 Guide to Preparing 2022 Personal Tax Returns
What's new for 2022? Personal tax calendar (2023) Personal tax rates and tools Calculators Personal tax calculator RRSP savings calculator RRSP catch-up loans calculator Date calculators Reference tools Capital cost allowance Capital cost allowance rates (by class) Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class 8 Class 9 Class 10 Class 10.1 Class 11 Class 12 Class 13 Class 14 Class 14.1 Class 15 Class 16 Class 17 Class 18 Class 19 Class 20 Class 21 Class 22 Class 23 Class 24 Class 25 Class 26 Class 27 Class 28 Class 29 Class 30 Class 31 Class 32 Class 33 Class 34 Class 35 Class 36 Class 37 Class 38 Class 39 Class 40 Class 41 Class 41.1 Class 41.2 Class 42 Class 43 Class 43.1 Class 43.2 Class 44 Class 45 Class 46 Class 47 Class 48 Class 49 Class 50 Class 51 Class 52 Class 53 Class 54 Class 55 Class 56 Class 57 Class 58 Class 59 Class 60 Capital cost allowance rates (by item) A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Income tax returns, due dates, and taxation years for individuals Medical expense tax credit – Allowable medical expenses Penalties and offences Status of international tax treaty negotiations I. In force (94) II. Signed but not yet in force (3) III. Under negotiation/re-negotiation (8) Tax on split income – CRA rulings and interpretations by topic Tax on split income – Exclusions Tuition tax credit – Eligible and non-eligible fees Who must file a return? Tax rates and amounts Automobile deduction limit and expense benefit rates Canada workers benefit – Indexed amounts Capital gains and losses Inclusion rates Lifetime capital gains exemption (LCGE) limit for qualified property CPP–QPP payment rates Employment insurance premiums and Quebec parental insurance premiums 2022-2023 2017-2021 Foreign exchange rates GST/HST rebate rates for HST participating provinces Maximum personal marginal income tax rates Non-refundable credits – Maximum combined federal and provincial value OAS, GIS and SPA payments 2023 2022 Personal income tax brackets and rates Personal income tax credits, benefits, and other amounts – Indexed amounts Personal income tax rates and credits – Combined Prescribed interest rates Alberta Federal Late tax, refunds, benefits, and PLOI [Reg. 4301] Leasing rules [Reg. 4302] 2014–2023 1994–2003 Ontario Quebec Probate fees RPPs, RRSPs, DPSPs, and TFSAs – Annual limits Treaty withholding tax rates – Dividends, interest, royalties, and trust and estate income Treaty withholding tax rates – Pension and annuities US foreign earned income and foreign housing exclusions US personal federal income tax rates for ordinary income US social security and medicare taxes Filing tips for 2022 personal tax returns File on time Review prior-year return Capital losses COVID-19 relief benefits Deduction for repayment of COVID-19 relief benefits Pension income splitting Charitable donations Interest expense Medical expenses Child care expenses Home office expenses Claim all available credits Consider deferring deductions Business owners Old receipts Moving Filing returns for children Home purchasers Remember the foreign reporting requirement Before filing the return Chapter 1 – The T1 return – Getting started What's new for 2022? Introduction Who must file a T1 return? Goods and services tax/harmonized sales tax (GST/HST) credit Applying for the Canada child benefit (CCB) Climate action incentive What's new for 2022? Who is liable to tax? Concepts of tax residency for individuals Factual residents Factors applied by the courts to determine residence status Factors applied by the CRA to determine residence status Significant residential ties Secondary residential ties Other factors Residency determination by the CRA Taxation of factual residents Deemed residents Statutory rules Sojourners Other deemed residents Taxation of deemed residents Part-year residents Taxation of part-year residents Exempt residents Non-resident individuals Part I tax Part XIII tax (non-resident tax) Which returns are required and when are they due? Return of income Information returns Taxation year Which tax and benefit package should an individual use? T1 General Income Tax and Benefit Return Adjusting a T1 return (Form T1-ADJ) T1 General Income Tax and Benefit Return for Non-Residents and Deemed Residents Non-residents – Old age security clawback Non-residents – Elective returns Adjusting a T1 return (Form T1-ADJ) Summary tables – Who must file the return (for residents, and non-residents and deemed residents) Due dates Due dates that fall on holidays Due dates for elective returns for non-residents Section 216 election Section 216.1 election Section 217 election Reduction of non-resident withholding taxes Due dates for deceased individuals Optional returns Due dates for other elections Summary of income tax returns, due dates, and taxation years How and where to file Electronic filing Returns filed electronically – Deemed date of receipt What is electronic filing? Methods available Advantages of electronic filing EFILE Restrictions Requirement to EFILE for tax preparers Adjusting T1 returns using ReFILE NETFILE Restrictions How to NETFILE Adjusting T1 returns using ReFILE Auto-fill My Return Supporting documents Payment of balance due Mailing or delivery of a T1 paper return Returns filed by mail – Deemed date of receipt Returns delivered to the CRA – Date of receipt Payments by mail – Deemed date of receipt Paper returns – Addresses for filing and making instalments Chapter 2 – Total income Overview Amounts not taxed What's new for 2022? Amounts exempt by statute Application of the guidelines in the context of COVID-19 COVID-19 recovery benefits Social assistance payments Payments under formal care programs (including foster care) Payments under informal care programs (kinship care) Damages for personal injury or death Amounts related to military service or wartime Expense allowances, travel allowances, and volunteer service payments COVID-19-related payments and other special payments Payments in the 2022 taxation year Payments in the 2021 taxation year Payments in the 2020 taxation year Annotations Employment income Line 10100 – Employment income What's new for 2022? What to include on Lines 10100, 10105, 10120, and 10130 Exemptions from employment income Volunteer firefighters and search and rescue workers Employment-related benefits and allowances Automobiles Employee's own vehicle – Automobile allowance provided by employer Employee's own vehicle – No allowance provided by employer Employer-provided automobile – Standby charge Employer-provided automobile – Operating expense benefit Vehicle commuting costs during the COVID-19 pandemic Aircraft Commuting costs during the COVID-19 pandemic Board and lodging Employment at a special (temporary) work site or remote location Employee discounts Low-interest or interest-free loans Home purchase or home relocation loans Housing subsidies other than housing loans Security option benefits Security options granted by a non-CCPC Security options granted by a CCPC Change in the corporation's status Cashout of security options Moving expense reimbursements General