to Acquire the Granting Corporation's Own Capital Stock, Bonds, or Debentures Shareholder benefit Expiry of an option Grantor's position Holder's position When option exercised Grantor's position Holder's position Option Issued Concurrently with Another Security Security with a conversion feature Sale to a third party Option to Acquire the Granting Trust's Own Units Option to Acquire Securities of Another Entity Cost of the option When option exercised Grantor's position Holder's position Anti-avoidance provisions Extension or Renewal of Options Granted Explanation of Changes Introduction Overview Legislative and other changes IT 99R5 Consolidated – Legal and Accounting Fees Application Summary Discussion and Interpretation General Deductibility Financing Expenses Income Tax Returns Advance Income Tax Rulings Expense of Representation Capital Expenditures Eligible Capital Expenditures Corporate Take-overs Support Amounts Collection of Salary and Wages Retiring Allowances and Pension Benefits "Legal" Fees in Paragraphs 8(1)(b) and 60(o.1) Employees Selling Property or Negotiating Contracts Legal Expenses of Employees Paid by Employers Criminal Prosecutions Under Section 239 Bulletin Revisions IT 102R2 – Conversion of Property, Other than Real Property, from or to Inventory (1985/06/22) Capital Property Converted to Inventory Inventory Converted to Capital Property IT 103R – Dues Paid to a Union or to a Parity or Advisory Committee (1988/11/04) Application Summary Discussion and Interpretation Appendix I Appendix II IT 110R3 Cancelled – Gifts and Official Donation Receipts (1997/06/20) Application Summary Discussion and Interpretation Part I – Gifts Gifts of Cultural Property and Ecological Gifts General Rule Exceptions to the General Rule Benefits of Nominal Value Separation of Purchase and Gift Non-Qualifying Contributions Part II – Official Donation Receipts Contents Control of Receipts Facsimile Signatures Lost or Spoiled Receipts Date of Issue/Date of Donation Computer Generated Receipts Other Information Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 113R4 – Benefits to Employees – Stock Options (1996/08/07) Application Summary Taxable benefit under subsection 7(1) Individual ceases to be employee When section 7 does not apply Paragraphs 7(1)(c), (d) and (e) Agreement to sell or issue shares Employee stock options of a Canadian-controlled private corporation Exchange of options or shares Deduction under paragraph 110(1)(d) Deduction under paragraph 110(1)(d.1) General comments Non-residents Shares held by trustee Convertible preferred shares Explanation of Changes Introduction Overview Legislative and Other Changes IT 123R6 – Transactions Involving Eligible Capital Property (1997/06/01) Application Summary Discussion and Interpretation The New System Taxpayers in the First Category Taxpayers in the Second Category Non-Arm's Length Transfers Replacement Properties Transitional Provisions Government Rights Capital Dividend Account Bad Debts from Sale of EC Property Amount Not Due Until Later Year Terminal Allowance Eligible Capital Property of a Deceased Taxpayer Related Bulletins Schedule A Schedule B Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 124R6 – Contributions to Registered Retirement Savings Plans (1995/01/31) Application Summary Discussion and Interpretation General Comments Interest Expense and Administration Fees Contributions to the Taxpayer's RRSP Deduction of Premiums RRSP Deduction Limit Example A Carryforward of Unused RRSP Deduction Room Example B Example C Persons Connected With Their Employers Part-Year Residents and Non-Residents Contributions to a Spousal RRSP Payment of Premium in Kind Deduction for Refund of Undeducted Contributions made after 1990 Part X.1 Tax on Excess Contributions made after 1990 Recontribution to an RRSP Bankrupt Taxpayers Glossary Explanation of Changes Introduction Overview Legislative and Other Changes IT 125R4 – Dispositions of Resource Properties (1995/04/21) Application Summary Discussion and Interpretation Definitions Canadian resource property Foreign resource property Amount receivable General Partnerships Involuntary dispositions Farm-out transactions Examples of farm-out transactions Deceased taxpayers Explanation of Changes Introduction Overview Legislative and other changes IT 128R Cancelled – Capital Cost Allowance – Depreciable Property (1985/05/21) Ownership Capital Expenditures on Depreciable Property versus Current Expenditures on Repairs and Maintenance Depreciable Assets versus Inventory Assets Buildings Incidentally Acquired on Obtaining a Site IT 131R2 – Convention Expenses (1989/11/24) Application Summary Discussion and Interpretation Self-Employed Individuals Employees Travelling Expenses of Employee's Spouse Corporations IT 141R Consolidated – Clergy Residence Deduction Contents Application Summary Discussion and Interpretation Status Test Function Test Member of the Clergy or Regular Minister Religious Order Religious Denomination Ministering Congregation Specialized Ministries Full-time Administrative Service Appointment of a Religious Order or Religious Denomination Amount of Deduction Appendix A – Paragraph 8(1)(c) of the Act Section 8: Deductions allowed Appendix B – Decisions of the Tax Court of Canada Released in 1999 Austin v. The Queen, 99 DTC 710, [1999] 2 CTC 2270 McGorman et al. v. The Queen, 99 DTC 699 Kraft et al. v. The Queen, 99 DTC 693, [1999] 3 CTC 2185 Alemu et al. v. The Queen, 99 DTC 714, [1999] 2 CTC 2245 Fitch et al. v. The Queen, 99 DTC 721, [1999] 2 CTC 2419 Koop et al. v. The Queen, 99 DTC 707, [1999] 3 CTC 2084 Bulletin Revisions IT 143R3 – Meaning of Eligible Capital Expenditure (2002/08/29) Application Summary Discussion and Interpretation Introduction Specific Exclusions Goodwill Customer Lists and Ledger Accounts Trademarks, Patents, Franchises and Licences in Mortmain Expenses of Incorporation, Reorganization or Amalgamation Fines, Penalties and Legal Damages Political Contributions Expenses of Issuing Shares or Borrowing Money Brokerage Fees on Purchase of Shares, Debentures, etc. Appraisal Costs Legal and Accounting Fees Milk Quotas and Other Government Rights or Licences Stock Exchange Seats and Memberships Initiation or Admission Fees Easements Capital Expenditures in Respect of Another Person's Property Forfeited Deposits Non-Competition Payment Other Bulletins Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 152R3 – Special Reserves – Sale of Land (1985/06/18) Reserve Allowable Non-Arm's Length Transactions Reserve Where Sale of Land Involves a Mortgage IT 153R3 – Land Developers – Subdivision and Development Costs and Carrying Charges on Land (1991/10/07) Application Summary Discussion and Interpretation Interest and Property Taxes – Incurred after the 1987 taxation year Base Level Deduction Inventory Cost Adjustment Interest and Property Taxes – Incurred after November 16, 1978 and before the 1988 taxation year Land Interest on Debt Relating to the Acquisition of Land Adventure or Concern in the Nature of Trade Subdivision and Development Costs IT 154R – Special Reserves (1988/02/19) Application Summary Discussion and Interpretation Reserve in Respect of Goods and Services Reserve in Respect of Rent Received in Advance Transfer of an Obligation to Provide Goods or Services Reserve in Respect of Amount Due From the Sale of Property Other Than Real Estate Reserves Following an Amalgamation Reserves Following a Winding-Up Amount of Reserve to be Included in Income Repayment of Amount Previously Included in Income IT 158R2 – Employees' Professional Membership Dues (1989/07/14) Application Summary Discussion and Interpretation IT 159R3 – Capital Debts Established to be Bad Debts (1989/05/01) Application Summary Discussion and Interpretation IT 167R6 – Registered Pension Plans – Employee's Contributions (1995/09/14) Application Summary Discussion and Interpretation General comments Employee contributions for current service and post-1989 past service – paragraph 147.2(4)(a) Employee contributions for pre-1990 past service while not a contributor – paragraph 147.2(4)(b) Employee contributions for pre-1990 service while a contributor – paragraph 147.2(4)(c) "Past service" – year of death of an employee Teachers – subsection 147.2(5) Non-deductible contributions – subparagraph 56(1)(a)(i) Deduction by ex-employee – subsection 147.2(4) Interest on money borrowed to make current service contributions – subsection 18(11) and paragraph 147.2(4)(a) Interest on money borrowed to make past service contributions – subsection 18(11) and paragraphs 147.2(4)(a), (b), and (c) Deductibility of Accrued and Instalment Interest Glossary Appendix - Examples Example A – Past Service While Not a Contributor (Paragraph 147.2(4)(b)) Example B – Past Service While a Contributor (Paragraph 147.2(4)(c)) Explanation of Changes Introduction Overview Legislative and Other Changes IT 170R – Sale of Property – When Included in Income Computation (1980/08/25) Time of Entitlement Real Property Sales Sale of Shares Reacquisition of Property Sold IT 173R2 – Capital Gains Derived in Canada by Residents of the United States (1989/01/30) Application Summary Discussion and Interpretation Real Property Personal Property Permanent Establishment Fixed Base Transitional Rules Example 1 of pro-rata method (property acquired after 1971) Example 2 of pro-rata method (property acquired before 1972) Special Release – February 12, 1996 Application Bulletin Revisions IT 176R2 – Taxable Canadian Property – Interests in and Options on Real Property and Shares (1993/03/23) Application Summary Discussion and Interpretation Real Property Shares IT-178R3 (Consolidated) Cancelled – Moving Expenses Contents Application Summary Discussion and Interpretation Employees and Self-Employed Individuals Students Commencing Education Eligible Moving Expenses General Bulletin Revisions IT 184R – Deferred Cash Purchase Tickets Issued for Grain (1978/10/18) Voluntary Payment Deferrals IT 188R – Sale of Accounts Receivable (1984/05/22) Other Sales or Transfers of Accounts Receivable Cash Basis Taxpayers Reserves for Doubtful Accounts Special Release – September 26, 1994 Application IT 195R4 – Rental Property: Capital Cost Allowance Restrictions (1991/09/06) Application Summary Discussion and Interpretation General – Operation of the CCA Restriction Definition of Rental Property Meaning of "Principally" Taxpayers Not Subject to the CCA Restriction Meaning of "Rent" Exceptions Separate Classes for Rental and Non-Rental Properties Property Converted from Business to Rental Use During the Year Rental Property of Members of Partnerships Furniture, Fixtures and Appliances Allocation of Income and Expenses Between Leasing and Rental Properties Multiple-Unit Residential Buildings IT-200 – Surface Rentals and Farming Operations (1975/02/24) Capital Income Farming Operations Damage to Property IT 202R2 – Employees' or Workers' Compensation (1985/09/19) Inclusion in income Deduction in Computing Taxable Income Payments received by Employers Loans or Advances IT 206R – Separate Businesses (1979/10/29) Simultaneous Business Operations Successive Business Operations Bankruptcy IT 209R – Inter-Vivos Gifts of Capital Property to Individuals Directly or Through Trusts (1983/05/18) Special Release – February 12, 1996 Application Bulletin Revisions IT 210R2 – Income of Deceased Persons – Periodic Payments and Investment Tax Credit (1996/11/22) Application Summary Discussion and Interpretation Accrued interest Accrued salary or wages Genuine doubt about the nature of income Deduction of related accrued expenses Reporting requirements Investment tax credit Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 211R – Membership Dues – Associations and Societies (1982/11/15) IT 212R3 – Income of Deceased Persons – Rights or Things (1990/03/21) Application Summary Discussion and Interpretation Supplies on Hand and Inventory Work in Progress of Professionals Livestock Grain Debts Receivable Dividends Leave Credits Employee Compensation Plans Lump-sum Payment out of a Pension Plan Registered Retirement Savings Plans, etc. Land Inventory Income-Averaging Annuity Contracts 1971 Receivables Unpaid Bonus NISA Fund No. 2 Elections Payment of Tax in Instalments Recipients of Rights or Things Special Release (1995/07/26) IT 218R – Profit, Capital Gains and Losses from the Sale of Real Estate, Including Farmland and Inherited Land and Conversion of Real Estate from Capital Property to Inventory and Vice Versa (1986/09/16) Conversion of Real Estate from Capital Property to Inventory Conversion of Real Estate from Inventory to Capital Property Farmland and Inherited Land IT 220R2 Cancelled – Capital Cost Allowance – Proceeds of Disposition of Depreciable Property (1990/05/25) Application Summary Discussion and Interpretation Bad Debts Combined Consideration Deemed Proceeds of Disposition of a Building Appendix IT 226R – Gift to a Charity of a Residual Interest in Real Property or an Equitable Interest in a Trust (1991/11/29) Application Summary Discussion and Interpretation IT 232R3 – Losses – Their Deductibility in the Loss Year or in Other Years (1997/07/04) Application Summary Discussion and Interpretation Losses From an Office, Employment, Business or Property, and ABILs – Amount Used in the Loss Year Capital Losses Limited Partnership Losses Restricted Farm Losses Non-Capital Losses Farm Losses Net Capital Losses Adjustments to Carried-Over Loss Amounts Loss Application Rules for the Use of Non-Capital Losses, Net Capital Losses, Restricted Farm Losses, Farm Losses and Limited Partnership Losses in Other Years Other Adjustments to Carried-Over Loss Amounts Amended Return for Year of Loss Application When Loss Carried Back From Subsequent Year Separate Taxpayers Death of an Individual Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT-234 – Income of Deceased Persons – Farm Crops (1975/07/21) IT 238R2 – Fees Paid to Investment Counsel (1983/10/06) IT 244R3 – Gifts by Individuals of Life Insurance Policies as Charitable Donations (1991/09/06) Application Summary Discussion and Interpretation Receipt by Certain Qualified Donee IT 259R4 – Exchange of Property (2003/09/23) Contents Application Summary Discussion and Interpretation General Election to Use Subsections 44(1), 13(4) and 14(6) Replacement Property – General Replace the Former Property Same or a Similar Use Same or a Similar Business Amalgamations and Wind-Ups Partnerships Non-Residents and Deceased Taxpayers Adjustment Resulting from the Replacement of the Former Property – Examples Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 261R – Prepayments of Rents (1980/05/20) Rent Prepayments Made Prior to 1979 Post 1978 Prepaid Rent Landlords IT 262R2 – Losses of Non-Residents and Part-Year Residents (1996/11/28) Application Summary Discussion and Interpretation Part I: Rules for Full-Year Non-Residents of Canada Treatment of Losses in the Taxation Year in Which They are Incurred Application of Losses to Other Years Part II: Rules for an Individual Who is a Non-Resident of Canada for Only Part of the Taxation Year Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 264R – Part Dispositions (1980/12/29) IT 267R2 – Capital Cost Allowance – Vessels (1995/02/28) Application Summary Discussion and Interpretation General Accelerated capital cost allowance Canadian vessels Offshore drilling vessels Property acquired by transfer, amalgamation or winding-up Recaptured depreciation Explanation of Changes Introduction Overview Legislative and other changes IT 268R4 – Inter Vivos Transfer of Farm Property to Child (1996/04/15) Application Summary Discussion and Interpretation Farm Property Transferred Situations in which Subsection 73(3) Applies: Situations in which Subsection 73(3) Does Not Apply: Trusts for Minors Family Farm Corporations and Partnerships Transfers to Parent Used Principally in the Business of Farming by a Parent, or by his or her Spouse or Child Actively Engaged on a Regular and Continuous Basis Reserves Attribution ITAR Provisions – Land ITAR Provisions – Depreciable Property of a Prescribed Class ITAR Provisions – Eligible Capital Property ITAR Provisions – Family Farm Corporations Property Depreciable Pursuant to Part XVII Explanation of Changes Introduction Overview Legislative and Other Changes IT 273R2 – Government Assistance – General Comments (2000/09/13) Application Summary Discussion and Interpretation General Considerations Source of the Assistance Reduction of the Cost of Capital Property Depreciable property Non-depreciable capital property Assistance provided in respect of eligible capital expenditures Amounts Included in Income Under Paragraph 12(1)(x) Application of paragraph 12(1)(x) Exceptions to the paragraph 12(1)(x) requirement Prescribed amounts Election to reduce the cost of capital property Election to reduce the amount of an outlay or expense Forgivable loans and guarantees Tax credits and deductions from tax Refunds Partnerships and Trusts Assistance Provided in Respect of Resource Property Investment Tax Credit Goods and Services Tax Inducements to Medical Practitioners Assistance from a Foreign Government Natural Disasters Repayments of Assistance General Repayments of assistance in respect of eligible capital expenditures Repayments of assistance in respect of non-depreciable capital property Repayments of assistance in respect of depreciable property Repayments of assistance after amalgamation Explanation of Changes Introduction Overview Legislative and Other Changes IT 274R – Rental Properties – Capital Cost of $50,000 or More (1990/04/09) Application Summary Discussion and Interpretation IT 278R2 – Death of a Partner or of a Retired Partner (1994/09/26) Death of a Partner Income or Loss to Date of Death Income or Loss After Date of Death Deemed Disposition of Partnership