Guide to Preparing 2020 Personal Tax Returns
What's new for 2020? COVID-19 economic relief measures
Personal tax calendar (2021) Personal tax rates and tools
Filing tips for 2020 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
Appendix A T1 jackets, worksheets, and schedules T1 5000-R Income Tax and Benefit Return (for PE, NS, NB, NU) T1 5001-R Income Tax and Benefit Return (for NL) T1 5005-R Income Tax and Benefit Return (for QC) T1 5006-R Income Tax and Benefit Return (for ON) T1 5010-R Income Tax and Benefit Return (for BC) T1 5011-R Income Tax and Benefit Return (for YT) T1 5012-R Income Tax and Benefit Return (for NT) T1 5013-R Income Tax Benefit Return for Non-Residents and Deemed Residents of Canada T1 5015-R Income Tax and Benefit Return (for MB, SK, AB) Federal Worksheet for Residents Federal Worksheet for Non-Residents Schedule 2 Federal Amounts Transferred From Your Spouse or Common-Law Partner Schedule 3 Capital Gains (or Losses) Schedule 5 Amounts for Spouse or Common-Law Partner and Dependants Schedule 6 Canada Workers Benefit Schedule 7 RRSP, PRPP, and SPP Unused Contributions, Transfers, and HBP or LLP Activities Schedule 8 Canada Pension Plan Contributions and Overpayment Schedule 9 Donations and Gifts Schedule 11 Federal Tuition, Education, and Textbook Amounts and Canada Training Credit Schedule 13 Employment Insurance Premiums on Self-Employment and Other Eligible Earnings Schedule A Statement of World Income Non-Residents of Canada Schedule B Allowable Amount of Non-Refundable Tax Credits Non-Residents of Canada Schedule C Electing Under Section 217 of the Income Tax Act Non-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 Canada Workers 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 2020 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 T90 Income Exempt Under the Indian Act T123 Election on Disposition of Canadian Securities T137 Request for Destruction of Records 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 T777S Statement of Employment Expenses for Working at Home Due to COVID-19 T778 Child Care Expenses Deduction T929 Disability Supports Deduction T936 Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2020 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 or Joint Designation on the Death of a PRPP Member 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 2019 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 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), 147.5(21) or 146(21), 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 T2200S Declaration of Conditions of Employment for Working at Home Due to COVID-19 T2201 Disability Tax Credit Certificate T2202 Tuition and Enrolment Certificate T2203 Provincial and Territorial Taxes for Multiple Jurisdictions T2204 Employee Overpayment of Employment Insurance Premiums T2205 Amounts from a Spousal or Common-law Partner RRSP, RRIF or SPP to Include in Income T2209 Federal Foreign Tax Credits T2210 Verification of Policy Loan Interest by the Insurer T2220 Transfer from an RRSP, RRIF, PRPP or SPP to Another RRSP, RRIF, PRPP, or SPP on Breakdown of Marriage or Common-Law Partnership T2222 Northern Residents Deductions T3012A Tax Deduction Waiver on the Refund of your Unused RRSP, PRPP, or SPP Contributions from your RRSP 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 TL2 Claim for Meals and Lodging Expenses TL11A Tuition, Education, and Textbook Amounts Certificate University Outside Canada 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 Federal Income Tax and Benefit Guide (2020) 5000-G Is this income tax package for you? What's new for 2020? The CRA's services Individuals and families Amounts received related to COVID-19 Do you have to file a return? Deceased persons Due dates, penalties, and interest Due dates Exceptions Penalties Interest Interest you must pay to the CRA Interest paid to you by the CRA Cancel or waive penalties or interest Gather all your documents What if you are missing information? Need help doing your taxes? How to file your return Which income tax package should you use? Forms and publications Exceptions Definitions Residential ties Deemed resident Non-resident Other publications you may need Step 1 Identification and other information Email address Information about your residence Information about you Marital status Information about your spouse or common-law partner Residency information for tax administration agreements (page 1 of your return) Elections Canada (page 2 of your return) If you tick "No" to question B Deceased persons Foreign property (page 2 of your return) Step 2 Total income Report foreign income and other foreign amounts Line 10100 Employment income Security options benefits Wage-loss replacement plan income Line 10400 Other employment income Retirement income Summary table Line 11300 Old age security (OAS) pension Line 11400 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 11500 Other pensions and superannuation Pension income splitting Pensions from a foreign country Line 11600 Elected split-pension amount Line 11900 Employment insurance and other benefits Line 11905 Employment insurance maternity and parental benefits and provincial parental insurance plan benefits Line 12000 Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations Amount of dividends (eligible and other than eligible) Amount of dividends (other than eligible) If you did not receive an information slip Eligible dividends Other than eligible dividends Line 12100 Interest and other investment income Information slips Foreign income Bank accounts Term deposits, guaranteed investment certificates (GICs), and other similar investments Treasury bills Earnings on life insurance policies Line 12200 Net partnership income: limited or non-active partners only Line 12700 Taxable capital gains Line 12900 RRSP income RRSPs for spouse or common-law partner Repayments under the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP) Line 13000 Other income Lump-sum payments Death benefits (other than CPP or QPP death benefits) CPP or QPP death benefit Other kinds of income Line 13010 Scholarships, fellowships, bursaries, and artists' project grants Lines 13499 to 14300 Self-employment income Line 14500 Social assistance payments Other amounts you need to report throughout the return Retroactive lump-sum payments Loans and transfers of property Tax shelters Step 3 Net income Line 20600 Pension adjustment Line 20700 Registered pension plan (RPP) deduction Line 21000 Deduction for elected split-pension amount Line 21200 Annual union, professional, or like dues Line 21400 Child care expenses Line 22100 Carrying charges and interest expenses Line 22200 Deduction for CPP or QPP contributions on self-employment and other earnings Making additional CPP contributions Residents of a province other than Quebec on December 31, 2020 Residents of Quebec on December 31, 2020 Request for refund of CPP contributions Line 22215 Deduction for CPP or QPP enhanced contributions on employment income Line 22900 Other employment expenses Line 23200 Other deductions Income amounts repaid Other deductible amounts Line 23600 Net income Step 4 Taxable income Line 25000 Other payments deduction Line 25300 Net capital losses of other years Line 25600 Additional deductions Exempt foreign income Vow of perpetual poverty Employees of prescribed international organizations Step 5 Federal tax Part A Federal tax on taxable income Part B Federal non-refundable tax credits Canada caregiver amount (information applies to lines 30300, 30400, 30425, 30450 and 30500 of your return) Newcomers to Canada and emigrants Amounts for non-resident dependants Line 30300 Spouse or common-law partner amount Net income of spouse or common-law partner Line 30400 Amount for an eligible dependant Eligible dependant with an impairment in physical or mental functions Line 30800 Base CPP or QPP contributions through employment income CPP working beneficiaries Overpayment Request for refund of CPP contributions Line 31000 Base CPP or QPP contributions on self-employment and other earnings Line 31200 Employment insurance premiums through employment Insurable earnings Overpayment Request for refund of EI contributions Line 31205 Provincial parental insurance plan (PPIP) premiums paid Line 31210 PPIP premiums payable on employment income Line 31350 Digital news subscription expenses NEW! Line 31600 Disability amount (for self) Line 31800 Disability amount transferred from a dependant Line 32400 Tuition amount transferred from a child Line 33099 Medical expenses for self, spouse or common-law partner, and your dependent children born in 2003 or later Eligible medical expenses Line 33199 Allowable amount of medical expenses for other dependants Part C Net federal tax Recapture of investment tax credit Federal logging tax credit Line 40424 Federal tax on split income Line 40425 Federal dividend tax credit If you did not receive an information slip Lines 41300 and 41400 Labour-sponsored funds tax credit Line 41800 Special taxes RESP accumulated income payments Tax on excess employees profit-sharing plan (EPSP) amounts Tax related to not purchasing replacement shares in a Quebec labour-sponsored fund Step 6 Provincial or territorial tax Step 7 Refund or balance owing Line 43700 Total income tax deducted Line 43800 Tax transfer for residents of Quebec Line 44000 Refundable Quebec abatement Line 45000 Employment insurance overpayment Line 45200 Refundable medical expense supplement Line 45350 Canada training credit (CTC) NEW! Lines 46800 and 46900 Eligible educator school supply tax credit Line 47555 Canadian journalism labour tax credit (CJLTC) NEW! Line 47600 Tax paid by instalments Line 47900 Provincial or territorial credits How to pay your balance owing or to get your refund Line 48400 Refund Direct deposit Line 48500 Balance owing What documents to attach to your paper return Documents required to support reported income Documents required to support deductions and credits claimed After sending your return Notice of assessment Processing time How to change a return Service complaints Formal disputes (objections and appeals) Reprisal complaints T1 Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada (2020) 5013-G Is this guide for you What's new for 2020 The CRA's services Individuals and families Amounts received related to COVID-19 Completing your return Do you have to file a return Deceased persons Determining your residency status Were you a non-resident of Canada in 2020 What income should you report What are residential ties Were you a non-resident of Canada in 2020 who wants to elect under section 217 Were you a non-resident of Canada in 2020 who wants to elect under section 216.1 Were you a deemed non-resident of Canada in 2020 Were you a deemed resident of Canada in 2020 What income should you report Were you a member of the overseas Canadian Forces school staff who left Canada in 2020 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 Due dates, penalties, and interest Due dates Exceptions Penalties Interest Interest you must pay to the CRA Interest paid to you by the CRA Cancel or waive penalties or interest Gather all your documents What if you are missing information Need help doing your taxes How to file your return Which income tax package should you use Forms and publications Step 1 Identification and other information Email address Information about your residence Information about you Social insurance number (SIN) Marital status Information about your spouse or common-law partner Elections Canada (page 2 of your return) If you tick "No" to question B Deceased persons Your residency status Foreign property (page 2 of your return) Step 2 Total income Report foreign income and other foreign amounts Line 10100 Employment income Emergency services volunteers Security options benefits Wage-loss replacement plan income Member of the clergy Line 10400 Other employment income Retirement income Summary table Line 11300 Old age security (OAS) pension Line 11400 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 11500 Other pensions and superannuation Pension income splitting Pensions from a foreign country Line 11600 Elected split-pension amount Line 11900 Employment insurance and other benefits Line 11905 Employment insurance maternity and parental benefits and provincial parental insurance plan benefits Line 12000 Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations Amount of dividends (eligible and other than eligible) Amount of dividends other than eligible If you did not receive an information slip Eligible dividends Other than