rule Housing loss Cellphones, computers, and related services Device costs Cellphone and internet service plans and related services Bring your own device arrangements Home office equipment reimbursement – COVID-19 Salary deferral arrangements Tax consequences Deferred salary leave plan maximum deferral period and minimum leave period Employment expenses Reporting Non-residents Canadian-source employment income Annotations Line 10400 – Other employment income Net research grants Eligible expenditures Research assistants Capital expenditures Personal and living expenses Travel costs Documentation Foreign employment income Determination of foreign-source employment income Employer reimbursement of temporary living costs GST/HST and QST rebates Non-residents Annotations Investment income Line 12000 – Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations Eligible dividends Gross-up amount Integration mechanism Documentation Acceptable notification and documentation of eligible dividends Split income Dividends received by a spouse or common-law partner Carrying charges and interest Non-Residents Annotations Line 12100 – Interest and other investment income Foreign-source investment income Offshore investment fund property and foreign investment entities Interest income – Accrual rules Bank accounts Term deposits, guaranteed income certificates (GICs), and similar investments Canada Savings Bonds Treasury bills (T-bills) Mutual funds Segregated fund investments Income trusts and real estate investment trusts Earnings on life insurance policies Split income Shareholder debt Derivative forward agreements Derivatives – Mark-to-market election Sales of linked notes Carrying charges and interest Documentation Non-residents Annotations Line 12200 – Net partnership income: limited or non-active partners only Tax shelters Carrying charges and interest Non-residents Annotations Capital gains (Line 12700) What's new for 2022? Overview Capital gains, losses, and property Historical perspective Transitional rules Capital gain and capital loss Capital property Income versus capital determination Exclusions from capital gain and capital loss Residential property flipping rules Inclusions in capital gain and capital loss Capital gains and losses in respect of foreign currency Disposition of Canadian securities Deduction from business investment loss Recovery of bad debts related to previous dispositions of eligible capital property Repayment of government and other financial assistance Taxable capital gains and allowable capital losses Dispositions Specific inclusions Specific exclusions Transfers of property that do not result in a change in beneficial ownership Transfers of property between trusts Certain payments in respect of a capital interest in a trust Transfers of property for securing a debt or loan Transfers of property to a trust to effect payment under a debt or loan Partitions of jointly owned property Date of disposition Deemed dispositions Death Remainder interests in real property Immigration Emigration Bad debt Shares of a bankrupt corporation Dispositions subject to warranty, covenant, or other contingent obligation When a small business corporation becomes public Granting or expiry of an option Gifts of capital property Change in use Synthetic dispositions Deemed gain – Negative adjusted cost base General rule Deemed gain for limited and non-active partners Destruction, loss, or expropriation of property Changes in terms of securities Debt securities Equity securities Computation of capital gains and losses Proceeds of disposition General definition Specific exclusions from proceeds of disposition Gifts, inadequate consideration, and excessive consideration Distribution by a personal trust Adjusted cost base General definition Property on hand – December 31, 1971 Valuation dates and V-day values Neutral or tax-free zone Laid-down costs Incidental or additional costs Cost of property for which 1994 capital gains exemption election was made Cost of certain properties Dividends in kind Stock dividends Other special rules Adjustments in determining ACB Additions and deductions to ACB of non-depreciable property General additions Additions relating to shares of a corporation Additions relating to units or interests in a trust General deductions Deductions relating to shares of a corporation Deductions relating to units or interests in a trust ACB of an interest in a partnership ACB of identical properties General rule Bonds, debentures, bills, notes, or similar obligations Property before and after valuation day Costs of disposition Capital gains and losses – Special rules Personal-use property Definition General rules Rules applicable to part dispositions Sets Debts Listed personal property Net gain and listed personal property losses Principal residence Ceasing to be resident in Canada Depreciable property Dispositions – Land and building Eligible capital property Post-2016 dispositions of former eligible capital property Foreign property Security option shares or units – Identical property Charitable gifts of capital property Publicly listed securities Flow-through shares Options to acquire property Exercising an option Extension or renewal of an option Sale of option to third party Restrictive covenants Wins and losses on lotteries Election on disposition of Canadian securities Tax on split income Loss denials and limitations Lottery losses or gains Superficial loss Superficial loss defined Identical properties Exceptions to the superficial loss rules Allocation of disallowed loss Pro rata denial of loss Loss on share redemption Loss on the disposition of shares of certain corporations Loss on shares where dividends were received Loss on shares held by an individual Loss on shares held by an individual's estate Loss on shares held by an individual who emigrates from Canada Loss on personal-use property Loss on transfer to a deferred income plan Loss on transfer of debt to a related person Loss on debt settlement Loss on the disposition of debt for non-income-producing purposes Principal residence exemption Principal residence defined Land as part of the principal residence Ownership Ordinarily inhabited Designation by an individual Making the designation Capital gains reduction – Principal residence exemption Pre-1982 properties and alternative calculation Reduction for previously claimed capital gains exemption Change in use Residential to rental Rental to residential Partial changes in use Disposition of part of a principal residence Farm property Principal residence exemption for a non-resident Capital gains exemption Overview Calculating entitlement to the capital gains exemption Part-year residents Qualified property Qualified small business corporation shares Small business corporation test Holding-period test Active business asset test and stacking rules Connected corporations Special rules – Related persons and partnerships Special rules – Value of corporate-owned life insurance policies Special rules – Identical shares Small business corporations going public Purification techniques Qualified farm or fishing property Transferring qualified