Interest Work in Progress Example General Death of a Retired Partner Rights to Income from a Partnership Example I Example II Residual Interest in Partnership Partner or Retired Partner Deduction – 1971 Receivables IT 285R2 Cancelled – Capital Cost Allowance – General Comments (1994/03/31) Application Summary Discussion and Interpretation General Classes of Depreciable Property Capital Cost of Property Reduction of Capital Cost – Assistance or Inducements Ownership "50% Rule" – Property Acquired in the Year Short Fiscal Period Other Interpretation Bulletins Explanation of Changes Introduction Overview Legislative and Other Changes IT 287R2 – Sale of Inventory (1999/01/30) Application Summary Discussion and Interpretation Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 288R2 – Gifts of Capital Properties to a Charity and Others (1995/01/16) Application Summary Discussion and Interpretation Designation to reduce capital gain on certain gifts Designated amount Filing requirement Recapture of capital cost allowance Cannot create a loss Gifts by non-residents to a prescribed donee Donations by artists, authors and composers Example Amount of charitable gift Explanation of Changes Introduction Overview Legislative and Other Changes IT 291R3 – Transfer of Property to a Corporation Under Subsection 85(1) (2004/01/12) Contents Application Summary Discussion and Interpretation Definitions General Comments Transferor Transferee Eligible Property Limits for Agreed Amount Transfers of Depreciable and Eligible Capital Property Excess Liabilities Benefits Conferred on a Related Person Passenger Vehicles Shares of the Transferor Cost to Transferor of Consideration Received from the Corporation Loss From Disposition of Property Rollovers of Capital Property Taxable Canadian Property Contribution of Capital Reduction of Paid-up Capital Deemed Capital Cost Allowance Subsequent Dispositions of Eligible Capital Property Anti-Avoidance Rules Administrative Matters Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT-292 – Taxation of Elected Officers of Incorporated Municipalities, School Boards, Municipal Commissions and Similar Bodies (1976/02/23) Total Amounts Received Expense Allowance Limitation on Employment Expense Deduction Reporting – T4 Supplementary and T1 Individual Tax Returns IT 295R4 – Taxable Dividends Received after 1987 by a Spouse (1990/04/27) Application Summary Discussion and Interpretation IT-296 Cancelled – Landscaping of Grounds (1976/03/01) IT 297R2 – Gifts in Kind to Charity and Others (1990/03/21) Application Summary Discussion and Interpretation IT 304R2 – Condominiums (2000/06/02) Application Summary Discussion and Interpretation Legal Basis of the Condominium Condominium Corporation Condominium Unit Used to Earn Business or Rental Income General Capital Cost Allowance CCA Restriction and Separate Class Rule Repairs and Renovations Quebec Explanation of Changes Introduction Reason for the Revision Legislative and Other Changes IT 305R4 – Testamentary Spouse Trusts (1996/10/30) Application Summary Discussion and Interpretation General Establishment of Testamentary Spouse Trust Transfer or Distribution as a Consequence of Death and Trust Created by Will Requirements regarding the Income and Capital of a Spouse Trust "Tainted" Spouse Trust Transfer or Distribution of Net Income Stabilisation Account (NISA) to Spouse Trust Canada-United States Income Tax Convention (1980) Explanation of Changes Introduction Overview Legislative and other changes IT 307R4 – Spousal or Common-Law Partner Registered Retirement Savings Plans (2003/01/24) Application Summary Discussion and Interpretation Meaning of "Spousal or Common-Law Partner Plan" Meaning of "Spouse" and "Common-Law Partner" Maximum Deduction Amounts to be Included in Income Combining Spousal and Partner and Non-Spousal and Partner RRSPs Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 309R2 – Premiums on Life Insurance Used as Collateral (1995/02/28) Application Summary Discussion and Interpretation Line of credit Net cost of pure insurance Collateral in excess of loan balance Assignment of policy Duplicate insurance Example Explanation of Changes Introduction Overview Legislative and other changes IT 320R3 Cancelled – Qualified Investments – Trusts Governed by Registered Retirement Savings Plans, Registered Education Savings Plans and Registered Retirement Income Funds (2002/07/01) Application Summary Discussion and Interpretation General Registered Holder of Investments Qualified Investments Definitions Borrowing money Publicly traded shares and shares of public corporations Shares of private and other corporations Shares of small business corporations Shares of eligible corporations Shares of venture capital corporations Debt obligations Types Mortgages Instalment receipts Money and deposits of money Trust interests Annuity contracts Warrants, rights and options Registered investments Royalty units Partnership units Depository receipts Income Tax Consequences of Acquiring, Holding and Disposing of Property That is not a Qualified Investment Tax consequences for an annuitant under an RRSP or a RRIF Tax consequences for a recipient under an RESP Tax consequences for a plan trust Part I tax Part XI.1 tax Other Bulletins and Circulars Interpretation Bulletins Information Circulars Appendix Prescribed Stock Exchanges In and Outside Canada as of July 1, 2002 Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 322R – Farm Losses (1978/10/25) Source of Income Farming Business Definition of Farming IT 325R2 – Property Transfers After Separation, Divorce and Annulment (1994/01/07) Application Summary Discussion and Interpretation Subsection 73(1) Rollover Depreciable Property Non-depreciable Property Election Not to Have Subsection 73(1) Rollover Apply Meaning of Spouse or Former Spouse Transfers to a Former Common-Law Spouse Transfer to a Spousal Trust Trust Created to Make Alimony or Maintenance Payments Meaning of Transfer Transfer to Satisfy Obligation for Equalization Payment Attribution Rules Property Subject to an Interest of a Spouse Under a Matrimonial Regime in the Province of Quebec Transfers After Death Explanation of Changes Introduction Overview Legislative and Other Changes IT 326R3 – Returns of Deceased Persons as "Another Person" (1996/11/13) Application Summary Discussion and Interpretation Separate returns Credits and deductions allowed Deductions in computing taxable income Non-refundable tax credits Credits and deductions not allowed Deductions in computing net income Deductions in computing taxable income Tax credits Other considerations Explanation of Changes Returns of Deceased Persons as "Another Person" Introduction Overview Legislative and Other Changes IT 337R4 (Consolidated) Cancelled – Retiring Allowances (2006/02/01) Latest Revisions – Paragraph 8 and Paragraph 26 Contents Application Summary Discussion and Interpretation Introduction Meaning of Retirement and Loss of Office or Employment Retirement Loss of Office or Employment Timing Exceptions Types of Receipts Damages Dual Nature Receipts Non-Qualifying Receipts Tax Implications to Recipient Income Inclusion Transfers to a Registered Retirement Savings Plan or Registered Pension Plan Legal Costs Tax Implications to Payer Deductibility Withholding Requirements Bulletin Revisions IT 339R2 – Meaning of "Private Health Services Plan" (1989/08/08) Application Summary Discussion and Interpretation IT 341R4 – Expenses of Issuing or Selling Shares, Units in a Trust, Interests in a Partnership or Syndicate, and Expenses of Borrowing Money (2007/02/26) Application Summary Discussion and Interpretation General Five-year apportionment Exceptions to five-year apportionment Fees that relate only to a year Purpose of borrowing money Transactions actually incurred Timing of deduction Election to capitalize expenses Deductible expenses Non-deductible expenses Deduction under subsection 18(9.1) Explanation of Changes Introduction Overview Legislative and other changes IT 342R – Trusts – Income Payable to Beneficiaries (1990/03/21) Application Summary Discussion and Interpretation Meaning of "Amount Payable" Flow-Through of Deductions Designation of Trust Income Payable to Beneficiaries Adjustments to Adjusted Cost Base When Income is Earned Phantom Income Part XII.2 Tax IT 346R – Commodity Futures and Certain Commodities (1978/11/20) Income Transactions Speculators Non-Residents Interest Foreign Exchange Partnerships IT 349R3 – Intergenerational Transfer of Farm Property on Death (1996/11/07) Application Summary Discussion and Interpretation Direct Transfer to Child and Indirect Transfer Through a Spouse Trust (Subsections 70(9) and (9.1)) Family Farm Corporations and Partnerships (Subsections 70(9.2) and (9.3)) "Farming Business" and "Used in the Business of Farming" Actively Engaged on a Regular and Continuous Basis Occurrences as a Consequence of Death Depreciable Property