eligible dividends Line 12100 Interest and other investment income Information slips Foreign income Bank accounts Term deposits, guaranteed investment certificates (GICs), and other similar investments Treasury bills Earnings on life insurance policies Line 12200 Net partnership income: limited or non-active partners only Line 12500 Registered disability savings plan (RDSP) income Line 12700 Taxable capital gains Line 12900 RRSP income RRSPs for spouse or common-law partner Repayments under the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP) Line 13000 Other income Lump-sum payments Death benefits (other than CPP or QPP death benefits) CPP or QPP death benefit Other kinds of income Line 13010 Scholarships, fellowships, bursaries, and artists' project grants Lines 13499 to 14300 Self-employment income Line 14500 Social assistance payments Other amounts you need to report throughout the return Retroactive lump-sum payments Loans and transfers of property Tax shelters Step 3 Net income Line 20600 Pension adjustment Line 20700 Registered pension plan (RPP) deduction Line 20800 RRSP deduction Line 21000 Deduction for elected split-pension amount Line 21200 Annual union, professional, or like dues Line 21400 Child care expenses Line 21700 Business investment loss Line 22100 Carrying charges and interest expenses Line 22200 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 22215 Deduction for CPP or QPP enhanced contributions on employment income Line 22900 Other employment expenses Line 23200 Other deductions Income amounts repaid Legal fees Other deductible amounts Line 23500 Social benefits repayment Line 23600 Net income Step 4 Taxable income Line 25000 Other payments deduction Line 25300 Net capital losses of other years Line 25600 Additional deductions Exempt foreign income Vow of perpetual poverty Employees of prescribed international organizations Step 5 Federal tax Schedule A, Statement of World Income Part A Federal tax on taxable income Part B Federal non-refundable tax credits What amounts can you claim Schedule B, Allowable Amount of Non-Refundable Tax Credits Canada caregiver amount (information applies to lines 30300, 30400, 30425, 30450 and 30500 of your return) Amounts for non-resident dependants Line 30300 Spouse or common-law partner amount Line 30400 Amount for an eligible dependant Eligible dependant with an impairment in physical or mental functions Line 30800 Base CPP or QPP contributions through employment income Making additional CPP contributions Overpayment Request for refund of CPP contributions Line 31000 Base CPP or QPP contributions on self-employment and other earnings Line 31200 Employment insurance premiums through employment Insurable earnings Overpayment Request for refund of EI contributions Line 31205 Provincial parental insurance plan (PPIP) premiums paid Line 31210 PPIP premiums payable on employment income Line 31350 Digital news subscription expenses NEW! Line 31600 Disability amount (for self) Line 31800 Disability amount transferred from a dependant Line 32400 Tuition amount transferred from a child Line 33099 Medical expenses for self, spouse or common-law partner, and your dependent children born in 2003 or later Eligible medical expenses Line 33199 Allowable amount of medical expenses for other dependants Part C Net federal tax Recapture of investment tax credit Federal logging tax credit Line 40424 Federal tax on split income Line 40425 Federal dividend tax credit Lines 41300 and 41400 Labour-sponsored funds tax credit Line 41450 Section 217 tax adjustment Line 41800 Special taxes RESP accumulated income payments Tax on excess employees profit-sharing plan (EPSP) amounts Tax related to not purchasing replacement shares in a Quebec labour-sponsored fund Line 120 Surtax for non-residents of Canada and deemed residents of Canada Step 6 Provincial or territorial tax Calculation of provincial and territorial tax Step 7 Refund or balance owing Line 42200 Social benefits repayment Line 43700 Total income tax deducted Line 43800 Tax transfer for residents of Quebec Line 44000 Refundable Quebec abatement Line 45000 Employment insurance overpayment Line 45200 Refundable medical expense supplement Line 45350 Canada training credit (CTC) NEW! Lines 46800 and 46900 Eligible educator school supply tax credit Eligible educator Eligible supplies expense Line 47555 Canadian journalism labour tax credit (CJLTC) NEW! Line 47600 Tax paid by instalments How to pay your balance owing or to get your refund Line 48400 Refund Direct deposit Line 48500 Balance owing What documents to attach to your return Documents required to support reported income Documents required to support deductions and credits claimed After sending your return Notice of assessment Processing time How to change a return Service complaints Formal disputes (objections and appeals) Reprisal complaints Contact the Canada Revenue Agency By telephone By mail Capital Gains (2020) T4037 Before you start Is this guide for you? What's new for 2020? 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) 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 Property you inherit or receive as a gift Selling a building in 2020 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 Partnerships Disposition of an interest in a partnership to a non-resident or tax-exempt entity 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 2020 net capital loss to previous years? How do you apply your net capital losses of other years to 2020? Chart 4 Applying net capital losses of other years to 2020 Losses incurred before May 23, 1985 Chart 5 Applying net capital losses of other years to 2020 (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 all your rental or business property to a principal residence Changing part of your principal residence to a rental or business property or vice versa Farm property Reference documents Forms Income Tax Folios Information Circulars Information Sheet Interpretation Bulletins (Archived) For more information What if you need help? Forms and publications My Account & MyCRA Digital services for individuals My Account MyCRA mobile web app Receiving your CRA mail online Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Complaints and disputes Service complaints Formal disputes (objections and appeals) Reprisal complaints Ceiling Amounts for Housing Benefits Paid in Prescribed Zones (2021) RC4054 Changes for 2021 Message to employers Housing benefit ceiling amounts Common shelter Apartment and duplex House and trailer Death of a RRIF Annuitant or a PRPP Member (2020) 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 Qualifying survivors 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 Post-death increase or decrease in value Digital services My Account MyCRA mobile web app Receiving your CRA mail online 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 Due dates Cancel or waive penalties or interest Death of an RRSP Annuitant (2020) 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 Qualifying survivors 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 Digital services My Account MyCRA mobile web app Receiving your CRA mail online 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 Due Dates Cancel or waive penalties or interest Disability-Related Information (2020) RC4064 Is this guide for you? 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 31600) Disability amount transferred from a dependant (line 31800) Amounts transferred from your spouse or common-law partner (line 32600) Amount for an eligible dependant (line 30400) 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 30400 If you cannot claim an amount for your dependant on line 30400 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 33099 and 33199) Home buyers' amount (line 31270) Who is eligible? Home accessibility expenses (line 31285) Who is eligible? Which renovations are eligible? Refundable tax credits Refundable medical expense supplement (line 45200) Canada workers benefit (line 45300) Other tax measures Child care expenses (line 21400) Disability supports deduction (line 21500) 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 Digital services for individuals My Account MyCRA mobile web app Receiving your CRA mail online For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Complaints and disputes Service-related complaints Formal disputes (objections and appeals) Reprisal complaints Electing Under Section 217 of the Income Tax Act (2020) 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 Step 5 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 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) Contact the Canada Revenue Agency By telephone By mail Employers' Guide: Payroll Deductions and Remittances (2020) T4001 Is this guide for you? Whats new? Canada Pension Plan Enhancement The 10% Temporary Wage Subsidy for Employers Remittance due dates View remitting requirements 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 Employee reports to your establishment Employee does not report to your establishment No establishment in Canada Special situations 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 Note Interest Summary convictions Directors 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 Stopping CPP contributions Restarting CPP contributions 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 Canadas 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, Fishers 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 Calculate as follows: Death of an employee CPP contributions EI premiums Income tax Directors fees Employment income You only pay directors fees CPP contributions EI premiums Income tax Calculation You pay directors fees as well as a salary CPP contributions EI premiums Income tax Application for a waiver of tax withholding Directors 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 Top-up amount The T4 slip and T5007 slip, Statement of Benefits 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 lιquitι, de la santι et de la sιcuritι 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 Application for coverage under CPP 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 Payment on Filing 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-RB Form PD7A-RB has two parts: Missing or lost remittance forms Not making a remittance TeleReply Hours of operation Before you call TeleReply How to use 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 Appendices 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 Canadas social security agreements with other countries Appendix 5 Calculation of employee EI premiums (2020) Appendix 6 Special Payments Chart Online services Handling business taxes online CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account Electronic payments For more information What if you need help? Direct deposit Due dates Forms and publications Teletypewriter (TTY) users Complaints and disputes Service-related complaints Formal disputes (objections and appeals) Reprisal complaints Electronic mailing lists Addresses Tax services offices (TSO) Tax centres (TC) National Verification and Collection Centres (NVCC) Publications for employers Employers' Guide: Taxable Benefits and Allowances (2020) T4130 Is this guide for you? What's new? Municipal officers expense allowance Overtime meals or allowances 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 Exceptions 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 Employees benefit Shareholders benefit Automobile and motor vehicle allowances Reasonable per-kilometre allowance Reasonable allowance rates Per-kilometre allowance rates that are not considered 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 Aircraft Benefits 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 at a special work site Transportation Form TD4, Declaration of Exemption Employment at a Special Work Site Remote work locations Board and lodging at a remote work location 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 Employer provided or paid benefit Employee owned or rented allowance 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 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 moving 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 in a prescribed zone 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 CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account For more information What if you need help? Addresses Tax services offices Tax centres Direct deposit Forms and publications Electronic mailing lists Related publications Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Complaints