farm or fishing property to a child Capital gains deduction – Limitation of claim Unused lifetime exemption limit Annual gains limit Cumulative gains limit Cumulative net investment loss Allowable business investment loss Alternative minimum tax Failure to report gain Capital gains deduction and tax on split income Anti-avoidance rules Corporate reorganizations Gain attributable to insufficient dividends Disproportionate allocation or distribution of gains Trusts and partnerships Designation to beneficiaries of trusts Deduction available to certain spousal trusts for taxation years prior to 2016 Flow-through to partners of partnerships Capital gains deferrals Capital gains deferral for investment in small business Overview Capital gains deferral – General rule Qualifying disposition Eligible small business corporation shares Active business corporation Excluded corporations Eligible reinvestment Calculating the capital gains deferral Adjusted cost base reduction Replacement property rules Involuntary dispositions Voluntary dispositions Replacement property Deferring the gain Election Capital gains reserves Overview Where the reserve is not available Promissory notes Reserves on foreign property Reserve for a gift of a non-qualifying security Earnout arrangements Convertible property Convertible securities Convertible debt Transfer of farm or fishing property to a child or grandchild Used principally in the business of farming or fishing Deferral Similar intergenerational rollovers Transfer of farm or fishing property to a parent Property transferred between spouses or common-law partners Rollovers and reorganizations Qualifying dispositions to a trust Qualifying exchanges for mutual funds Qualifying transfers for segregated funds Transfer of capital property to a corporation or partnership Share-for-share exchange Amalgamation Non-residents Tax payable by non-residents Dispositions of taxable Canadian property Taxable Canadian property defined Real or immovable property situated in Canada Property used in carrying on a business in Canada Shares of a corporation Interests in a partnership Interests in a trust Interests and options Other taxable Canadian property Compliance requirements Section 116 filing requirement Obligations of the non-resident vendor Obligations of the purchaser Application for clearance certificate for other property Gifts of property by a non-resident person Processing time Penalties for not filing Quebec clearance certificate Requirement to file a Canadian T1 return Treaty relief Dispositions of treaty-protected property Annotations Rental income (Line 12600) Income from a business or income from property? Extent of additional services provided Management and supervision of rental properties Incidental business Rental operations owned by a partnership Reporting Calculation of gross rental income Accrual or cash method? Rents received in advance Payment of rent in kind Other related income Rental expenses Current versus capital expenditures Capital expenses Landscaping costs Alterations to rental property to assist a person with a disability Devices and equipment to assist a person with a disability Current expenses Advertising Insurance Interest and financing fees Legal, accounting, and other professional fees Management and administration fees Motor vehicle expenses Office expenses Property taxes Repairs and maintenance Salaries, wages, and benefits Travel Utilities Other expenses Landscaping costs Undeveloped land Lease cancellation payments Leasehold inducements Condominiums and condominium fees Non-deductible expenses Capital cost allowance Purpose Reporting CCA rules and restrictions Rental building costing $50,000 or more Changing from personal to rental use Grants, subsidies, and other incentives or inducements Non-arm's length transactions Selling the rental property Replacement property Rental losses Special situations Principal residence Renting below fair market value Farmland rental by individuals Surface rental by farmers Non-residents Rental property outside Canada Annotations Business and professional income (Lines 13500–14300) What's new for 2022? Overview Taxation of business and professional income Classification of income by source Business income versus property income What is a business? What is a property? Distinguishing between business and property income Business income (self-employment income) versus employment income Wiebe Door test Evidence of relationship Specific income tax consequences arising from the classification Deductible expenses Business income versus capital gain What is profit? Timing of deduction Timing of income recognition Accrual basis or cash basis? Business income – Inclusions Gross sales and professional fees Amounts received Election to transfer customer deposit to purchaser under asset sale Amounts receivable Work in progress Other income Payments based on production or use Damages for breach of contract Damages for loss of business income Insurance proceeds expended Inducement payments, reimbursements, and other amounts Types of reimbursements, inducements, and similar amounts COVID-19-related government assistance Timing of receipt Restrictive covenants Investment tax credits Gain on settlement of debt Provisions or reserves from previous years Income in special situations Sales made with a right of return Residential property flipping Construction contract income Accounting treatment of contract revenue Tax treatment of contract revenue Progress method of revenue recognition Fixed-total-price contracts Cost of goods sold Meaning of inventory Inventory valuation methods What is cost? Overhead allocation Depreciation in inventory What is fair market value? Change in inventory valuation method Inventory valuation for adventures in the nature of trade Parts or supplies Inventory obsolescence reserves Artists Work in progress of a professional Non-residents Derivative instruments Business income – Deductions Deductibility of an expense General limitations 1. The expense must be incurred to earn business income 2. The expense must not be on capital account 3. The expense cannot be a personal or living expense 4. The expense must be reasonable in the circumstances 5. The expense cannot be part of a transaction to which GAAR applies Specific limitations Payments under different acts Political contributions Prepaid expenses Recreational facilities and club dues Recreational property and facilities Club dues Safety deposit box fees Straddle transactions Expenses deductible on Form T2125 Advertising expenses Newspapers Periodicals Broadcasting Online Meals and entertainment Exceptions Conferences and conventions Amounts included in air, train, or bus fares Entertainment expenses at golf clubs Long-haul truck drivers Bad debts Assessing collectibility Interest Interest paid or payable Reasonable rate of interest Funds used Reasonable expectation of income Mortgage interest and home offices Interest deemed paid Financing fees Motor vehicle expenses Definitions of passenger vehicle and automobile Deductible motor vehicle expenses Zero-emission vehicles Maximum capital cost allowance on