Property Depreciable Pursuant to Part XVII ITAR Provisions - Land ITAR Provisions - Depreciable Property of a Prescribed Class Miscellaneous Comments Explanation of Changes Intergenerational Transfers of Farm Property on Death Introduction Overview Legislative and Other Changes IT 352R2 – Employee's Expenses, Including Work Space in Home Expenses (1994/08/26) Application Summary Discussion and Interpretation Work Space in Home Supplies Salaries Paid to an Assistant or Substitute Power Saw Expenses Certificate of Employer Explanation of Changes Introduction Overview Legislative and Other Changes IT 359R2 – Premiums and Other Amounts With Respect to Leases (1983/12/20) Amounts Received Landlord or Tenant Landlord Tenant Amounts Paid Landlord Tenant General IT-364 – Commencement of Business Operations (1977/03/14) Date When Business Commences Expenditures Prior to the Commencement of a Business Expenditures After the Commencement of a Business More Than One Business IT 373R2 Consolidated – Woodlots Contents Application Summary Discussion and Interpretation Introduction Meaning of "Woodlot" Taxation of Woodlots Steps to Follow to Determine Which Tax Rules Apply Step I: Is the Woodlot Considered a Commercial Woodlot or a Non-Commercial Woodlot? Commercial Woodlot Reasonable expectation of profit Other commercial woodlots General Adventure in the nature of trade Payments based on production or use – paragraph 12(1)(g) Non-Commercial Woodlot Capital Transaction Step II: Is Commercial Woodlot Operated as a Farm? Meaning of "Farming" General Christmas tree growers Commercial Farm Woodlot Income tax rules Capital gains deduction for commercial farm Real property requirement Use and profits tests General Income tax deferral on transfer of commercial farm property Commercial Non-Farm Woodlot – Income Tax Rules Step III: Is Farming the Chief Source of Income? General Farming Is Chief Income Source Farming Is Not Chief Income Source Bulletin Revisions IT 378R – Winding-up of a Partnership (1980/02/15) IT 379R – Employees Profit Sharing Plans – Allocations to Beneficiaries (1999/09/29) Application Summary Discussion and Interpretation General Determination of Trust Profits Allocation of Capital Gains and Capital Losses Allocation of Taxable Dividends Allocation of Foreign Non-Business Income and Related Foreign Tax Taxability of Amounts Allocated Distributions to Beneficiaries Distribution of Property Other Than Money Withholding Requirements Contingent Allocations and Forfeited Amounts Non-Resident Beneficiaries Appendix Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 387R2 Consolidated – Meaning of "Identical Properties" Application Summary Discussion and Interpretation General Gold Bullion and Gold Certificates Bonds, Debentures, Notes, etc. Escrowed Shares Convertible Shares Commodity Futures Contracts Indexed Securities Life Insurance Corporations Other Publications Bulletin Revisions IT 391R – Status of Corporations (1992/09/14) Application Summary Discussion and Interpretation Corporate Residence IT 393R2 – Elections re Tax on Rents and Timber Royalties: Non-Residents (1994/02/21) Application Summary Discussion and Interpretation Explanation of Changes Introduction Overview Legislative and Other Changes IT 396R – Interest Income (1984/05/29) Cash Method Receivable Method Accrual Method "Method Regularly Followed" Overriding Provisions in Special Circumstances Interest Distinguished from Other Receipts Corporations, Partnerships and Trusts Other Taxpayers Prescribed Debt Obligation Deduction for Over-Accrued Interest Canada Savings Bonds General IT 397R – Amounts Excluded from Income – Statutory Exemptions and Certain Service or RCMP Pensions, Allowances and Compensation (1990/02/23) Application Summary Discussion and Interpretation Statutory Exemptions Indian Act Foreign Missions and International Organizations Act Privileges and Immunities (North Atlantic Treaty Organization) Act Northwest Territories Act and Yukon Act Public Utilities Income Tax Transfer Act Family Allowances Act Visiting Forces Act Service and RCMP Pensions Canadian Service Pensions Service Pensions from Other Countries RCMP Pension or Compensation Pensions to Non-Residents Special Release – July 15, 1995 Application Bulletin Revisions IT 407R4 Consolidated – Dispositions of Cultural Property to Designated Canadian Institutions Application Summary Discussion and Interpretation General Capital Gains and Losses Tax Credits for Gifts – Individuals Deduction of Gifts – Corporations General Application Cost of Appraisal Tax in Respect of the Disposition of Certain Property by Designated Cultural Institutions Bulletin Revisions IT 411R – Meaning of "Construction" (1996/10/23) Application Summary Discussion and Interpretation Ready-Mix Concrete Truck Explanation of Changes Introduction Overview Legislative and other changes IT 413R – Election by Members of a Partnership Under Subsection 97(2) (89/07/07) Application Summary Discussion and interpretation IT 417R2 – Prepaid Expenses and Deferred Charges (1997/02/10) Application Summary Discussion and Interpretation Prepaid Expenses Deferred Charges General Legislative Framework Pre-Production or Start-up Costs of a New Business Prepaid Interest General Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 419R2 Cancelled – Meaning of Arm's Length (2004/06/08) Application Summary Discussion and Interpretation Related Persons Related Individuals Blood relationship Marriage Common-law partnership Other relatives Adoption Corporations and Other Persons Special Rules Options and Rights Effect of option Convertible securities Buy-sell agreements Simultaneous control and deemed control Unrelated Persons Personal Trusts Other Unrelated Persons Partnerships Trusts Shareholders and Corporations Explanation of Changes Introduction Overview Legislative and Other Changes IT 420R3 – Non-Residents – Income Earned in Canada (1992/05/30) Application Summary Discussion and Interpretation Income from an Office or Employment Income from a Business Taxable Canadian Property Other Canadian Source Income Persons Deemed to be Employed in Canada Competent Authority Agreements Subdivision (e) Deductions in Computing Income Losses from Canadian Sources Related Bulletins Special Release – February 2, 1995 Application Bulletin Revisions IT 421R2 – Benefits to Individuals, Corporations and Shareholders from Loans or Debt (1992/09/09) Application Summary Discussion and Interpretation Benefits to Employees 80.4(1) Calculation Loans From Third Parties Loans to Transferred Employees Benefits Arising by Virtue of Shareholdings Subsequent Changes in Relationships or Conditions Inclusion in Income of Benefits Calculated Under Section 80.4 Exceptions to Application of Subsections 80.4(1) and (2) Forgiven Loans Prescribed Rate of Interest Loans to Shareholder-Employees Persons from whom Accounts are Owing and to whom Accounts are Due Loans Repaid Before Borrower's Year-End Travel Advances and Merchandise Account Balances Limit on Taxable Benefit from Home Purchase Loans and Home Relocation Loans Meaning of "Home Purchase Loan" Meaning of "Home Relocation Loan" Deduction of Benefit With Respect to Home Relocation Loan Replacement of Home Relocation Loans Interest Rebates 80.4 Benefit Amount as Interest Expense Information Returns Non-Residents IT 426R – Shares Sold Subject to an Earnout Agreement (2004/09/28) Application Summary Discussion and Interpretation Introduction Conditions for the Application of the Cost Recovery Method Description of the Cost Recovery Method Other Comments Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 427R – Livestock of Farmers (1993/06/04) Application Summary Discussion and Interpretation Meaning of Livestock Cash Method - Inventory Adjustments Change in Residence Death of a Farmer Gift of Livestock and other Inventory Rollover of Livestock to a Corporation Amalgamation of Farm Corporations Winding-up of Farm Corporations IT-428 – Wage Loss Replacement Plans (1979/04/30) Exemption for Plans Established before June 19, 1971 Meaning of a "Wage Loss Replacement Plan" Lump-sum Payments Employee's Contribution Employer's Contributions Employee Pay-All Plans Claimant's Survivors Information Returns U.I.C. Employee Premium Rebate Computation of Benefit IT 433R – Farming or Fishing – Use of Cash Method (1993/06/04) Application Summary Discussion and Interpretation Meaning of Received Receipt of a Cheque Carrying on of Separate Businesses Meaning of a Farming Business Meaning of Fishing Business Inventory Change in Income Reported Rollover of Accounts Receivable Using the Cash Method in a Partnership IT 434R – Rental of Real Property by Individual (1982/04/30) Nature of Rental Operation Nature of Rental Income - Income Tax Consequences Attribution of Income from Property Transferred "Earned Income" (Paragraph 146(1)(c)) "Earned Income" (Paragraph 63(3)(b)) Allocation of Income from Rental Operations to a