and disputes Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Employment Expenses (2020) T4044 Before you start Is this guide for you? Forms included in this guide Whats new for 2020? Employees working at home due to COVID-19 Who is eligible? What can you claim? Eligible expenses Non-eligible expenses Completing Form T777S, Statement of Employment Expenses for Working at Home Due to COVID-19 Option 1 Temporary flat rate method Option 2 Detailed method Deductible expenses Supplies Cell phone Long distance calls Work-space-in-the-home expenses Calculating your work space in the home expenses Type of work space Common area Designated room One employee working in the home Multiple employees working in the same home Different work spaces Sharing a designated room Sharing the same common area: Change of work space Chapter 1 - Keeping records Employees who are shareholders 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 costs 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 costs 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 Meals and lodging expenses - Simplified method 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 employment 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 Zero-emission passenger vehicle (ZEPV) Joint ownership Employment use of a motor vehicle Interest expense Leasing costs Repayments and imputed interest Eligible leasing costs for passenger vehicles leased after December 31, 2000 Chapter 9 - Capital cost allowance (depreciation) Definitions Can you claim CCA? Classes of depreciable properties Class 8 Class 10 Class 10.1 Zero-Emission Vehicles How to calculate capital cost allowance Part A - Classes 8, 10, 54 and 55 property Column 2 - Undepreciated capital cost at the start of the year Column 3 - Cost of additions in the year Column 4 Cost of additions which are accelerated investment incentive properties (AIIP) or zero-emission vehicles (ZEV) Column 5 - Proceeds of disposition in the year Column 6 - Undepreciated capital cost after additions and dispositions Column 7 Proceeds of dispositions available to reduce additions of AIIP or ZEV Column 8 UCC adjustment for current-year additions of AIIP and ZEV Column 9 - Adjustments for current-year additions Column 10 - Base amount for capital cost allowance Column 12 - Capital cost allowance for the year Column 13 - UCC at the end of the year Part B - Class 10.1 property Column 2 - Undepreciated capital cost at the start of the year Column 3 - Cost of additions in the year Column 4 - Proceeds of disposition in the year Column 5 - Base amount for capital cost allowance Column 7 - CCA for the year Column 8 - UCC 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 Archived Interpretation bulletins Consolid Archived Interpretation bulletins For more information What if you need help? Forms and publications My Account Receiving your CRA mail online Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Formal disputes (objections and appeals) Reprisal complaint Farming Income and the AgriStability and AgriInvest Programs Guide (2019) RC4060 Before you start Is this guide for you? AgriStability and AgriInvest contact information Forms and publications Where to mail your forms and return Do you need more information? What's new for 2019? New capital cost allowance (CCA) classes: Class 54 (30%) and Class 55 (40%) for business investment in zero-emission vehicles Enter your business number on your form Change in use rules for part of property such as Multi-unit residential properties Chapter 1 General information Farming income Reporting income and penalties When you must start reporting income and can start deducting expenses 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 Instalment payment Dates to remember Important information for AgriStability and AgriInvest Employment insurance (EI) premiums 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) GST/HST rebate for partners Investment tax credit (ITC) Scientific research and experimental development (SR&ED) 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 information Participant identification 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) Identification Fiscal period Method of accounting Was your farm involved in any of the following? Chapter 3 Calculating your farming income or loss Commodity and Program payment code lists Income Farming activities outside Canada Point of sale Payment in kind Gifts Crop share Commodity futures Grains, oilseeds, and special crops Storage and cash purchase tickets Cash advances Tree production Allowable tree production Non-allowable tree production Wood sales (including stumpage) 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 Expenses Current or capital expenses Disability-related modifications Grants, credits, and rebate GST/HST input tax credits and exempt goods and services 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 (crop or production) 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 a private health services plan (PHSP) How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2019 If you had employees throughout 2019 If you had employees for part of the year 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 or passenger vehicle (including zero-emission vehicles and zero-emission passenger vehicles) 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 (tobacco, dairy) Line 9826 Gravel Line 9827 Purchases of commodities resold Line 9829 Motor vehicle interest and leasing costs Leasing costs for a passenger vehicle (or a vehicle that would qualify as a zero-emission passenger vehicle if you owned it) Repayments and imputed interest Joint ownership of a passenger vehicle or a zero-emission passenger vehicle Line 9936 Capital cost allowance Line 9937 Mandatory inventory adjustments prior year Line 9938 Optional inventory adjustments 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 Value of your purchased inventory Partnership information Your share of amount C Line 9934 Adjustment to business-use-of-home expenses Line 9974 GST/HST rebate for partners received in the year Line 9946 Net farming income (loss) Partnership information chart Partnership name Your percentage of the partnership AgriStability and AgriInvest Participant Identification Number (PIN) Partners' names Percentage (%) share Chapter 4 Capital cost allowance (CCA) What is capital cost allowance? How much CCA you can claim Basic information 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 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 Area B Equipment additions in the year Area C Building additions in the year Land Area F Land additions and dispositions in the year Area G Quota additions and dispositions in the year Column 4 Cost of additions from column 3 which are eligible accelerated investment incentive properties (AIIPs) or zero-emission vehicles (ZEVs) Column 5 Proceeds of dispositions in the year Area D Equipment dispositions in the year Area E Building dispositions in the year Area F Land additions and dispositions in the year Area G Quota additions and dispositions in the year Column 6 Undepreciated capital cost (UCC) after additions and dispositions Recapture of CCA Terminal loss Column 7 Proceeds of dispositions available to reduce additions of AIIP and ZEV Column 8 Undepreciated capital cost (UCC) for current-year additions of AIIP and ZEV Column 9 Adjustment for current year additions subject to the half-year rule Column 10 Base amount for CCA Column 11 CCA rate (%) Column 12 CCA for the year Column 13 UCC at the end of the year Classes of depreciable property Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Class 10 (30%) Class 10.1 (30%) Class 12 (100%) Class 14 (5%) Class 14.1 (5%) Class 45 (45%) Class 46 (30%) Class 50 (55%) Class 52 (100%) Class 54 (30%) and Class 55 (40%) Zero-emission vehicles Class 54 (30%) Class 55 (40%) Special situations Personal use of property Changing from personal to business use Grants, subsidies, and rebates Non-arm's length transactions Special rules for disposing of a building in the year Replacement property Details of equity Line 9931 Total business liabilities Line 9932 Drawings in 2019 Line 9933 Capital contributions in 2019 Chapter 5 Eligible capital expenditures What is an eligible capital expenditure? What is an annual allowance? What is a cumulative eligible capital (CEC) account? Transitional rules Undepreciated capital cost balance Transitional rules Deemed gain immediately before January 1, 2017 Transitional rules Dispositions of former ECP Transitional rules Non-arm's length dispositions of former ECP Chapter 6 Farm losses Fully deductible farm losses Applying your 2019 farm loss Applying your farm losses from years before 2019 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2019 restricted farm loss Applying your restricted farm losses from years before 2019 Non-deductible farm losses Non-capital losses Chapter 7 Capital gains What is a capital gain? What is a capital loss? How to calculate your capital gain or loss Did you sell in 2019 capital property 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 property included in Class 14.1 Real property or property included in Class 14.1 bought before June 18, 1987 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 web app Receiving your CRA mail online Handling business taxes online CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account MyBenefits CRA 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-related complaints Formal disputes (objections and appeals) Reprisal complaints Due Dates Cancel or waive penalties or interest Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide (2019) RC4408 Before you start Is this guide for you? AgriStability and AgriInvest contact information Federal Administration contact information Provincial Administration contact information Forms and publications Where to mail your forms and return How to send additional information for AgriStability and AgriInvest AgriStability and AgriInvest form deadline Do you need more information? What's new for 2019? New capital cost allowance (CCA) classes: Class 54 (30%) and Class 55 (40%) for business investment in zero-emission vehicles Enter your business number on your form Change in use rules for part of property such as Multi-unit residential properties Chapter 1 General information Farming income Reporting income and penalties When you must start reporting income and can start deducting expenses 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 Instalment payment Dates to remember Important information for AgriStability and AgriInvest Employment insurance (EI) premiums 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) GST/HST rebate for partners Investment tax credit (ITC) Scientific research and experimental development (SR&ED) 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 Participant information Participant identification 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) Other farming information Location of main farmstead Combined operations Identification Fiscal period Method of accounting Was your farm involved in any of the following? Chapter 3 Calculating your farming income or loss Commodity and Program payment code lists Income Farming activities outside Canada Point of sale Payment in kind Gifts Crop share Commodity futures Grains, oilseeds, and special crops Storage and cash purchase tickets Cash advances Tree production Allowable tree production Non-allowable tree production Wood sales (including stumpage) 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 Expenses Current or capital expenses Do not include any of the following in your expenses: Disability-related modifications Grants, credits, and rebates GST/HST input tax credits and exempt goods and services 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 (crop or production) 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 a private health services plan (PHSP) How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2019 If you had employees throughout 2019 If you had employees for part of the year 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 or passenger vehicle (including zero-emission vehicles and zero-emission passenger vehicles) What type of vehicle do you own? 