purchased vehicles Maximum deduction for leased vehicles Interest expense Mileage allowances Capital cost allowance Class 14.1 property Private health services plan premiums Conditions for deduction Amount of deduction Other expenses Conventions Disability-related modifications to buildings Disability-related equipment Landscaping Site investigation Utilities service connection Reserves Reserves for goods or services to be provided after year-end Warranty reserves Food, drink, or transportation reserves Prepaid rent reserves Returnable container reserves Reserves for amounts due from the sale of property Doubtful debt reserves Workspace at home Workspace at home during the COVID-19 pandemic Limitation Carryforward of expenses Business losses Internet business activities Selection of business year-end Taxation of farming and fishing income Non-residents Carrying on business in Canada Non-resident actors Annotations Capital cost allowance What's new for 2022? Overview Purpose Application Current versus capital expenditures CRA's administrative guidelines Asset capitalization threshold Summary Capital cost allowance (CCA) system Post-2016 rules for eligible capital property Mechanics Eligible depreciable property Listed in a class Ownership Property held by a partnership Available for use Buildings Other properties (including leaseholds) Election for long-term projects Non-arm's length transfers Anti-avoidance rule Exceptions Costs otherwise deductible Specifically disallowed depreciable property Calculation of CCA Formulas Declining-balance classes Other classes Additional allowances – Transitional measures for Class 14.1 Additional allowances Acceleration of CCA for eligible property Accelerated investment incentive property Accelerated investment incentive property acquired in the year Full expensing of M&P machinery and equipment Full expensing of clean energy equipment Accelerated investment incentive Zero-emission vehicles Temporary immediate expensing incentive Overview Eligible person or partnership Immediate expensing property Designated immediate expensing property Application of the immediate expensing incentive Immediate expensing limit General restrictions Half-year rule Exceptions to the half-year rule – Excluded assets Exceptions to the half-year rule – Non-arm's length transactions Short taxation years Separate classes for similar properties Capital cost Meaning of capital cost Special rules Apportionment of cost Cost incurred in foreign currency Property manufactured or produced for own use Deemed capital cost and adjustments to capital cost Property with a dual purpose Change in use of assets Business-use property converted into non-business-use property Non-business-use property converted into business-use property Election not to apply the change-in-use rules Property with change in relative use Property with a change in use from one income-producing purpose to another Non-arm's length transfers Where vendor is a Canadian-resident individual or partnership Where vendor is a corporation or non-resident Eligible capital property – Additional relief for Class 14.1 Potential recapture Death of an individual Passenger vehicles Grant, subsidy, credit, inducement, or other assistance Government assistance Investment tax credit Debt forgiveness GST/HST credits and rebates on depreciable property QST credits on depreciable property Other inducements or reimbursements Townsite costs related to a mine and payments for other prescribed property Trade-ins Gift or bequest Building under construction, renovation, or alteration Election to capitalize borrowing costs Undepreciated capital cost Meaning of undepreciated capital cost Cumulative account Resulting UCC balance UCC balance of Class 14.1 Allocation of total capital cost between properties Opening UCC and amount deemed allowed as CCA Taxation years straddling January 1, 2017 Disposition Meaning of disposition Meaning of proceeds of disposition Involuntary dispositions – Time of disposition and receipt of proceeds Disposition of ECP before March 22, 2016 – Payments received after 2016 Recapture and terminal loss Recapture Temporary negative UCC balance Disposition of eligible capital property on or after January 1, 2017 Acquisition of former eligible capital property from non-arm's length person Replacement property rules Recapture deferral calculation Limited-period franchises, concessions, or licences Terminal loss Depreciable property of a discontinued business Passenger vehicles costing more than the prescribed amount Zero-emission passenger vehicles costing more than the prescribed amount Former business property of another person Class 14.1 asset Transfer of depreciable property from one class to another Disposition of depreciable and non-depreciable property Disposal of land and building in the same year Cost amount Disposal of land and building in different years Suspended loss rules Affiliated persons Application of rules to transferor Triggering events Application of rules to transferee Excluded dispositions Goodwill Rules as of January 1, 2017 Acquisitions and dispositions of goodwill Deemed goodwill – Outlays not relating to property Capital receipts not relating to property Bad debts arising from dispositions of depreciable property Specific CCA restrictions Luxury automobiles Operation of the CCA restriction Definition of passenger vehicle Separate classes, recapture, and terminal loss Transfer of vehicle to non-arm's length parties Joint ownership arrangements Zero-emission passenger vehicles and certain passenger vehicles costing more than the prescribed amount Joint ownership arrangements Rental properties Operation of the CCA restriction Definition of rental property Expanded definition of rent Leasing properties Operation of the CCA restriction Definition of leasing property Expanded definition of rent Separate class required Specified leasing properties Definition of specified leasing property Expanded definition of rent Separate class required Operation of the CCA restriction Available-for-use rule Anti-avoidance rules Special rules Acquisitions of specified leasing property Other rules Computer tax-shelter properties Definition of computer tax-shelter property Operation of the CCA restriction Separate class required Specified energy properties Definition of specified energy property Exception – Non-arm's length acquisitions Exception – Replacement property Operation of the CCA restriction Separate class required Special CCA rules for lessees Election to capitalize leased property Application of rules Acquisition of leased property Lease-option agreements CCA classes Additions and alterations Non-arm's length transfers Separate classes General rule – Separate businesses Separate class rules Rental property costing less than $50,000 Rental property costing $50,000 or more Multiple-unit residential buildings Passenger vehicles Limited-period franchise, concession, or licence Other assets Separate class elections Outdoor advertising sign Rapidly depreciating electronic equipment Manufacturing or processing property Class 43.1 and 43.2 M&P property Non-residential buildings