Particular Province Rentals Received by Non-Resident from Real Property Situated in Canada Computation of Net Rental Income Capital Cost Allowance Claims - Rental Property versus Business Property Capital Cost Allowance Claims - Taxation Year of Lessor Travel Expense Claims IT 437 Cancelled – Ownership of Dwelling Property (1979/09/10) IT 440R2 – Transfer of Rights to Income (1995/06/20) Application Summary Discussion and Interpretation Pension Benefits Subsection 56(4) Not Applicable Other Explanation of Changes Introduction Overview Legislative and Other Changes IT 442R – Bad Debts and Reserves for Doubtful Debts (1991/09/06) Application Summary Discussion and Interpretation Bad Debts Uncollectible Loans or Lending Assets Property Received in Settlement of a Debt, Loan or Lending Asset Bad Debts from Sale of Capital Property Bad Debts from Sale of Eligible Capital Property Recoveries of Bad Debts or Uncollectible Loans or Lending Assets Property Included in Inventory Reserve for Doubtful Debts Cessation or Sale of Business IT-443 – Leasing Property: Capital Cost Allowance Restrictions (1980/03/14) Leasing Property Separate Class Principal Business Property excluded from Leasing Property IT 451R – Deemed Disposition and Acquisition on Ceasing to Be or Becoming Resident in Canada (1987/03/25) Introduction Becoming or Ceasing to be Resident in Canada Deemed Disposition on Ceasing to be Resident Capital Gains Deduction Exceptions Resident in Canada for Short Term Only Election to Include Property Election to Exclude Property Acceptable Security Election to Pay Tax by Instalments Foreign Tax Deduction Corporate Emigration Demand Payment of Taxes Corporate Immigration Deemed Acquisition on Becoming Resident IT 456R – Capital Property – Some Adjustments to Cost Base (1990/07/09) Application Summary Discussion and Interpretation Share of a Corporation Substituted Property Capital Interest in a Trust Land Cost of Property Deductible in Computing Taxpayer's Income Inducement Amount IT-457R – Election by Professionals to Exclude Work in Progress from Income (1988/07/15) Application Summary Discussion and Interpretation Timing and Form of Election Election in Force when Business Ceases or Partner Withdraws or Dies Meaning of "Work in Progress" Work in Progress at Time of Death of Sole Proprietor or Partner Transfers of Work in Progress General IT 458R2 – Canadian Controlled Private Corporation (2000/05/31) Application Summary Discussion and Interpretation Appendix Explanation of Changes Introduction Overview Legislative and Other Changes IT-459 – Adventure or Concern in the Nature of Trade (1980/09/08) Taxpayer's Conduct Nature of the Property Taxpayer's Intention Isolated Transactions Losses Section 14 Not Applicable IT 464R – CCA – Leasehold Interests (1985/10/25) Acquisition of a Leasehold Interest Capital Cost of a Leasehold Interest Disposition of a Leasehold Interest CCA Computed Under Schedule III Buildings or Structures Appendix I Illustration of the Application of Schedule III IT 467R2 – Damages, Settlements and Similar Payments (2002/11/13) Contents Application Summary Discussion and Interpretation General The Robert McNeill Decision The 65302 British Columbia Ltd. Decision Requirements for Deductibility Payments on Account of Capital and Other Amounts Impact of Tax Treatment for Recipient Contingent or Anticipated Damages Damages Paid by Taxpayers Formerly on Cash Basis of Accounting Interest Element in Damage Awards, and Legal Fees Pertaining to Damages Wrongful Dismissal Awards Reasonableness of Amounts Payments (Other than Damages) to Cancel or Terminate Obligations Non-Competition Agreements Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 470R Cancelled – Employees' Fringe Benefits (1988/04/08) Application Summary Discussion and Interpretation Board and Lodging Rent-Free and Low-Rent Housing Travel Benefits Personal Use of Employer's Motor Vehicle Gifts (Including Christmas Gifts) Holiday Trips, Other Prizes and Incentive Awards Frequent Flyer Program Travelling Expenses of Employee's Spouse Premiums under Provincial Hospitalization and Medical Care Insurance Plans Tuition Fees Cost of Tools - Reimbursement Wage Loss Replacement Plans Interest-Free and Low-Interest Loans Financial Counselling and Income Tax Return Preparation Discounts on Merchandise and Commissions on Sales Subsidized Meals Uniforms and Special Clothing Subsidized School Services Transportation to the Job Recreational Facilities Removal Expenses Premiums under Private Health Services Plans Employer's Contribution under Provincial Hospitalization and Medical Care Insurance Plans Transportation Passes Public Office Holders Employee Counselling Services IT-472 – Capital Cost Allowance – Class 8 Property (1981/02/16) Property Included in Class 8 under Paragraph (i) IT-475 – Expenditures on Research and for Business Expansion (1981/03/31) IT-477 (Consolidated) Capital Cost Allowance – Patents, Franchises, Concessions and Licences Application Summary Discussion and Interpretation General Calculation of Maximum Allowance Election in Case of Patent Definitions Expectation of Class 14 Property "Life of the Property" and "Limited Period" Industrial Designs Capital Cost Bulletin Revisions IT 478R2 Cancelled – Capital Cost Allowance – Recapture and Terminal Loss (1999/09/17) Application Summary Discussion and Interpretation Calculation of Undepreciated Capital Cost Recapture of Capital Cost Allowance Terminal Loss Depreciable Property Not Disposed of After Ceasing to Carry on a Business Passenger Vehicles Costing More Than the Prescribed Amount Transfer of Depreciable Property From One Class to Another Rules Regarding Fiscal Period of an Individual's Business Statute-Barred Years Recapture and Terminal Loss of a Person Not Resident in Canada Deemed Disposition on Ceasing to Be Resident in Canada Miscellaneous Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 479R – Transactions in Securities (1984/02/2) Guaranteed Capital Gains Disposition of Securities – Income or Capital Transactions in More Than One Kind of Security IT-481 (Consolidated) – Timber Resource Property and Timber Limits Contents Application Summary Discussion and Interpretation Timber Resource Property Timber Limits and Cutting Rights General Bulletin Revisions IT 484R2 Cancelled – Business Investment Losses (1996/11/28) Application Summary Discussion and Interpretation Deceased Taxpayers Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT-485 – Cost of Clearing or Levelling Land (1982/04/19) Building Incidentally Acquired on Obtaining a Site Golf Courses Farmers Clearing and Levelling Land or Laying Tile Drainage IT-490 – Barter Transactions (1982/07/05) Income Tax Implications IT-491 – Former Business Property (1982/09/03) Rental Property Delays in the Disposition of Former Business Property Corporations Partnerships IT-492 – Capital Cost Allowance – Industrial Mineral Mines (1982/11/08) IT 497R4 – Overseas Employment Tax Credit (2004/05/14) Contents Application Summary Discussion and Interpretation General Qualifying Income Qualifying Activity Qualifying Period Specified Employer Option to Claim Foreign Tax Credit Under Subsection 126(1) Authorized Form and Reduced Withholding of Tax at Source OETC Calculation Adjusted Income for the Taxation Year Tax Otherwise Payable for the Year Example of an OETC Calculation Explanation of Changes Introduction Reasons for Revisions Legislative Changes and Others IT 499R – Superannuation or Pension Benefits (1992/01/17) Application Summary Discussion and Interpretation General Comments Annuity Contracts Under Pension Plans Foreign Pension Plans Pension Splits Pension Payable to Child of Deceased Employee Orphan's Benefits Other Interpretation Bulletins IT 500R – Registered retirement savings plans – Death of annuitant (1996/12/18) Application Summary Discussion and Interpretation Meaning of annuitant Meaning of maturity of an RRSP Meaning of spouse General rule for benefit at death Reduction of benefit at death – RRSP property receivable by spouse Reduction of benefit at death – Refund of premiums Reduction of benefit at death – Designated refund of premiums Payments out of an RRSP following the annuitant's death Joint and several liability for amounts received out of an RRSP Refund of premiums —General comments Refund of premiums out of an unmatured RRSP Refund of premiums out of a matured RRSP Rollover provisions Refund of premiums or commutation payment – Whether "qualified pension income" or "pension income" Payments and deemed payments to non-residents Explanation of Changes Introduction Overview Legislative and Other Changes IT-501 – Capital Cost Allowance – Logging Assets (1984/09/04) Immovable Woods Assets Classification – Schedule II Roads Logging Equipment Boats Boomchains Power Saws Leased Logging Equipment IT-502 – Employee Benefit Plans and Employee Trusts (1985/03/28) Employee Benefit Plans Definition Tax Result