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 (tobacco, dairy) Line 9826 Gravel Line 9827 Purchases of commodities resold Line 9829 Motor vehicle interest and leasing costs Leasing costs for a passenger vehicle (or a vehicle that would qualify as a zero-emission passenger vehicle if you owned it) Repayments and imputed interest Joint ownership of a passenger vehicle or a zero-emission passenger vehicle Line 9936 Capital cost allowance Line 9937 Mandatory inventory adjustments prior year Line 9938 Optional inventory adjustments 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 Value of your purchased inventory Partnership information Your share of amount C Line 9934 Adjustment to business-use-of-home expenses Line 9974 GST/HST rebate for partners received in the year Line 9946 Net farming income (loss) Partnership information chart Partnership name Your percentage of the partnership AgriStability and 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? If you participated in crop or production insurance in the program year for this operation, provide the Contract or Identification numbers. Crop inventory valuation and productive capacity How to fill in the columns Code and Crop/Grade Units Acres Unseedable acres Quantity produced Ending Inventory End of year price Crops or forage carried over from 2018 but no longer seeded or produced in 2019 Landlords/tenants Commodity pools Perishable horticulture crops Swath grazing Organic production Unharvestable acres Snowed-under crops Standing crops Multiple crops Multi-stage crops Highbush blueberries and grapes Lowbush blueberries Sod Christmas trees Echinacea and ginseng Cranberries Hops Sweet cherries and apples Livestock inventory valuation How to fill in the columns Code and description Ending inventory End of year price Livestock lease agreements 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) Purchased inputs How to fill in the columns Code and description End of year amount Livestock owners and custom feedlot operators with prepared feed purchases Ranch fur operators with prepared feed expenses Deferred income and receivables How to fill in the columns Code and description Ending receivables and income deferred to 2020 Commodity pools Custom feedlot operator income Prescribed drought region (PDR), Prescribed flood region (PFR) and Canadian Food Inspection Agency (CFIA) deferrals Perishable horticulture crops Accounts payable How to fill in the columns Code and description End of year amount Livestock owners and custom feedlot operators with prepared feed purchases Livestock owners with custom feeding expenses Ranch fur operators with prepared feed expenses Chapter 5 Capital cost allowance (CCA) What is capital cost allowance? How much CCA you can claim Basic information 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 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 Area B Equipment additions in the year Area C Building additions in the year Land Area F Land additions and dispositions in the year Area G Quota additions and dispositions in the year Column 4 Cost of additions from column 3 which are eligible accelerated investment incentive properties (AIIPs) or zero-emission vehicles (ZEVs) Column 5 Proceeds of dispositions in the year Area D Equipment dispositions in the year Area E Building dispositions in the year Area F Land additions and dispositions in the year Area G Quota additions and dispositions in the year Column 6 Undepreciated Capital Cost (UCC) after additions and dispositions Recapture of CCA Terminal loss Column 7 Proceeds of dispositions available to reduce additions of AIIP and ZEV Column 8 Undepreciated capital cost (UCC) for current-year additions of AIIP and ZEV Column 9 Adjustment for current year additions subject to the half-year rule Column 10 Base amount for CCA Column 11 CCA rate (%) Column 12 CCA for the year Column 13 UCC at the end of the year Classes of depreciable property Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Class 10 (30%) Class 10.1 (30%) Class 12 (100%) Class 14 (5%) Class 14.1 (5%) Class 45 (45%) Class 46 (30%) Class 50 (55%) Class 52 (100%) Class 54 (30%) and Class 55 (40%) Zero-emission vehicles Class 54 (30%) Class 55 (40%) Special situations Personal use of property Changing from personal to business use Grants, subsidies, and rebates Non-arm's length transactions Special rules for disposing of a building in the year Replacement property Details of equity Line 9931 Total business liabilities Line 9932 Drawings in 2019 Line 9933 Capital contributions in 2019 Chapter 6 Eligible capital expenditures What is an eligible capital expenditure? What is an annual allowance? What is a cumulative eligible capital (CEC) account? Transitional rules Undepreciated capital cost balance Transitional rules Deemed gain immediately before January 1, 2017 Transitional rules Dispositions of former ECP Transitional rules Non-arm's length dispositions of former ECP Chapter 7 Farm losses Fully deductible farm losses Applying your 2019 farm loss Applying your farm losses from years before 2019 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2019 restricted farm loss Applying your restricted farm losses from years before 2019 Non-deductible farm losses Non-capital losses Chapter 8 Capital gains What is a capital gain? What is a capital loss? How to calculate your capital gain or loss Did you sell in 2019 capital property 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 property included in Class 14.1 Real property or property included in Class 14.1 bought before June 18, 1987 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 web app Receiving your CRA mail online Handling business taxes online CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account MyBenefits CRA 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-related complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Gifts and Income Tax (2020) P113 Is this pamphlet for you? What's new for 2020? 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 MyCRA mobile web app Receiving your CRA mail online Tax Information Phone Service (TIPS) Service complaints Formal disputes (objections and appeals) Reprisal complaint Guide for the Partnership Information Return (T5013 Forms) 2019 (2019) T4068 Is this guide for you? Confidentiality of information Legislative references What's new? Zero emission vehicles Cultural gifts Internet file transfer availability Chapter 1 General information Who has to file a partnership information return? Nominees and agents who hold an interest in a partnership for another person Forms nominees or agents have to file Investment clubs on the modified-partnership basis Partnerships that do not have to file a partnership information return Who is responsible for filing Important reporting information for partners Information reporting of tax avoidance transactions Tax avoidance through the use of partnerships Additional information International tax and thin capitalization rules Partnerships Functional currency reporting Election under section 261 Specified investment flow-through partnerships How is Part IX.1 tax calculated? Tax shelters Who has to apply for a tax shelter number? When should the promoter apply for a tax shelter number? The tax shelter identification number Providing a tax shelter identification number Mandatory statement Statement of earnings prepared Identifying tax shelter participants Multiplication of the small business deduction Assigning specified partnership business limit Chapter 2 Filing methods Mandatory electronic filing Failure to file information returns over the Internet Web access code Web Forms (slips and summary only) Form T661, elections, and other paper forms Paper filing How to fill out the forms and schedules of the return Partnership account number How to get a partnership account number AgriStability and AgriInvest programs How to distribute the forms To the Canada Revenue Agency To the members of the partnership The partnership and nominees or agents Chapter 3 After you file What happens after you file your partnership information return? Keeping records Review and audit Notice of assessment Registering a formal dispute Amending your return Using tax preparation software and the electronic filing method Filing on paper Amending or cancelling slips Amending or cancelling slips electronically Amending or cancelling slips by paper Adding slips electronically Adding slips on paper Replacement slips Amending, cancelling, or adding slips without a web access code Chapter 4 Due dates Annual return Due dates Final return When may the CRA determine the income or loss of the partnership? Notice of determination Partnership waivers Date when we consider the partnership information return to be filed Date when we consider income tax, penalty, and interest payments to be effective Due dates for publicly traded partnerships to post their financial information on the CDS Innovations Inc. website Chapter 5 Penalties Late filing Late filing penalty under subsections 66(12.74) and 66(12.75) Repeated failure to file Offences and punishment Failure to provide social insurance numbers (SINs), business numbers (BNs), or other information Using an identification number Penalties applicable to tax shelters False or misleading information Failure to file an information return or report required information Failure to provide the tax shelter identification number If you provide an incorrect tax shelter identification number Misrepresentation of a tax matter by a third party Interest on penalties Cancel or waive penalties or interest Voluntary disclosures Chapter 6 Determining the net income or loss of the partnership and partners Calculating the partnership's income or loss Partnership income Net income or loss for income tax purposes Business and non-business activities Income sources Tax shelter investment Income from foreign sources Business investment loss Capital cost allowance (CCA) Scientific research and experimental development (SR&ED) Royalty payments to a third party Contract payments to a third party Allocating the income or loss to partners Losses Restricted farm losses Scientific research and experimental development (SR&ED) Chapter 7 Form T5013-FIN, Partnership Financial Return Filling out Form T5013-FIN, Partnership Financial Return Page 1 Identification Partnership account number Partnership name and operating or trading name Address areas Location of the partnership head office Mailing address of the partnership (if different from the head office address) Location of the partnership's books and records (if different from the head office address) Page 2 Header Documents required to be attached to Form T5013-FIN, Partnership Financial Return Other schedules, forms, and documents T5013 schedules Calculation and allocation of investment tax credits (ITCs) Other documents Page 3 Header Additional information Miscellaneous information Page 4 Header Additional information for all partnerships (including tax shelters that are partnerships) Additional information for tax shelters only Certification Language of correspondence Order of attachments On the front of the Form T5013-FIN, Partnership Financial Return: On the back of the Form T5013 FIN, Partnership Financial Return: Chapter 8 T5013 Schedules GIFI schedules T5013SCH1, Net Income (Loss) for Income Tax Purposes Reconciling the partnership's net income or loss for income tax purposes Supporting schedules Filling out T5013SCH1 Page 1 Lines 101 to 156, and line 199 Some specific adjustment items for the reconciliation Line 112 Charitable donations and gifts from T5013SCH2 Line 114 Political contributions from T5013SCH2 Line 121 Non-deductible meals and entertainment expenses Line 150 Salaries and wages paid to partners deducted on financial statements Line 151 Cost of products available for sale that were consumed Line 152 Personal expenses of the partners paid by the partnership Line 155 Renounced exploration, development and resource property expenses deducted per financial statements from T5013SCH52 Line 199 Line 501 Total Line 502 Deduct Line 503 Net income (loss) for income tax purposes Line 504 Deduct Line 505 Net income (loss) for income tax purposes for limited and non active partners Page 2 Header Lines 201 to 239 Some specific adjustment items for the reconciliation Line 201 Accounts payable and accruals for cash basis closing Line 202 Accounts receivable and prepaid for cash basis opening Line 203 Accrual inventory opening Line 232 Resource amounts deducted Line 506 Total Lines 290 to 294, and lines 600 to 604 Line 507 Total Line 508 Total Page 3 Header Lines 300 to 347 Some specific adjustment items for the reconciliation Line 301 Accounts receivable and prepaid for cash basis closing Line 302 Accrual inventory closing Lines 390 to 394, and lines 700 to 704 Line 509 Total Lines 401 to 417 Line 510 Total Line 511 Total T5013SCH2, Charitable Donations, Gifts, and Political