Transfers between classes Calculation Elections Election to include properties in Class 1 Election to include properties in Class 2, Class 4, or Class 17 Election to include properties in Class 8 Election to include properties in Class 37 Election to make certain transfers – Acquisitions made before or after May 26, 1976 Election to make certain transfers – General rule Election to include properties in Class 1, Class 3, or Class 6 Election not to include properties in Class 44 Election to include properties in Class 35 Election not to include properties in Class 54, Class 55, or Class 56 Five-year rule for Class 8 or Class 43 separate class elections Misclassified properties Annotations Pension and other income Line 11300 – Old age security (OAS) pension Non-residents Annotations Line 11400 – CPP or QPP benefits Retirement pension Disability benefits Survivor benefits Post-retirement benefit Non-residents Annotations Line 11500 – Other pensions or superannuation Superannuation or pension benefits RPPs RRIFs, PRPPs, and annuities Saskatchewan pension plan Foreign Pensions US IRAs and Roth IRAs US social security Non-residents Annotations Line 11600 – Elected split-pension amount What's new for 2022? Election to split pension income Benefits of pension splitting Annotations Line 11700 – Universal child care benefit What's new for 2022? Overview of the UCCB Eligibility for UCCB Eligible individual Eligible child Inclusion in income – Who must report the UCCB? Two-parent families Single-parent families Repayment of UCCB UCCB amounts for previous years Exclusion of UCCB from the calculation of certain income bases Attribution rules Administration Non-residents Annotations Line 11900 – Employment insurance and other benefits Lump-sum payment Quebec parental insurance plan Extension of EI special benefits to self-employed individuals Non-residents Annotations Line 12500 – Registered disability savings plan income Contributions RDSP payments Specified disability savings plan Impact of cessation of disability tax credit eligibility Non-residents Annotations Line 12800 – Support payments received Child support amount Tax treatment Support amount Allowance Periodic basis Tax treatment Non-residents Annotations Line 12900 – RRSP income Additional amounts included on Line 12900 Spousal or common-law partner RRSP Home buyers' plan and lifelong learning plan Non-residents Annotations Line 13000 – Other income What's new for 2022? COVID-19 financial assistance payments Apprenticeship incentive grants Death benefits CPP or QPP death benefits Federal income support grant for parents of young victims of crime Lump-sum payments received in lieu of health or dental coverage Registered disability savings plan payments Registered education savings plan payments Educational assistance payments Accumulated income payments Retirement compensation arrangements Retiring allowances Restrictive covenants Tax-free savings account payments Tax informant program payments Non-residents Annotations Line 13010 – Taxable scholarships, fellowships, bursaries, and artists' project grants Awards Award versus employment income Scholarships provided to employees' dependants Fellowships versus research grants Post-graduate educational fellowships Post-doctoral fellowships Art production grants Prizes Prescribed prizes Scholarship exemption Limitations of scholarship exemption Exemption amount Restriction for part-time courses Reporting Non-residents Annotations Lines 14400 to 14700 – Other benefits (workers' compensation, social assistance, net federal supplements) Non-residents Annotations Chapter 3 – Net income deductions Overview Employment income deductions Deductibility Expense amount Line 20600 – Pension adjustment Annotations Line 20700 – Registered pension plan (RPP) deduction Defined benefit plans Money purchase plans Foreign employer-provided retirement plans Non-residents Annotations Line 21200 – Annual union, professional, or like dues Restrictions on deductibility of dues Non-residents Annotations Line 22900 – Other employment expenses What's new for 2022? Sales expenses Capital cost allowance Expense claims by commissioned employees Certificate from employer Alternative claim under provisions for salaried employees Travel and lodging expenses Construction tradespeople Eligible tradesperson Temporary relocation Eligible expenses Maximum deduction Railway employees Relief telegraphers, station agents, and maintenance and repair employees All other railway company employees Calculation of deduction Limitation on meals expense deduction Lodging Certificate from employer Transport employees Calculation of deduction Certificate from employer Travel expenses Condition 1 Condition 2 Condition 3 Reasonable allowance Meal expenses Certificate from employer Motor vehicle travel expenses Types of motor vehicle expenses Deductible portion of expenses Certificate from employer Motor vehicle and aircraft finance costs Capital cost allowance Motor vehicles Aircraft Aircraft costs – Reasonableness test Employee plans and arrangements Teachers' exchange fund contributions CPP, EI, and QPIP contributions Employee retirement compensation arrangement contributions Additional conditions for deduction of RCA contributions Salary reimbursement Reimbursement of disability payments Salary deferral arrangements – Forfeited amounts Employee profit-sharing plans – Forfeited amounts Employee profit-sharing plans – Excess EPSP amounts Artists' expenses Musical instrument costs Capital cost allowance Artists' employment expenses Artistic activity Calculation of available deduction Alternative claim under other paragraphs of section 8 Other expenses Office expenses and salary of an assistant or substitute Office rent Supplies Certificate from employer Home office expenses Temporary flat-rate method Detailed method Reimbursement of office equipment costs from 2020 to 2022 Certificate from employer Legal expenses of employee Tradespeople's tool expenses Apprentice mechanics' tool costs Eligible apprentice mechanic Eligible tools Amount of deduction for cost of tools Non-residents Annotations Line 23100 – Clergy residence deduction Amount of the deduction Rent-free accommodation Residence owned or rented Restriction on deduction Documentation Non-residents Annotations Property income deductions and business investment loss Line 21700 – Business investment loss Elected deemed disposition Small business corporation Capital loss Deduction Tax shelters Non-residents Annotations Line 22100 – Carrying charges and interest expenses Carrying charges Interest expenses Interest expense planning Non-residents Annotations Line 22400 – Exploration and development expenses What's new for 2022? Canadian expenses Canadian exploration expenses (CEE) Canadian development expenses (CDE) Canadian oil and gas property expenses (COGPE) Oil sands expenses Flow-through shares Foreign expenses Foreign exploration and development expenses Limited partners Non-residents Annotations Child care expenses, moving expenses, and other deductions Line 20800 – RRSP deduction What's new for 2022? Overview of registered retirement savings plans Amounts