to Employee Tax Result to Employer Transition Period Tax Result to Custodian Employee Savings Plans Profit Sharing Plans (Other than Employees and Deferred Profit Sharing Plans) Employee Trusts Definition Tax Result to Employee Tax Result to Employer Tax Result to Employee Trust General Comments Applicable to Employee Benefit Plans and Employee Trusts IT 504R2 Consolidated – Visual Artists and Writers Contents Application Summary Discussion and Interpretation Income Sources Employee or Self-Employed Reasonable Expectation of Profit Artists' Inventories Work Space in Home Expenses Gifts and Charitable Donations in Kind Expenses of Employed Artists and Writers Bulletin Revisions IT-506 – Foreign Income Taxes as a Deduction From Income (1987/01/05) IT 508R – Death Benefits (1996/02/12) Application Summary Discussion and Interpretation Qualifying Payments Non-Qualifying Payments Public Servants of the Federal Government Superannuation or Pension Benefit Calculation of Death Benefit Qualifying Payment Received After 1992 Sole Beneficiary is Spouse Sole Beneficiary is not Spouse Meaning of "Spouse" More than One Spouse is a Beneficiary Beneficiaries are Spouse and a Person other than a Spouse Death Benefit Paid over More than One Taxation Year Death Benefit Received from More than One Office or Employment Calculation of reductions: Year 1 Surviving Spouse: Child: Year 2: Child: Explanation of Changes Introduction Overview Legislative and Other Changes IT-510 – Transfers and Loans of Property Made After May 22, 1985 to a Related Minor (1987/12/30) Application Summary Discussion and Interpretation Attribution of Income from Transferred or Loaned Property Application of Attribution Rules Exclusions Capital Gains and Losses Artificial Attribution Dividend Tax Credit Non-Resident Transferee Liability for Payment of Tax IT 511R – Interspousal and Certain Other Transfers and Loans of Property (1994/02/21) Application Summary Discussion and Interpretation Attribution of Income from Transferred or Loaned Property Attribution of Capital Gains and Losses Application of Attribution Rules Exclusions Substituted Property Artificial Attribution Partitioning after Dissolution of Matrimonial Regimes in the Province of Quebec Subsection 56(4.1) after 1990 Subsection 56(4.1) before 1991 Dividend Tax Credit Non-Resident Transferee Liability for Payment of Tax Explanation of Changes Introduction Overview Legislative and Other Changes IT 513R Cancelled – Personal Tax Credits (1998/02/24) Application Summary Discussion and Interpretation General Calculation of credits Basic personal tax credit Spousal tax credit Equivalent-to-spouse tax credit Dependant tax credit Age tax credit Non-resident spouse, child or grandchild of an individual resident in Canada Individuals making support payments Bankruptcy Other bulletins Appendix A - Terminology Appendix B - Summary of personal tax credits Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT-514 Cancelled – Work Space in Home Expenses (1989/02/03) Tax Reform Application Summary Discussion and Interpretation Principal Place of Business Regular and Continuous Basis Restriction on Deduction Carry Forward of Undeducted Expenses IT 518R – Food, Beverages and Entertainment Expenses (1996/04/16) Application Summary Discussion and Interpretation General Exceptions to the 50% Limitation Provision of Food, Beverages or Entertainment for Compensation Fund-Raising Events for Registered Charities Amounts for which the Taxpayer is Compensated Benefits Included in an Employee's Income or Provided to an Employee at a Remote Work Location Employer-Sponsored Events or Services Available to All Employees Amounts Included in Fares for Transportation Conferences, Conventions and Seminars Food and Beverages Entertainment Explanation of Changes Introduction Overview Legislative and Other Changes IT 521R – Motor Vehicle Expenses Claimed by Self-Employed Individuals (1996/12/16) Application Summary Discussion and Interpretation Motor Vehicle Expenses Eligible Leasing Cost Example – Computation of "Eligible" Leasing Cost Computation Capital Cost Allowance Interest Joint Owners or Lessees Section 85 Rollover General Remarks Appendix Explanation of Changes Introduction Reasons for the Revision Legislative and Other Changes IT 522R – Vehicle, Travel and Sales Expenses of Employees (1996/03/29) Application Summary Discussion and Interpretation Meaning of the Terms "Passenger Vehicle," "Automobile" and "Motor Vehicle" "Motor Vehicle" Expenses Example – Computation of "Eligible" Leasing Cost Aircraft Expenses Records to be Kept Capital Cost Allowance – "Motor Vehicle" and Aircraft Interest on Borrowed Money Used to Acquire a "Motor Vehicle" or Aircraft Joint Owners or Lessees Aircraft Expenses – Limitation Employees in General Salespersons Clergy Allowances for Travel Expenses – General Allowance for Travel Expenses – Salespersons and Clergy Allowance For Travel Expenses – Other Employees Reimbursements and Accountable Advances Employment at Special Work Site Part-time Employees Meals General Remarks Preparation of T4 Slips by Employer Appendix Assumptions: Analysis: Explanation of Changes Introduction Overview Legislative and Other Changes IT-526 – Farming – Cash Method Inventory Adjustments (1993/05/28) Application Summary Discussion and Interpretation Optional Inventory Adjustment Mandatory Inventory Adjustment Transitional Relief Fixed-Dollar Method Elective Method IT-528 – Transfers of Funds Between Registered Plans (1997/02/21) Application Summary Discussion and Interpretation Transfers from DPSPs Amounts from DPSPs Exceptions to direct transfer rule for DPSP payments Transfers from RRSPs Transfers from RRIFs Transfers from RPPs General Treatment of transferred amount Direct transfer from a money purchase provision of an RPP Direct transfer from a defined benefit provision of an RPP Other direct transfers from an RPP RPP amount is not transferred under any of subsections 147.3(1) to (7) Excess RPP transfers Deduction under subsection 147.3(13.1) Other Transfers Transfer from a non-registered pension plan Death of an individual Transfers of amounts under prescribed pension plans Glossary Appendix IT-529 – Flexible Employee Benefit Programs (1998/02/20) Application Summary Discussion and Interpretation General Description of a Flex Program Plan Year Tax Considerations in the Design of the Overall Flex Program Setting up a Flex Program Statutory Considerations Taxation of Individual Benefits Health Care Survivor Benefits Short-Term and Long-Term Disability Insurance Vacation Selling Vacation Buying Cash Payments, Transfers, Diversions Tax Implications to the Employer Benefits to Shareholders Benefits to Former Employees Related Bulletins and Guides IT-530 Cancelled – Support Payments (1999/01/11) Application Summary Discussion and Interpretation General Meaning of Terms Used in Determining the Deductibility of Support Payments Support amount Child support amount Commencement day Allowance Spouse Orders of a competent tribunal and written agreements Deduction of Support Payments Amount deductible Example 1 Example 2 More than one court order or written agreement Discretion as to the Use of the Amount Payments on a Periodic Basis Payments Made Prior to Date of Order or Agreement Payments to Third Parties Payments Assigned or Transferred to a Provincial Authority Reimbursement of Support Payments Personal Tax Credits Payments Made After Death of Recipient Legal Costs Related Forms IT-533 Cancelled – Interest Deductibility and Related Issues (2003/10/31) Contents Application Summary Discussion and Interpretation General What is interest? Participating payments as interest Deemed interest – section 16 Interest as an income or capital expenditure Paragraph 20(1)(c) pre and post-amble Paid in the year or payable in respect of the year … pursuant to a legal obligation Contingent interest Reasonable amount Subparagraph 20(1)(c)(i) Borrowed money Purpose Income No deduction to acquire property producing exempt income or a life insurance policy "Use" of borrowed money Direct or indirect use Restructuring borrowings Cash damming First use or current use Tracing/linking borrowed money to its current use Disappearing source rules Tracing/linking through cash accounts, lines of credit, etc. Tracing/linking applied to an amalgamation or winding-up Exceptions to the direct use test – general Exceptions to the direct use test – borrowed money used by a corporation to redeem shares, return capital or pay dividends Exceptions to the direct use test – borrowed money used by a partnership to return capital to a partner Exceptions to the direct use test – borrowed money used to make interest-free loans and contributions of capital Exceptions to the direct use test – borrowed money used to make interest-free loans to employees and shareholders Subparagraph 20(1)(c)(ii) Amount payable for property acquired Purpose of gaining or producing