Contributions Eligible amount of gift Advantage Filling out T5013SCH2 Page 1 Page 2 Header Parts 4, 5, and 7 Federal, provincial or territorial, and municipal political contributions Part 6 Gifts of medicine T5013SCH5, Allocation of Salaries and Wages, and Gross Revenue for Multiple Jurisdictions Filling out T5013SCH5 T5013SCH6, Summary of Dispositions of Capital Property Filling out T5013SCH6 Parts 1 through 9 Completing column numbers ending in 00, 01, 02, and 03 Parts 1 through 9 Completing columns with numbers ending in 05, 06, 07, 08, 09, and line numbers ending in 10 T5013SCH8, Capital Cost Allowance (CCA) Depreciable property Capital cost allowance (CCA) Disability-related modifications Available-for-use rule Calculating CCA Restriction on rental buildings Restriction on computer tax shelter property Replacement property CCA rates and classes Accelerated investment incentive property (AIIP) Filling out T5013SCH8 Election under Regulation 1101(5q) Deductions Additions Terminal loss Recapture of CCA T5013SCH8 examples List of the most common CCA rates and classes T5013SCH9, List of Partnerships When is a partnership a direct member? When is a partnership an indirect member? Filling out T5013SCH9 T5013SCH12, Resource-Related Deductions Oil sands Canadian exploration expense (CEE) and Canadian development expense Filling out T5013SCH12 Parts 1 to 5 T5013SCH50, Partner's Ownership and Account Activity Registered charities Filling out T5013SCH50 Partners 1 to 5 Lines 100 to 110 Ownership Line 220 Fiscal period's income (loss) allocation Lines 300 to 350 Account activity Lines 410 to 430 At-risk amount (ARA) (for limited partners only) T5013SCH52, Summary Information for Partnerships that Allocated Renounced Resource Expenses to their Members Filling out T5013SCH52 Part 1 Renounced Canadian exploration expenses and Canadian development expenses Summary of renounced resource expenses allocated to the members of the partnership and the portion of the reduction subject to an interest-free period Summary of assistance allocated or to be allocated Summary of expenses qualifying for an Investment Tax Credit (ITC) allocated to the members of the partnership Summary of expenses qualifying for a provincial tax credit Part 2 Calculating the penalty under subsections 66(12.74) and 66(12.75) for late filing this summary and the related T5013 slips GIFI schedules Chapter 9 T5013, Statement of Partnership Income and T5013SUM, Summary of Partnership Income Filling out the T5013 slip Fixed boxes Fiscal period end Tax shelter identification number Filer's name and address Partner's name and address Generic boxes Limited partner's net income (loss) Canadian and foreign net business income (loss) Canadian and foreign investments and carrying charges Other amounts and information Boxes 169 and 170 Part IX.1 tax Ecological gifts Allocation of unallocated partnership ITCs Tax shelter information Renounced Canadian exploration and development expenses Boxes 197 to 200 Expenses qualifying for provincial tax credits Tax shelter information Provincial tax credits Filling out the T5013SUM, Summary of Partnership Income For the fiscal period Partnership's account number Name of the partnership Are you a nominee or agent? Name of the nominee or agent Nominee or agent's account number Is the partnership a tax shelter? Reporting amounts and information from T5013 slips Person to contact about this return Certification Chapter 10 Transactions with non-residents of Canada Returns required Payments to non-residents of Canada Withholding requirements Penalties for failing to withhold or to remit non-resident tax Non-arm's length transactions with non-residents Foreign affiliates Transfers or loans to a non-resident trust Distributions from and indebtedness to a non-resident trust Penalties for failing to file an information return Disposing of taxable Canadian property by non-residents Disposing of taxable Canadian property by a partnership with non-resident partners Appendix A Canadian province or territory, and U.S. state, territory, or possession codes Canada United States Appendix B Country codes Appendix C References, initialisms and definitions References Acronyms Definitions Adjusted cost base (ACB) of a partnership interest At risk amount (ARA) Identification number Fiscal period Multi-tier election Election to use an off-calendar fiscal period under the alternative method Revoking your partnership's election to use an off-calendar fiscal period under the alternative method Partnerships that cannot use the alternative method to have an off-calendar fiscal period Flow-through shares Flow-through shares identification number Joint venture Eligible pooling arrangements Limited partnership loss (LPL) Nominee or agent Tax shelter Promoter Appraisals for donations of gifts in kind Types of partners End member General partner Limited partner (at any time during the fiscal period) Limited partner's exempt interest Specified member of a partnership Types of partnerships Canadian partnership Canadian resident partnership Limited liability partnership (LLP) Limited partnership Public investment partnership Public partnership Specified investment flow-through (SIFT) partnership Small business investment limited partnership Tiered partnership Online services Handling business taxes online CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Teletypewriter (TTY) users Tax Information Phone Service (TIPS) Service-related complaints Formal disputes (objections and appeals) Reprisal complaints Income Tax Guide for Electing Under Section 216 (2020) 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 the CRA Form NR6 What happens after the CRA approves your Form NR6 If you sent the CRA Form NR6, do you have to file a section 216 return When is your 2020 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 the CRA receives it How to change a return What should you do if you move Completing your section 216 return Identification Email Address Income Line 12600 Rental income and timber royalties Rental losses Interest income Deductions Line 20800 RRSP deduction Line 22000 Support payments made Line 23200 Other deductions Refund or balance owing Line 40427 Minimum tax carryover Line 43700 Total non-resident tax withheld Line 47600 Total tax remitted for the recapture of capital cost allowance (CCA) Line 48400 Refund Direct deposit Line 48500 Balance owing Digital Services for individuals My Account MyCRA mobile web app Receiving your CRA mail online MyBenefits CRA mobile app Electronic payments For more information What if you need help Forms and publications Getting personal tax information Representatives Service complaints Formal disputes (objections and appeals) Reprisal complaints To contact the Canada Revenue Agency By telephone By mail Lifelong Learning Plan (LLP) (2019) 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 Online services for individuals My Account MyCRA mobile web app Receiving your CRA mail online Electronic payments Related forms and publications Forms Guide For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Complaints and disputes Service-related complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Medical Expenses (2020) RC4065 Is this guide for you? 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 supports deduction Do you need a certification to claim medical expenses? What are the most common medical expenses 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? Digital services for individuals My Account MyCRA mobile web app Receiving your CRA mail online For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Complaints and disputes Service complaints Formal disputes (objections and appeals) Reprisal complaints Newcomers to Canada (2020) 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 tax package should you use Transmitting your return online Where can you get the tax package you need What date is your 2020 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 Provincial or territorial tax credits Tax treaties Digital services for individuals My Account MyCRA mobile web 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 Non-Residents and Income Tax (2020) T4058 Is this guide for you Before you start Canada's tax system Were you a non-resident in 2020 What are residential ties Do you need help determining your residency status Do you have to file a tax return Deceased persons Which tax package should you use What date is your 2020 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 2020 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 (Step 5 of your return) 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 Quebec Pension Plan (QPP) Eligible educator school supply tax credit Canadian journalism labour tax credit (CJLTC) Balance owing Tax Treaties For more information What if you need help Forms and publications Tax Information Phone Service (TIPS) Contact the Canada Revenue Agency By telephone By mail Northern Residents Deductions for 2020 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? What if the Canada Revenue Agency needs additional information from you? What if your tax return has been selected for review? Have you received additional information after your claim has been reviewed? Frequently asked questions Checklist for Northern Residents Deductions Places of residence Deduction for travel benefits For more information Forms and publications NR4 Non-Resident Tax Withholding, Remitting, and Reporting (2020) T4061 Is this guide for you? Whats new? Cross-border share lending arrangements Advanced life deferred annuity Variable payment life annuities 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 tax accounts Where to send requests 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 Social security benefits Mutual fund investment distributions Interest and dividends Rents, royalties, and franchise payments Miscellaneous payments Appendix C Exemption codes Exemptions applicable to dividends only Exemptions applicable to rents, royalties, and similar payments only Authorization to apply a reduced rate of withholding Exemptions applicable to management or administration fees or charges Exemptions for payments made to non-resident tax-exempt persons Other exemptions 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 Canadian chequing 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 Formal disputes (objections and appeals) Reprisal complaints Report foreign income and other foreign amounts Old Age Security Return of Income Guide for Non-Residents (2020) T4155 Is this guide for you Before you start What is the purpose of filing an 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 2020 Canadian return Completing your Old Age Security Return of Income Identification Email address Terms of use for email notifications Social insurance and other numbers Is this return for a deceased person Marital status Your old age security number Income Line 11300 Old age security (OAS) pension Line 11400 CPP or QPP benefits Line 11500 Other pensions or superannuation Line 12100 Interest and other investment income Interest and dividend income Capital gains Line 12600 Net rental income Line 12900 RRSP Line 13000 Other income Line 13500 Net business income Deductions Line 22100 Carrying charges and interest expenses Line 23200 Other deductions Refund or balance owing Line 23500 Old age security recovery tax Line 43700 Recovery tax withheld Line 48400 Refund Line 48500 Balance owing After sending your return What happens to your return after the CRA receives it How to change a return What should you do if you move Digital services for individuals My Account MyCRA Mobile web app Receiving your CRA mail online For more information What if you need help Service complaints Formal disputes (objections and appeals) Reprisal complaint Contact the CRA By telephone By mail Pension Adjustment Guide (2019) T4084 Before you start Is this guide for you? 1. Tax-assisted retirement savings 1.1 What is a pension adjustment? 