deductible on Line 20800 Contribution deadline and carryforward of undeducted contributions RRSP deduction limit for 2022 Unused RRSP deduction room Carryforward of undeducted RRSP contributions Additional RRSP contributions Retiring allowances Lump-sum receipts Home buyers' plan and lifelong learning plan Documentation Non-residents Annotations Line 20810 – Pooled registered pension plan (PRPP) employer contributions Annotations Line 21000 – Deduction for elected split-pension amount What's new for 2022? Election to split pension income Annotations Line 21300 – Universal child care benefit repayment What's new for 2022? Annotations Line 21400 – Child care expenses Who may claim? Qualifying child care expenses Deduction limits Deduction claimed by the person with the higher net income Deduction claimed by a student Boarding school or camp Documentation Social insurance number Interaction with other deductions or credits Business expenses deduction Disability tax credit Medical expenses tax credit Non-residents Annotations Line 21500 – Disability supports deduction Who may claim? Eligibility conditions Eligible disability supports expenses Deduction limits Interaction with other deductions or credits Non-residents Annotations Line 21900 – Moving expenses Deduction limits Eligible moving expenses Non-residents Annotations Line 22000 – Support payments made Child support amount Tax treatment Support amount Allowance Periodic basis Tax treatment Documentation Non-residents Annotations Line 22200 – Deduction for CPP or QPP contributions on self-employment income and other earnings What's new for 2022? Maximum contributions Deduction Optional CPP or QPP contributions Non-residents Annotations Line 22215 – Deduction for CPP or QPP enhanced contributions on employment income What's new for 2022? Optional contributions Non-residents Annotations Line 22300 – Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income What's new for 2022? Who may deduct an amount on Line 22300? Maximum claimable Calculation of self-employed individual's QPIP premiums Non-residents Annotations Line 23200 – Other deductions What's new for 2022? Split income Refund of RRSP premiums Death benefit under an ALDA Transfer of RRSP refund of premiums to RRIF or annuity Conversion of RRIF to a life annuity Transfer of amounts relating to a deceased individual to an RDSP Refund of undeducted RRSP contributions Withdrawal of excess transfers from RPP to RRSP, RRIF, PRPP, or SPP Repayment of amounts paid out of RPP in error Decrease in value of unmatured RRSP, PRPP, or RRIF after date of death Depletion allowances Reimbursements of amounts overpaid Repayment of federal COVID-19 benefit amounts (Line 23210) Legal fees Repayment of shareholder loans Deduction for foreign taxes on income from property (other than real property) Deduction for foreign non-business income tax Non-residents Annotations Line 23210 – Federal COVID-19 benefits repayment Annotations Line 23500 – Social benefits repayment What's new for 2022? Employment insurance benefits Old age security benefits Non-residents Old age security benefits Annotations Net income Line 23600 – Net income Non-residents Annotations Chapter 4 – Taxable income Overview Order of applying provisions Retroactive lump-sum payments Losses of other years Line 25100 – Limited partnership losses of other years Documentation Non-residents Annotations Line 25200 – Non-capital losses of other years Farm losses Restricted farm loss Debt forgiveness rules Non-residents Annotations Line 25300 – Net capital losses of other years Net capital loss Applying the losses Non-residents Annotations Capital gains deduction Line 25400 – Capital gains deduction Calculation of the capital gains deduction Non-residents Annotations Security options and other deductions Line 24400 – Canadian Forces personnel and police deduction Deduction limit Administration Non-residents Annotations Line 24900 – Security options deductions Securities other than non-qualified securities Annual vesting limit Underwater options Cashout of security options Deferral of the security options benefits (before 4:00 p.m. EST, March 4, 2010) Donation of securities acquired under a security option plan Other deductions Non-residents Annotations Line 25000 – Other payments deduction Limits Non-residents Annotations Line 25500 – Northern residents deductions Travel benefit deduction Residency deduction Non-residents Annotations Line 25600 – Additional deductions Income exempt under a tax treaty Vow of perpetual poverty Adult basic education and other tuition assistance Employees of prescribed international organizations Annotations Chapter 5 – Federal non-refundable tax credits Overview Claiming order Transfer of credits Applicable rate Indexation Provincial and territorial equivalents Non-residents Part-year residents Non-residents (including non-residents electing under section 216.1) Non-resident electing under section 217 Personal amounts and adoption expenses Line 30000 – Basic personal amount What's new for 2022? Indexation Non-residents Annotations Line 30100 – Age amount What's new for 2022? Eligibility Indexation Non-residents Annotations Line 30300 – Spouse or common-law partner amount What's new for 2022? Common-law partnership Same-sex couples Limitations Election to transfer dividend income to spouse Canada caregiver amount Indexation Transfer of credits Documentation Non-residents Annotations Line 30400 – Amount for an eligible dependant What's new for 2022? Limitations Eligible dependant Conditions for application Canada caregiver amount Indexation Documentation Non-residents Annotations Line 30425 – Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older What's new for 2022? Calculating the Canada caregiver amount Higher amount Lower amount Top-up amount Limitations Indexation Documentation Non-residents Annotations Line 30450 – Canada caregiver amount for other infirm dependants age 18 or older What's new for 2022? Dependant Limitations Indexation Documentation Non-residents Annotations Line 30500 – Canada caregiver amount for infirm children under 18 years of age What's new for 2022? Who may claim? Where child resides together with parents Where child does not reside together with more than one parent Limitations Documentation to claim the credit Indexation Transfer of the amount Non-residents Annotations Line 31300 – Adoption expenses What's new for 2022? Who may claim? When to claim? Eligible adoption expenses Deduction limits Indexation Documentation Non-residents Annotations Disability amounts Line 31600 – Disability amount for self What's new for 2022? Eligibility requirements Prolonged impairment Marked restriction Equivalent to marked restriction Basic activities of daily living Supplement for persons under 18 Limitation Transfer Documentation Non-residents Annotations Line 31800 – Disability amount transferred from a dependant What's new for 2022? Who may claim? Limitations Documentation Non-residents Annotations Medical expenses What's new for 2022? Line 33099 – Medical expenses for self, spouse or common-law partner, and dependent children under 18 years of age Interactions