income Note issued to redeem shares Subparagraphs 20(1)(c)(iii) & (iv) Interest on an amount paid under an appropriation Act or on borrowed money to acquire an interest in an annuity contract Other Interest Deductibility and Related Issues Borrowing for investments including common shares Loss utilizations within an affiliated group Borrowed money used to honour guarantees Borrowing to make non-deductible expenditures Security provided for borrowed money or an amount payable Interest on amounts payable where no property acquired Discounts arising on the issuance of debt obligations Premiums arising on the issuance of debt obligations Interest on credit card transactions Interest on death duties Refinancing transactions Other provisions of the Act regarding interest deductibility Appendix A – References to court cases referred to in the bulletin Appendix B – Draft proposals: Deductibility of interest and other expenses S1-F1-C1: Medical Expense Tax Credit Summary Discussion and interpretation Calculating the medical expense tax credit Medical expenses for individual, spouse, common-law partner and children under 18 Medical expenses for dependants Conditions for claiming medical expenses Medical expenses outside Canada Medical expenses paid subsequent to the death of an individual Medical expenses paid or deemed to have been paid Entitlement to reimbursement of medical expenses Eligible medical expenses References to medical professionals Fees paid to medical professionals Cost of attendant care and care in certain types of facilities General Full-time attendant care or full-time care in a nursing home Limited claim for attendant care Care in a group home Care in a self-contained domestic establishment Full-time nursing home care due to lack of normal mental capacity Care in an institution and care and training in a school Transportation and travel expenses Artificial limbs, aids and other devices and equipment Products required because of incontinence Vision care Oxygen, insulin and injections for pernicious anaemia Guide and hearing-ear dogs and other animals Bone marrow or organ transplants Alterations to an existing dwelling or construction of a new dwelling Rehabilitative therapy Sign language services Note-taking services Voice recognition software Reading services Deaf-blind intervening services Moving expenses Driveway alterations Van for wheelchair Caretaker training Therapy for eligible person with a disability Tutoring services Individualized therapy plan Devices and equipment prescribed by regulation Drugs, medicaments and other preparations or substances Preventive, diagnostic and other treatments Dentures Premiums paid to a private health services plan (PHSP) Gluten-free food Drugs not yet approved for sale Medical devices not yet approved for sale Medical marihuana Cosmetic procedures Receipts Refundable medical expense supplement Application Reference Chapter History Introduction General Legislative and other changes S1-F1-C2: Disability Tax Credit Summary Discussion and Interpretation References to an eligible person with a disability Eligibility for the Credit Nature and effect of impairment Prolonged impairment Markedly Restricted Equivalent to markedly restricted Basic activity of daily living Mental functions necessary for everyday life Feeding oneself Dressing oneself Exclusions from basic activities of daily living Inordinate amount of time Life-sustaining therapy Specific medical conditions and eligibility for the disability tax credit Disability under pension plans, workers' compensation legislation or a private insurance arrangement Certification requirements Attendant or nursing home care expenses claimed as medical expenses Calculating the disability tax credit Base amount Supplemental amount Transfer of unused credit amount to another taxpayer Transfer to a supporting individual More than one supporting individual Spouse or common-law partner and a supporting individual Calculating the unused amount that can be transferred to a supporting individual Transfer to the spouse or common-law partner Filing requirements Additional information to support a claim Application Reference Chapter History Introduction General Legislative and other changes S1-F1-C3: Disability Supports Deduction Summary Discussion and Interpretation Taxpayers who can claim the disability supports deduction Eligible disability supports expenses Purpose of the expenditure Nature of the expenditure Receipts Amounts claimed as medical expenses Individuals absent from Canada Calculation of the disability supports deduction Maximum limit Determining income from office or employment Scholarships and research grants Taxpayers attending school Application Reference Chapter History Introduction General Legislative and other changes S1-F2-C1: Education and Textbook Tax Credits Summary Discussion and interpretation General overview Carrying forward or transferring credits Authorized certificate The formula Determining amount of the credit Months without formal instruction or classroom activity Persons with disabilities Qualifying student Designated educational institution Definition of designated educational institution Institutions certified by the Minister of ESDC Universities outside Canada List of designated educational institutions Qualifying educational program Definition of qualifying educational program Program time that qualifies Post-secondary school level Post-doctoral fellowship Allowance, benefit, grant, or reimbursement No tuition fees Specified educational program Enrolled as a full-time or part-time student Co-operative courses Two or more part-time enrollments Income from employment Authorized certificate Application Reference Chapter History Introduction General Legislative and other changes S1-F2-C2: Tuition Tax Credit Summary Discussion and interpretation General overview Determining amount of the credit Educational institutions in Canada General comments Determining eligibility of an institution Institutions certified by the Minister of ESD Tuition fees that will not qualify Courses at the post-secondary school level Obtain skills for an occupation Educational institutions outside Canada Tuition fees paid to an educational institution outside Canada Bachelor's degree or equivalent List of universities outside Canada Eligibility of United States educational institutions Meaning of "commute" Further information Full-time attendance and enrolment Online attendance and correspondence courses Researching, writing and laboratory time Meaning of "enrolled" Scholarships, fellowships, bursaries, or prizes Assistance under certain government programs Individuals eligible to claim the tuition tax credit Period covered by fees Length of course eligible Eligible tuition fees Amounts that are not eligible tuition fees Ancillary fees and charges Enrolment in flying training school or club Occupational, trade, or professional examinations Ancillary fees and charges for examinations Carry-forward of unused tuition, education and textbook tax credits Overview Deduction of carry-forward Calculating unused tuition, education and textbook tax credit The formula Change in lowest tax rate percentage Non-resident students Transfer of unused tuition, education and textbook tax credits Transfer to a spouse or common-law partner Transfer to a parent or grandparent Meaning of "parent" and "grandparent" Certificate to support claims Types of certificates issued for tuition fees Amended certificates Letter of certification Receipt for occupational, trade, or professional examinations Application Reference Chapter History Introduction General Legislative and other changes S1-F2-C3: Scholarships, Research Grants and Other Education Assistance Summary Discussion and Interpretation General overview Amounts not included under paragraph 56(1)(n) Scholarships and Bursaries What is a scholarship or bursary? Allowances or reimbursements Scholarships or bursaries provided in employment situations Scholarship or bursary awarded to a current or former employee Scholarship or bursary awarded prior to employment relationship Scholarship or bursary awarded to family members of employees Training allowances Employer-paid education and training Further information Fellowships Amounts determined to be employment income Amounts determined to be fellowship income Amounts determined to be research grants Awards granted for more than one purpose Student assistantships Post-doctoral fellowships Taxation of amounts received by post-doctoral fellows Student loans Distinguishing "forgivable loans" and "repayable awards" Forgivable loans Repayable awards Repay all or a portion of a repayable award Prizes Amounts received in respect of employment Amounts received in the course of business Prescribed prizes Research grants Meaning of "research" Research grants awarded to non-employees Research grants awarded to employees Amounts not received as a