2. Glossary Additional voluntary contribution (Cotisations facultatives) Annualized earnings (Gains calculιs sur une annιe) Benefit earned (Prestation acquise) Connected person (Personne rattachιe) Defined benefit limit (Plafond des prestations dιterminιes) Earnings (Gains ouvrant droit ΰ pension) Enhanced CPP or QPP (Prestations amιliorιes du RPC et du RRQ) Forfeited amount (Montant perdu) Government-sponsored retirement arrangement (Mιcanisme de retraite sous rιgime gouvernemental) Member (Participant) Money purchase limit (Plafond des cotisations dιterminιes) Money purchase / Defined contribution provision (Disposition ΰ cotisations dιterminιes) Pension adjustment limits (Limites du facteur d'ιquivalence) Pension adjustment offset (Montant de rιduction du facteur d'ιquivalence) Pension credit (Crιdit de pension) Pension credit formula (Formule du crιdit de pension) Provision (Disposition) Resident compensation (Rιtribution du rιsident) Service (Service) Simplified pension plan (Rιgime de pension simplifiι) Specified retirement arrangement (Mιcanisme de retraite dιterminι) Surplus (Surplus) Vesting, vested (Acquisition, droits acquis) Year's maximum pensionable earnings (Maximum des gains annuels ouvrant droit ΰ pension) 3. Calculating pension credits 3.1 Pension credits 3.2 Types of plans Deferred profit sharing plan Registered pension plan Single-employer plan Multi-employer plan Specified multi-employer plan 4. Calculating pension credits for deferred profit sharing plans 5. Calculating pension credits for single-employer registered pension plans 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 6.1 Money purchase provision 6.2 Defined benefit provision 7. Calculating pension credits for specified multi-employer plans 7.1 Money purchase provision 7.2 Defined benefit provision 8. 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 10. Calculating prescribed amounts for government- sponsored retirement arrangements 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 Reporting a redetermined PA 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 a pension adjustment Help Reporting 12.1 Correcting pension adjustment reporting errors Within the last four years Earlier than the last four years 13. Connected persons joining a registered pension plan 14. Where to get help Registered Plans Directorate By mail By courier Forms and publications Forms Guides Preparing Returns for Deceased Persons 2020 (2020) T4011 Before you start Is this guide for you? Which return should you use? What's new for 2020? 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 their 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 and other information Step 2 Total income Foreign income Amounts an employer pays to the deceased person's estate Lines 10100 to 10400 - Employment income Line 11300 - Old age security pension Line 11400 - CPP or QPP benefits Line 11500 - Other pensions or superannuation Line 11600 - Elected split-pension amount Line 11900 - Employment insurance benefits Line 11905 - Employment insurance maternity and parental benefits and provincial parental insurance plan benefits Lines 12000 and 12100 - Investment income Line 12500 - Registered disability savings plan (RDSP) income Line 12700 - Taxable capital gains Line 12900 - RRSP income Line 13000 - Other income Line 13010 - Scholarships, fellowships, bursaries, and artists project grants Lines 13499 to 14300 - Self-employment income Lines 14400 to 14600 - Other types of income Step 3 Net income Line 20800 - RRSP/PRPP deduction Line 21000 - Deduction for elected split-pension amount Line 22215 - Deduction for CPP or QPP enhanced contributions on employment income Step 4 Taxable income Line 25300 - Net capital losses of other years Step 5 Federal tax Personal amounts (lines 30000 to 30450 and 30500 of the final return) Line 30000 - Basic personal amount Line 30100 - Age amount Line 30300 - Spouse or common-law partner amount Line 30400 - Amount for an eligible dependant Line 30425 Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older Line 30450 - Canada caregiver amount for other infirm dependants age 18 or older Lines 30499 and 30500 Canada caregiver amount for infirm children under 18 years of age Line 30800 - CPP or QPP contributions through employment Line 31260 - Canada employment amount Line 31285 - Home accessibility expenses Line 31350 - Digital news subscription expenses Line 31400 - Pension income amount Line 31600 - Disability amount (for self) Line 31800 - Disability amount transferred from a dependant Line 31900 - Interest paid on your student loans Line 32600 - Amounts transferred from your spouse or common-law partner Line 33099 - Medical expenses for self, spouse or common-law partner, and dependent children born in 2003 or later Line 34900 - Donations and gifts Registered journalism organization (RJO) Step 6 Provincial or territorial tax Step 7 - Refund or balance owing Minimum tax Line 45300 - Canada workers benefit (CWB) Line 45350 - Canada training credit (CTC) Lines 46800 and 46900 - Eligible educator school supply tax credit Line 47555 - Canadian journalism labour tax credit (CJLTC) Signing the return Chapter 3 - Optional returns Signing an optional return What are the 3 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 Complaints and disputes Service-related complaints Formal disputes (objections and appeals) Reprisal complaints Registered Education Savings Plans (2019) RC4092 Is this guide for you? Definitions What is a Registered Education Savings Plan? Specified plan Government Grants Canada Education Savings Grant Canada Learning Bond Quebec Education Savings Incentive (QESI) 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 Example (lifetime limit) 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 Refund of taxes paid on non-qualified or prohibited investments How to claim a refund Obligations of the RESP promoter Changes to the tax treatment of RESPs Tax payable on an advantage Waiver of liability or cancellation Online services For individuals My Account MyCRA mobile web app Receiving your CRA mail online Electronic payments Related forms and publications Forms Information Circular Income Tax Folios For more information What if you need help? Forms and publications Direct deposit Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service-related complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Rental Income (2019) T4036 Is this guide for you? What's new for 2019? New capital cost allowance (CCA) classes: Class 54 (30%) and Class 55 (40%) for business investment in zero-emission vehicles Change in use rules for part of property such as multi-unit residential properties 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 period 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 income Line 8299 Gross rental income Chapter 3 Expenses Current or capital expenses Capital expenses Special situations 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 (not including CCA) Line 9270 Other expenses Expenses you cannot deduct 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 10 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 Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Class 10 (30%) Class 13 Class 16 (40%) Class 31 (5%) and Class 32 (10%) Class 43.1 (30%) Class 43.2 (50%) Class 50 (55%) Class 53 (50%) Class 54 (30%) and Class 55 (40%) Zero-emission vehicles Class 54 (30%) Class 55 (40%) How to calculate your CCA 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 Area B Equipment additions in the year Area C Building additions in the year Area F Land additions and dispositions in the year Column 4 Cost of additions from column 3 which are eligible accelerated investment incentive properties (AIIPs) or zero emission vehicles (ZEVs) Column 5 Proceeds of dispositions in the year Area D Equipment dispositions in the year Area E Building dispositions in the year Area F Land additions and dispositions in the year Column 6 Undepreciated Capital Cost (UCC) after additions and dispositions Column 7 Proceeds of dispositions available to reduce additions of AIIP and ZEV Column 8 Undepreciated capital cost (UCC) for current year additions of AIIP and ZEV Column 9 Adjustment for current year additions subject to the half year rule Column 10 Base amount for CCA Column 11 CCA Rate (%) Column 12 CCA for the year Column 13 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 Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust), and form T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual Did you or your spouse or common-law partner file form T664 or form T664 (Seniors)? Change in use Special situations Online services Handling business taxes online CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing 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-related complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Retirement Compensation Arrangements Guide (2020) 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 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) Completing the T737-RCA Summary, Information Return of Contributions Paid to a Custodian of a Retirement Compensation Arrangement (RCA) Distributing the slips and summary 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 Identification 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) 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) Completing the T4A-RCA Summary, Information Return of Distributions from a Retirement Compensation Arrangement (RCA) Distributing the slips and summary 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 Cancel or waive penalties or interest 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 Complaints and disputes Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates RRSPs and Other Registered Plans for Retirement (2019) 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 2019 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 2019 RRSP deduction limit Contributions you can deduct for 2019 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, PRPP and SPP contributions Lines 7 and 8 Contributions designated as a repayment under the HBP and the LLP Line 14 Transfers Line 15 RRSP, PRPP or SPP contributions you are deducting for 2019 Lines 19 to 22 2019 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 prohibited investments Tax payable on non-qualified investments Refund of taxes paid on non-qualified or prohibited investments How to claim a refund Obligations of the RRSP issuer or RRIF carrier Tax payable on an advantage Waiver of liability or cancellation 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? Where is your PA shown on your T4 or T4A slip? 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 (PRPP) Eligibility Participation Contributions to a PRPP Member contributions Employer contributions Contributions made with 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 Online services for individuals My Account MyCRA mobile web app Receiving your CRA mail online 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-related complaints Formal disputes (objections and appeals) Reprisal complaint Due dates Cancel or waive penalties or interest Scientific Research and Experimental Development (SR&ED) Expenditures Claim (2020) 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 two incentives Filing requirements To expedite the processing of your SR&ED claim SR&ED co-ordinating tax services offices (CTSOs) Classified Projects Provincial and territorial tax incentives How to complete Form T661 Line-by-line explanations Part 1 General information Part 2 Project information Section A Project identification Section B Project descriptions Section C Additional project information Part 3 Calculation of SR&ED expenditures Section A Select the method to calculate the SR&ED expenditures Section B Calculation of allowable SR&ED expenditures Section C Calculation of pool 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 508 increase your qualified SR&ED expenditures for the ITC. Amounts included on lines 513 to 544 decrease your qualified SR&ED expenditures for ITC. Lines 538 to 544 Non-arm's length transactions Part 5 Calculation of prescribed proxy amount (PPA) Section A Salary base Section B Prescribed proxy amount (PPA) Part 6 Project costs Part 7 Additional information Part 8 Claim checklist Part 9 Claim preparer information Part 10 Certification Partnerships Form T661 Line-by-line explanations for partnerships Appendix 1 Field of science or technology codes 1. Natural and formal sciences 2. Engineering and technology 3. Medical and Health sciences 4. Agricultural sciences Appendix 2 Documentation and other evidence to support your SR&ED claim Tax services offices Self-employed Business, Professional, Commission, Farming, and Fishing Income (2019) T4002 Is this guide for you? For farmers For fishers What's new for 2019? New capital cost allowance (CCA) classes: Class 54 (30%) and Class 55 (40%) for business investment in zero-emission vehicles Change in use rules for part of property such as Multi-unit residential properties Definitions Chapter 1 General information A business and business income Gift cards or certificates Farming and fishing income Farming