with disability-related tax measures Interaction with lump-sum payments received in lieu of health or dental coverage Indexation Non-residents Line 33199 – Allowable amount of medical expenses for other dependants Interactions with disability-related measures Indexation Non-residents Allowable medical expenses Attendant care and care in an establishment Nursing home care School or institution care Remuneration for care Full-time attendant care at home Group home care Full-time attendant care outside a self-contained domestic establishment Attendant care not claimed under any of the above provisions Reproductive technologies Bone marrow or organ transplant – Related costs Specially trained animals and related expenses Transportation services and travel expenses COVID-19-related expenses Annotations Student-related credits Line 31900 – Interest paid on student loans Qualifying loans Who may claim? Five-year carryover Documentation Non-residents Annotations Line 32300 – Tuition, education, and textbook amounts Tuition amount Overview What qualifies as tuition? Ancillary fees Statutory exclusions Eligible and non-eligible fees Occupational, trade, or professional examination fees Timing of payment Criteria for tuition credit Canadian educational institution Foreign university Commuters to the United States Education amount (2016 and earlier taxation years) Overview Qualifying and specified educational programs Designated educational institution Textbook amount (2016 and earlier taxation years) Transfer and carryforward of unused tuition amount Documentation Requirement to issue forms Rules where financial assistance provided Deemed residents Non-residents Annotations Line 32400 – Tuition amount transferred from a child or grandchild Non-residents Annotations Donations and gifts Line 34900 – Donations and gifts Gifts Eligible amount of gift Amount of advantage Nominal advantage Determination of intention to give Deemed fair market value for purposes of calculating the eligible amount of a gift Gifts in kind Donations of publicly listed securities Donations of publicly listed flow-through shares Donations of recently purchased property Tax shelter gifting arrangements Returned properties Gifts of cultural property Ecological gifts Foreign gifts Gifts by commuters Documentation Non-residents Annotations Federal dividend tax credit Line 40425 – Federal dividend tax credit Documentation Non-residents Annotations Other non-refundable credits Line 30800 – Base CPP or QPP contributions through employment income What's new for 2022? Overcontributions Optional contributions Non-residents Annotations Line 31000 – Base CPP or QPP contributions on self-employment income and other earnings What's new for 2022? Optional CPP and QPP contributions Non-residents Annotations Line 31200 – Employment insurance premiums through employment What's new for 2022? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Line 31205 – Provincial parental insurance plan (PPIP) premiums paid What's new for 2022? Who may claim an amount on Line 31205? Maximum claimable Calculation of employee's QPIP premiums Non-residents Annotations Line 31210 – PPIP premiums payable on employment income What's new for 2022? Who may claim an amount on Line 31210? Maximum claimable Calculation of employee's QPIP premiums Non-residents Annotations Line 31215 – PPIP premiums payable on self-employment income What's new for 2022? Who may claim an amount on Line 31215? Maximum claimable Calculation of self-employed individual's QPIP premiums Non-residents Annotations Line 31217 – Employment insurance premiums on self-employment and other eligible earnings What's new for 2022? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Line 31220 – Volunteer firefighters' amount Amount of the tax credit Eligible volunteer firefighting services Eligible search and rescue volunteer services Documentation Interaction between the tax credit and the tax exemption Non-residents Annotations Line 31240 – Search and rescue volunteers' amount Amount of the tax credit Eligible search and rescue volunteer services Eligible volunteer firefighting services Documentation Interaction between the tax credit and the tax exemption Non-residents Annotations Line 31260 – Canada employment amount What's new for 2022? Indexation Non-residents Annotations Line 31270 – Home buyers' amount What's new for 2022? Who may claim? Qualifying home Non-residents Annotations Line 31285 – Home accessibility tax credit What's new for 2022? Who may claim? Qualifying individual Eligible individual Eligible dwelling Qualifying expenditures and qualifying renovations Expenses incurred by a condominium corporation, trust, etc. Interaction with medical expenses tax credit Documentation Non-residents Annotations Line 31350 – Digital news subscription expenses Who may claim? Digital news subscription Qualifying subscription expense Qualified Canadian journalism organization Non-residents Annotations Line 31400 – Pension income amount What's new for 2022? Eligible pension income Foreign pensions Elected split-pension income Computation Non-residents Annotations Line 32600 – Amounts transferred from a spouse or common-law partner Non-residents Annotations Line 40427 – Minimum tax carryover Annotations Line 40500 – Federal foreign tax credit Foreign non-business-income tax credit Foreign-source income Tax-exempt income Foreign business-income tax credit Business-income tax Foreign-source business income Administration Non-residents Annotations Lines 40900 and 41000 – Federal political contribution tax credit Annotations Line 41200 – Investment tax credit What's new for 2022? Expenditures qualifying for an ITC Qualified property Apprenticeship expenditures Qualified expenditures in respect of SR&ED Renounced eligible exploration expenses Computing the ITC Claiming the ITC Carryover period for ITCs Claiming a refund Reduction of the capital cost of property Recapture of ITCs Non-residents Annotations Lines 41300 and 41400 – Labour-sponsored funds tax credit Non-residents Annotations Line 41450 – Section 217 tax adjustment Annotations Federal logging tax credit Income for the year from logging operations Non-residents Annotations Chapter 6 – Federal tax payable or refundable Overview Net federal tax Federal tax calculation – Brackets and rates What's new for 2022? Non-residents Annotations Line 40424 – Tax on split income Overview Historical perspective Liability for TOSI Specified individual Split income Related business Source individual Excluded amounts Amounts received on inherited property – Individuals 24 and younger Amounts not derived from a related business – Individuals 18 and older Amounts derived from an excluded business – Individuals 18 and older Bright-line test Business cessation or disposal Interaction with subsection 82(3) election Reorganizations or other changes to person or partnership carrying on the business Example – Excluded business exception Amounts received on excluded shares – Individuals 25 and older Amounts received where spouse or common-law partner is 65 or older Amounts received where spouse or common-law partner died before the end