research grant Allowances and separate grants Reimbursements and accountable advances Research assistants Research expenses Travelling expenses Expenses incurred before or after year of grant Financial assistance Amounts included under paragraph 56(1)(r) Financial assistance while participating in employment-related activity Deduction for certain financial assistance Social assistance payments Amounts received from a trust Individuals from other countries who become a resident of Canada Non-residents of Canada Deductions under subsection 56(3) Full-time student Student in elementary or secondary school Part-time student Meaning of "received in connection with the taxpayer's enrolment" Awards for the production of a literary, dramatic, musical or artistic work Basic scholarship exemption Post-doctoral fellowships Amounts received from a Registered Education Savings Plan Value of tuition benefits Benefits from registered national arts service organizations Information returns Amounts reported on a T4A or T4E Slip Amounts reported on a T4 Slip Information for recipients Withholding of tax Application Reference Chapter History Introduction General Legislative and Other Changes S1-F3-C1: Child Care Expense Deduction Summary Discussion and interpretation What are child care expenses? Eligible child Expenses to enable the undertaking of specific activities Provider of child care services Excluded child care expenses Who may claim the child care expense deduction? General rule Income Payer of child care expenses Higher income taxpayer Separation and shared custody Students What is the maximum deduction? General rule Earned income Deductibility of child care expenses by the higher income taxpayer Child care expenses while at school Form T778 and receipts Impact of child care expense claims Disability tax credit supplement Children's fitness and art tax credits Application Reference Chapter History Introduction General Legislative and other changes S1-F3-C2: Principal Residence Summary Discussion and interpretation Introduction When the sale of a property results in business income Types of property that can qualify as a principal residence Ownership is required The ordinarily inhabited rule Designation of a property as a principal residence Calculating the gain on the disposition of a principal residence – the principal residence exemption Ownership of a property by both spouses or common-law partners More than one residence in a tax year Construction of a housing unit on vacant land Property owned on December 31, 1981 Loss on the disposition of a residence Land contributing to the use and enjoyment of the housing unit as a residence Land in excess of one-half hectare Disposition of part of a principal residence Disposition of a property where only part of it qualifies as a principal residence Principal residence on land used in a farming business Complete change in use of a property from principal residence to income-producing Complete change in use of a property from income-producing to principal residence Partial changes in use Change in use rules regarding CCA, deemed capital cost, and recapture Personal trusts Transfer of a principal residence Partnership property A principal residence outside Canada Non-resident owner of a principal residence in Canada Section 116 certificate for a disposition of a principal residence in Canada by a non-resident owner Beneficial ownership Ownership issues in the province of Quebec Sole or joint ownership Ownership in dispute Share in the capital stock of a co-operative housing corporation Interest in a property under an enforceable agreement for sale Ownership issues with condominium units Property on leased land Acquisition of a property by way of gift or inheritance Appendix A Illustration of the rule in subsection 40(6) Appendix B Illustration of calculation of gain on disposition of a farm property Application Reference Chapter History Introduction General Legislative and other changes S5-F1-C1: Determining an Individual's Residence Status Summary Discussion and interpretation General Overview Provincial residence Meaning of resident Meaning of ordinarily resident Factual residence – leaving Canada Residential ties in Canada Significant residential ties Secondary residential ties Other residential ties Application of term ordinarily resident Evidence of intention to permanently sever residential ties Steps taken to comply with the Act Regularity and length of visits to Canada Residential ties elsewhere Date non-resident status acquired More information Factual residence – entering Canada Establishing residential ties in Canada Dwelling leased to a third party Date resident status acquired More information Deemed residents of Canada – subsection 250(1) Subsection 250(1) – overview Sojourners as deemed residents Other deemed residents Deemed non-residents – subsection 250(5) Application of subsection 250(5) More information The tie-breaker rules in tax treaties Meaning of liable to tax Permanent home test Centre of vital interests test More information How to obtain a determination of residence status International Tax Services Office Income Tax Rulings Directorate Competent Authority Services Application Reference Chapter History Introduction General Legislative and other changes S5-F2-C1: Foreign Tax Credit Summary Discussion and interpretation General overview Abbreviations and definitions used Foreign income or profits tax Business-income tax Non-business-income tax No economic profit and short-term securities acquisitions Amount paid by the taxpayer for the year Foreign business income Foreign non-business income Determination of the location of a source of income Business income Employment income Income from property Capital gains Tax-exempt income TFSAs and RRSPs Minimum tax Tax sparing The foreign tax credit formula Full-year residents of Canada Non-business income Business-income Part-year residents Calculation of the amount of net income from sources in a foreign country General Capital gains and losses Addition to taxable income to prevent reduction to foreign tax credit Relief from double tax by taxing on a deferred basis Carryforward and carryback General Prescribed form Ceasing or commencing business Amalgamation Winding-up Application Reference Chapter History Introduction General Legislative and other changes Appendix E – Reference tables Automobile deduction limit and expense benefit rates Capital cost allowance Capital cost allowance rates (by class) Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class 8 Class 9 Class 10 Class 10.1 Class 11 Class 12 Class 13 Class 14 Class 14.1 Class 15 Class 16 Class 17 Class 18 Class 19 Class 20 Class 21 Class 22 Class 23 Class 24 Class 25 Class 26 Class 27 Class 28 Class 29 Class 30 Class 31 Class 32 Class 33 Class 34 Class 35 Class 36 Class 37 Class 38 Class 39 Class 40 Class 41 Class 41.1 Class 41.2 Class 42 Class 43 Class 43.1 Class 43.2 Class 44 Class 45 Class 46 Class 47 Class 48 Class 49 Class 50 Class 51 Class 52 Class 53 Capital cost allowance rates (by item) A B C D E F G H I J K L M N O P Q R S T U V W X Y Capital gains and losses Inclusion rates Lifetime capital gains exemption (LCGE) limit for qualified property CPP–QPP payment rates Employment insurance premiums and Quebec parental insurance premiums Foreign exchange rates Maximum personal marginal income tax rates Non-refundable credits – Maximum combined federal and provincial value OAS, GIS and SPA payments Penalties and offences Personal income tax credits indexed under subsection 117.1(1) Personal income tax credits indexed under subsection 122.61(5) Personal income tax rates and credits – Combined Prescribed interest rates Alberta Federal Late tax, refunds, benefits, and PLOI [Reg. 4301] Leasing rules [Reg. 4302] 2014–2018 2004–2013 1994–2003 Ontario Quebec Probate fees RPPs, RRSPs, DPSPs, and TFSAs – Annual limits Status of international tax treaty negotiations I. In force (93) II. Signed but not yet in force (4) III. Under negotiation/re-negotiation (7) Treaty withholding tax rates – Dividends, interest, royalties, and trust and estate incomes Treaty withholding tax rates – Pension and annuities US foreign earned income and foreign housing exclusions US personal federal income tax rates for ordinary income US social security and medicare taxes  What's new for 2017?
Personal tax calendar (2018)  Filing tips for 2017 personal tax returns
Chapter 1 – The T1 return – Getting started
Chapter 2 – Total income
Chapter 3 – Net income deductions
Chapter 4 – Taxable income
Chapter 5 – Federal non-refundable tax credits
Chapter 6 – Federal tax payable or refundable
Chapter 7 – Provincial and territorial tax
Chapter 8 – Quebec provincial income tax
Chapter 9 – Special situations and tax planning
Chapter 10 – Taxation of immigrants, emigrants, and non-residents
Chapter 11 – Administration
Appendices
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