income Fishing income Daycare in your home Reporting income and penalties When you must start reporting income and can start deducting expenses How to report your self-employment 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 Issuing receipts as a daycare provider Expense records Instalment payments Dates to remember Employment insurance (EI) premiums 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) GST/HST rebate for partners Investment tax credit (ITC) Atlantic Investment Tax Credit Scientific research and experimental development (SR&ED) Mineral exploration tax credit (METC) Apprenticeship job creation tax credit (AJCTC) Investment tax credit for child care spaces Chapter 2 Income Sole proprietorships Partnerships How to fill in form T2125, form T2042, or form T2121 Part 1 Identification Industry codes Tax shelter identification number Partnership business number Part 2 Internet business activities Part 3 Income Part 3A Business income Gross sales, commissions, or fees Adjusted gross sales Amount 3G Part 3B Professional income Professional fees Election to exclude your WIP Adjusted professional fees Amount 3O Part 3C Gross business or professional income Line 8000 Adjusted gross sales or adjusted professional fees Line 8290 Reserves deducted last year Line 8230 Other income Line 8299 Gross business or professional income Part 3D Cost of goods sold and gross profit Line 8300 Opening inventory and Line 8500 Closing inventory Inventory value of an artistic endeavour Gifts of inventory by an artist Line 8320 Purchases during the year (net of returns, allowances, and discounts) Line 8340 Direct wage costs Line 8360 Subcontracts Line 8519 Gross profit Lines 9370 to 9378 (inclusive) Cash advances Lines 9421 to 9424 (inclusive) Line 9420 Other crops Line 9425 Greenhouse and nursery products Line 9426 Forage crops or seeds Lines 9471 to 9474 (inclusive) Livestock sold Line 9470 Livestock and animal products revenue Prescribed drought region (PDR) Prescribed flood region (PFR) Income deferral Line 9476 Milk and cream (not including dairy subsidies) and Line 9477 Eggs for consumption Line 9520 Other commodities Program payments Line 9541 Dairy subsidies Line 9542 Crop insurance Line 9540 Other program payments Disaster assistance program payments Destroying livestock Line 9570 Rebates Line 9600 Other income Wood sales (including stumpage) Gifts Payment in kind Surface rental for petroleum or natural gas exploration Rental income Recapture of capital cost allowance (CCA) Miscellaneous Line 9601 Custom or contract work (includes machine rentals) Line 9604 Insurance proceeds Line 9605 Patronage dividends Line 9659 Gross income T4 slip, Statement of Remuneration Paid Fish products Other marine products Subsidies Compensation for loss of fishing income or property Other income Paying debts with part of a catch Sale of property Income from related activities Sharesperson income Line 8299 Gross income Chapter 3 Expenses Current or capital expenses Prepaid expenses Part 4 Net income (loss) before adjustments Line 8521 Advertising Line 8523 Meals and entertainment Meals and entertainment expenses for fishers Line 8590 Bad debts Line 8690 Insurance Insurance expenses for fishers Line 8710 Interest and bank charges Fees, penalties, or bonuses paid for a loan Fees deductible over five years Fees deductible in the year incurred Interest deductible on property no longer used for business purposes Interest on loans made against insurance policies Capitalizing interest Interest related to workspace in your home Line 8760 Business taxes, licences, and memberships Licences (business taxes and memberships) for fishers 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 8910 Rent Line 8960 and Line 8963 Repairs and maintenance Fishing boat Engine Electrical equipment Line 9060 Salaries, wages, and benefits (including employer's contributions) Line 9062 Crew shares Line 9136 Fishing gear Line 9137 Nets and traps Method 1 Capital cost allowance (CCA) method Method 2 Inventory method Line 9138 Salt, bait, and ice Line 9180 Property taxes Line 9200 Travel expenses Line 9220 Utilities Line 9224 Fuel costs (except for motor vehicles) Line 9270 Other expenses Line 9275 Delivery, freight, and express Line 9281 Motor vehicle expenses (not including CCA) Expense lines specific to farming Line 9661 Containers and twine Line 9662 Fertilizers and lime Line 9663 Pesticides (herbicides, insecticides, fungicides) Line 9664 Seeds and plants Line 9711 Feed, supplements, straw, and bedding Line 9712 Livestock purchased Line 9713 Veterinary fees, medicine, and breeding fees Machinery expenses Line 9760 Repairs, licences, and insurance Line 9764 Gasoline, diesel fuel, and oil Line 9790 Other expenses Line 9795 Building repairs and maintenance (includes fence repairs) Line 9796 Clearing, levelling, and draining land Improving land Line 9797 Crop insurance, Revenue Protection Program, and stabilization premiums Line 9798 Custom or contract work (includes machine rentals) Line 9799 Electricity Line 9802 Heating fuel and curing fuel Line 9803 Insurance program overpayment recapture Line 9804 Insurance Line 9805 Interest and bank charges Line 9808 Office expenses Line 9809 Professional fees (includes legal and accounting fees) Line 9810 Property taxes Line 9811 Rent (land, buildings, and pasture) Line 9814 Salaries, wages, and benefits (including employer's contributions) Line 9819 Motor vehicle expenses (not including CCA) Line 9820 Small tools Line 9937 Mandatory inventory adjustment included in 2018 Line 9938 Optional inventory adjustment included in 2018 Fishing expenses Specific information Fishing boat owners Captains of fishing boats Sharespeople Use of a fishing boat mainly for personal use Grants, credits, and rebates GST/HST input tax credits and exempt goods and services Keeping motor vehicle records Simplified logbook for motor vehicle expense provisions What type of vehicle do you own? Deductible expenses Business use of a motor vehicle or passenger vehicle (including zero-emission vehicles and zero-emission passenger vehicles) Joint ownership of a passenger vehicle or a zero-emission passenger vehicle More than one vehicle Interest Leasing costs for a passenger vehicle (or a vehicle that would qualify as a zero-emission passenger vehicle if you owned it) Repayments and imputed interest Line 9790 or 9270 Other expenses Disability-related modifications Payment in kind Leasing costs Convention expenses for business and professional Computer and other equipment leasing costs Allowable reserves Premiums to a private health services plan (PHSP) How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2019 If you had employees throughout 2019 If you had employees for part of the year Undeducted premiums Line 9936 Capital cost allowance (CCA) Line 9898 Total farm expenses Line 9899 or 9369 Net income (loss) before adjustments Inventory adjustments included in 2019 for farmers Line 9941 Optional inventory adjustment included in the current year Line 9942 Mandatory inventory adjustment included in the current year Value of your purchased inventory Part 5 Your net income (loss) Your share of net income (loss) before adjustments Line 9974 GST/HST rebate for partners received in the year Line 9943 Other amounts deductible from your share of net partnership income (loss) Line 9945 Business-use-of-home expenses Line 9946 Your net income (loss) Part 8 Details of other partners Part 9 Details of equity Line 9931 Total business liabilities Line 9932 Drawings in the current year Line 9933 Capital contributions in the current year Chapter 4 Capital cost allowance What is capital cost allowance? Available-for-use rules How much CCA you can claim Basic information about CCA How to calculate your CCA 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 Area B Equipment additions in the year Area C Building additions in the year Land Area F Land additions and dispositions in the year Area G Quota additions and dispositions in the year for farmers Column 4 Cost of additions from column 3 which are eligible accelerated investment incentive properties (AIIPs) or zero-emission vehicles (ZEVs) Column 5 Proceeds of dispositions in the year Area D Equipment dispositions in the year Area E Building dispositions in the year Area F Land additions and dispositions in the year Area G Quota additions and dispositions in the year for farmers Column 6 Undepreciated capital cost (UCC) after additions and dispositions Column 7 Proceeds of dispositions available to reduce additions of AIIP and ZEV Column 8 Undepreciated capital cost (UCC) for current-year additions of AIIP and ZEV Column 9 Adjustment for current year additions subject to the half-year rule Column 10 Base amount for CCA Column 11 CCA Rate (%) Column 12 CCA for the year Column 13 UCC at the end of the year Classes of depreciable property Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Class 10 (30%) Class 10.1 (30%) Class 12 (100%) Class 14 Class 14.1 (5%) Class 16 (40%) Class 29 Class 43 (30%) Class 43.1 (30%) Class 43.2 (50%) Class 45 (45%) Class 46 (30%) Class 50 (55%) Class 52 (100%) Class 53 (50%) Class 54 (30%) and Class 55 (40%) Zero-emission vehicles Class 54 (30%) Class 55 (40%) Special rates for certain fishing boats Special situations Personal use of property Changing from personal to business use Grants, subsidies, and rebates Non-arm's length transaction Capital gains Special rules for disposing of a building in the year Replacement property Chapter 5 Eligible capital expenditures What is an eligible capital expenditure? What is an annual allowance? What is a cumulative eligible capital (CEC) account? Transitional rules Undepreciated capital cost balance Transitional rules Deemed gain immediately before January 1, 2017 Transitional rules Dispositions of former ECP Transitional rules Non-arm's length dispositions of former ECP Chapter 6 Losses Farm losses Non-deductible farm losses Fully deductible farm losses Applying your 2019 farm loss Applying your farm losses from years before 2019 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2019 restricted farm loss Applying your restricted farm losses from years before 2019 Fishing losses Non-capital losses Chapter 7 Capital gains Did you sell in 2019 capital property you owned before 1972? Capital gains for farmers Disposing of farmland that includes your principal residence Restricted farm losses How to calculate your capital gain or loss Qualified farm or fishing property and cumulative capital gains deduction What is qualified farm or fishing property? Cumulative capital gains deduction Real property or property included in Class 14.1 Real property or property included in Class 14.1 bought before June 18, 1987 for farmers 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 Capital cost allowance (CCA) rates How to calculate the mandatory inventory adjustment (MIA) GST/HST for farmers and fishers Appendix Industry codes Professions Services Agricultural or animal services Transportation or storage Communications or utilities Finance, insurance, or real estate Business services Education, health or social services Entertainment or recreation Accommodation, food or beverage services Repairs and maintenance Personal or household services Other services Sales Retailers Household goods stores Food or beverage stores Automotive Other retail stores Direct sales Wholesalers Distributors Construction Manufacturing Natural resource industries Farming industry codes Livestock farm Other animal specialties farm Field-crop farm Fishing industry codes Online services My Account MyCRA mobile web app Receiving your CRA mail online Handling business taxes online CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account MyBenefits CRA Mobile app Electronic payments For more information What if you need help? Direct deposit Forms and publications Electronic mailing lists Teletypewriter (TTY) users Service-related complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Students and Income Tax (11/20) P105 Is this guide for you? What's new? COVID-19 emergency benefits Canada training credit Provincial tuition tax credits Alberta Definitions Designated educational institution Full-time student Part-time student Post-secondary school level Qualifying educational program Specified educational program Chapter 1 - Before you start Do you have to file a return? Which income tax package should you use? How to get the tax guide and forms you need? Social insurance number (SIN) Representatives What should you do if you move? Chapter 2 Filing your return Tax preparation services Online Auto-fill my return What date is your return due? What documents do you include with your return? What records do you keep? Slips Receipts Supporting documents What if you are missing information? When can you expect your refund? How to change a return? Need help doing your taxes? Understanding taxes Chapter 3 - 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 4 Common deductions from income Moving expenses Attendance at a post-secondary educational institution Employment Child care expenses Chapter 5 Non-refundable tax credits Canada employment amount Interest paid on your student loan Tuition amount Eligible tuition fees Examination fees for licensing or certification Amounts that are not eligible tuition fees Education and textbook tax credits Chapter 6 Transfer or carry forward amount Transfer the current year's amount Carry-forward the amount Chapter 7 Refundable tax credits Canada training credit Canada training credit for 2020 Canada training credit limit for 2021 Child and family benefits Other provincial or territorial tax credits References Online Guides Forms Interpretation bulletins Income tax folios Online services Digital services for individuals My Account MyCRA mobile web app Receiving your CRA mail online MyBenefits CRA 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 Complaints and disputes Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Chart to calculate the portion of the award that must be included in income Support Payments (2020) 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 One person paying child support More than one person paying child support Change in 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 Digital services for individuals My Account MyCRA mobile web app Receiving your CRA mail online For more information What if you need help? Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Complaints and disputes Service-related complaints Formal disputes (objections and appeals) Reprisal Complaints T3 Trust Guide 2020 (2020) T4013 Is this guide for you? What's new for 2020 New Trust Account Registration Online Health and Welfare Trusts (HWTs) / Employee Life and Health Trusts (ELHTs) Support for Canadian Journalism Amateur Athlete Trusts Before you start Do you need to read the whole guide? Determine the residence of the trust or estate Non-resident trusts or deemed resident trusts Which tax package should you use? Did you know that? Definitions Chapter 1 General information Types of trusts Testamentary trust Inter vivos trust Code number for the type of trust Testamentary trusts: Inter vivos trusts Who should file Rental income or timber royalty from Canada Trust account number Who can apply for a trust account number? Applying for a trust account number What documents you need to send Production of trust account number Failure to provide the trust account number What to file Form T3-DD, Direct Deposit Request for T3 When to file Tax year-end and fiscal period Graduated Rate Estate All other trusts Deemed year-end rules for all trusts Filing dates Final T3 return How to file the T3 return Filing by Internet file transfer Web access code Eligibility Restrictions Other restrictions Filing on paper If the trust resides in: If the trust resides in: 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 Payment options 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 T3 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 Canadian journalism labour tax credit 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 Affiliated persons Distribution to non-resident beneficiary Trust emigration Trust emigration - information reporting 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 14 Capital gains (losses) from reserves Line 16 Capital gains on gifts of certain capital property eligible for the 0% inclusion rate Line 19 Total capital losses transferred under subsection 164(6) of the Act Line 22 Non-qualified investments for TFSA, RRSP, RRIF, RDSP, and RESP trusts, or disposition of interest in a partnership reported under subsection 100(1.1) of the Act 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 Transfer of trust property to another trust 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 Tax on split income of a minor beneficiary Tax on split income for an adult 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 Trust (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 Trusts other than GREs or QDTs Trusts that are GREs or QDTs 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 T3 Summary How to file the T3 slip and T3 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 T3 slips over the Internet Amending or cancelling T3 slips on paper Adding T3 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 T3 Summary Digital services My Account & MyCRA My Account MyCRA mobile web app Receiving your CRA mail online Submitting and filing documents online related to T3 Documents you can submit online How to submit your document(s) online After you submit your document(s) Supporting 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 Complaints and disputes Service complaints Formal disputes (objections and appeals) Reprisal complaints Index T5007 Guide Return of Benefits (2020) T4115 Confidentiality of information Income Tax Act references Is this guide for you? What's new? Internet file transfer availability Chapter 1 General information T5007 slip T5007 Summary Due date Important information: Electronic filing of information returns 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 CRA BizApp Receiving your CRA mail online Authorizing the withdrawal of a pre-determined amount from your Canadian chequing 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 Complaints and disputes Service complaints Formal disputes (objections and appeals) Reprisal complaints Tax Treatment of Mutual Funds for Individuals (2020) 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? Reporting instructions for T3 slips and T5 slips What if you need help? Forms and publications What To Do Following a Death (2020) 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 their 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 CanadaU.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 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 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 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 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) General 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 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 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 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 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 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 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 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 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 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-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 479R Transactions in Securities (1984/02/2) Guaranteed Capital Gains Disposition of Securities Income or Capital Transactions in More Than One Kind of Security Special Release (1985/02/21) 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-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-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-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 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 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 and cannabis products for medical purposes Cosmetic procedures Fertility-related expenses Receipts Refundable medical expense supplement Interaction with other tax credits Home accessibility tax credit Disability tax credit 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 Supporting individual and child support 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 Qualifying Student and the Education and Textbook Tax Credits Summary Discussion and interpretation General overview Carrying forward or transferring credits Authorized certificate The education and textbook tax credits 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 Obtain skills for an occupation 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 Proof of working towards or improving skills in an occupation Receipt for occupational, trade, or professional examinations Canada training credit Effect on tuition tax credit 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 S1-F3-C3 Support payments Summary Discussion and interpretation General overview Terminology describing the parties and relationship status The concept of a support amount Taxation of support payments Deductibility of support payments Reimbursement of support payments Optional deduction of support payments in the year of a change in marital status Commencement day Orders of a competent tribunal and written agreements Priority of court order over a written agreement Provisions of the Income Tax Act prevail More than one court order or written agreement with a particular recipient Court orders or written agreements with more than one recipient Payments made prior to the date of a court order or agreement Allowance Allowances based on formula Offset against amounts due from recipient Payment of support amounts Payments on a periodic basis Lump-sum payments Discretion as to the use of the amount Special or extraordinary expenses Payments to third parties Payments made to, assigned, or transferred to a provincial authority Payments of income taxes Payments of arrears interest Payments to or from a non-resident Payments made after the death of recipient or payer Payments from pension plans Tax rules for court orders or written agreements made before May 1997 Registering a court order or written agreement Personal tax credits General restriction Exception: Eligible dependant and child tax credits Exception: spouse or common-law partner tax credit Legal and accounting fees Non-deductible legal and accounting fees Deductible legal and accounting fees Child care expenses Application Reference Chapter History Introduction General Legislative and other changes S1-F3-C4 Moving Expenses Summary Discussion and interpretation Eligible relocation Eligible relocation of employees and self-employed individuals Eligible relocation of students Purpose of the move The concept of ordinarily resided The concept of "absent from Canada, but resident in Canada" Conditions for deducting moving expenses Timing of the deduction Eligibility of moving expenses Multiple moves Application Reference Chapter History Introduction General Legislative and other changes S1-F4-C1 Basic Personal and Dependant Tax Credits (for 2016 and prior tax years) Summary Proposed legislative change Discussion and interpretation Calculation of credits Annual indexation Relationships Common terminology for the personal tax credits Basic personal tax credit Spouse or common-law partner tax credit Changes to relationship status Taxable dividends received by a spouse or common-law partner Limitations affecting the spouse or common-law partner tax credit Eligible dependant tax credit Support of an eligible dependant Limitations affecting the eligible dependant tax credit Caregiver tax credit Limitations affecting the caregiver tax credit Infirm dependant tax credit Limitations affecting the infirm dependant tax credit Family caregiver tax credit Limitations affecting the family caregiver tax credit Child tax credit (for years prior to 2015) Non-resident dependants of an individual resident in Canada Indexation adjustments for the personal tax credits Application Reference Chapter History Introduction General Legislative and other changes S1-F4-C2 Basic Personal and Dependant Tax Credits (for 2017 and subsequent tax years) Summary Discussion and interpretation Calculation of credits Annual indexation Relationships Common terminology for the personal tax credits Basic personal tax credit Spouse or common-law partner tax credit Changes to relationship status Taxable dividends received by a spouse or common-law partner Limitations affecting the spouse or common-law partner tax credit Eligible dependant tax credit Support of an eligible dependant Limitations affecting the eligible dependant tax credit Canada caregiver tax credit (adult) Limitations affecting the Canada caregiver tax credit (adult) Canada caregiver tax credit (child) Limitations affecting the Canada caregiver tax credit (child) Non-resident dependants of an individual resident in Canada 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 |