of the year Amounts received as a result of breakdown of marriage or common-law partnership Taxable capital gains deemed to be realized on death Taxable capital gains realized on QSBC shares or qualified farm or fishing property Returns on capital contributed – Individuals age 18 to 24 Amounts representing a reasonable return – Individuals 25 and older Reasonable return Amounts received on inherited property – Continuity rules for individuals 18 and older Exclusions — Summary table Non-arm's length dispositions by a minor Administration Reporting TOSI Joint liability Annotations Surtax on income earned outside Canada Federal tax otherwise payable Individual's income for the year Income not earned in a province Residents Annotations Recapture of investment tax credit Reporting Annotations Minimum tax Liability Computation of AMT Adjusted taxable income Tax credits Foreign tax credit Federal tax on split income AMT carryforward Annotations Line 41500 – Canada workers benefit advance payments received What's new for 2022? Reporting Non-residents Annotations Line 41800 – Special taxes Additional tax on RESP accumulated income payments Calculation of the additional tax Reduction of the amount of AIPs subject to the additional tax Documentation Non-residents Tax on excess employee profit-sharing plan (EPSP) amounts Specified employee Excess EPSP amount Calculation of the special tax payable on excess EPSP amounts Waiver or cancellation Filing and payment of tax Tax related to the non-purchase of replacement shares in a Quebec labour-sponsored fund Annotations Social benefits repayment and additional contributions Line 42100 – CPP contributions payable on self-employment income and other earnings What's new for 2022? Non-residents Annotations Line 42120 – Employment insurance premiums payable on self-employment and other eligible earnings What's new for 2022? Calculation of EI premiums on self-employment income Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Line 42200 – Social benefits repayment What's new for 2022? Old age security benefits Calculation of the repayment Adjusted income Withholding Employment insurance benefits Calculation of the repayment Adjusted income Non-residents OAS benefits Calculation Withholding Countries whose residents are not required to file Form T1136 Annotations Abatement, refundable credits, rebates, tax paid, and overpayments Line 43700 – Total income tax deducted Non-residents Annotations Line 43800 – Tax transfer for residents of Quebec Annotations Line 44000 – Refundable Quebec abatement Federal tax otherwise payable Income earned in Quebec Non-residents Annotations Line 44100 – Federal refundable First Nations abatement (on T1 return for Yukon residents) Non-residents Annotations Line 44800 – CPP or QPP overpayment What's new for 2022? Non-residents Annotations Line 45000 – Employment insurance overpayment What's new for 2022? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Net EI overpayment (Line 45100 of the T1 return for Quebec residents) Non-residents Annotations Line 45200 – Refundable medical expense supplement What's new for 2022? Reduction Adjusted family net income Non-residents Annotations Line 45300 – Canada workers benefit What's new for 2022? Eligibility requirements Common requirements Eligible dependant Basic CWB Eligible spouse Working income Adjusted net income Secondary-earner exemption CWB disability supplement Calculation of the CWB Basic CWB CWB disability supplement Indexation Prepayment Non-residents Annotations Line 45350 – Canada training credit What's new for 2022? Eligibility Training amount limit Calculation of the credit Interaction with the tuition credit Indexation Non-residents Annotations Line 45400 – Refund of investment tax credit Non-residents Annotations Line 45600 – Part XII.2 trust tax credit Annotations Line 45700 – Employee and partner GST/HST rebate Employees Restrictions Harmonized sales tax (HST) Quebec sales tax (QST) Partners Documentation Annotations Lines 46800 and 46900 – Eligible educator school supply tax credit Amount of the tax credit Eligible educator Eligible supplies expenses Documentation Certificate from employer or delegated official Non-residents Annotations Line 47555 – Canadian journalism labour tax credit Qualifying journalism organization Calculation of the credit – Partnerships Qualifying labour expenditure Eligible newsroom employee Claiming the credit Annotations Line 47556 – Return of fuel charge proceeds to farmers tax credit Farming activities Calculation of the credit Claiming the credit Annotations Line 47557 – Air quality improvement tax credit (new for 2022) Qualifying locations Qualifying expenditures Calculation of the credit Claiming the credit Annotations Line 47600 – Tax paid by instalments Annotations Refund or balance owing Line 48400 – Refund Annotations Line 48500 – Balance owing Annotations Chapter 7 – Provincial and territorial tax What's new for 2022? Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon Overview Provincial or territorial tax on income Non-refundable tax credits Foreign tax credit Tax on split income Minimum tax Liability for provincial or territorial tax Line 42800 – Provincial or territorial tax Non-residents Annotations Line 47900 – Provincial or territorial credits Non-residents Annotations Newfoundland and Labrador T1 5001-C – NL 428 – Newfoundland and Labrador Tax T1 5001-D – Worksheet NL428 T1 5001-PC – Newfoundland and Labrador Information Guide T1 5001-R – Income Tax and Benefit Return (for NL) T1 5001-S2 – Schedule NL(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5001-S11 – Schedule NL(S11) – Newfoundland and Labrador Tuition and Education Amounts T1 5001-TC – NL479 – Newfoundland and Labrador Credits Prince Edward Island T1 5002-C – PE 428 – Prince Edward Island Tax and Credits T1 5002-D – Worksheet PE428 T1 5002-PC – Prince Edward Island Information Guide T1 5002-S2 – Schedule PE(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5002-S11 – Schedule PE(S11) – Prince Edward Island Tuition and Education Amounts Nova Scotia T1 5003-C – NS 428 – Nova Scotia Tax T1 5003-D – Worksheet NS428 T1 5003-PC – Nova Scotia Information Guide T1 5003-S2 – Schedule NS(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5003-S11 – Schedule NS(S11) – Nova Scotia Tuition and Education Amounts T1 5003-TC – NS479 – Nova Scotia Credits New Brunswick T1 5004-C – NB 428 – New Brunswick Tax and Credits T1 5004-D – Worksheet NB428 T1 5004-PC – New Brunswick Information Guide T1 5004-S2 – Schedule NB(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5004-S11 – Schedule NB(S11) – New Brunswick Tuition and Education Amounts T1 5004-S12 – Schedule NB(S12) – New Brunswick Seniors' Home Renovation Tax Credit Quebec Federal Income Tax T1 5005-PC – Quebec Information Guide T1 5005-R – Income Tax and Benefit Return (for QC) T1 5005-S2 – Schedule 2 – Federal Amounts Transferred From Your Spouse or Common-Law Partner T1 5005-S6 – Schedule 6 – Canada Workers Benefit (for QC) T1 5005-S8 – Schedule 8 – Quebec Pension Plan Contributions T1 5005-S10 – Schedule 10 – Employment Insurance (EI) and Provincial Parental Insurance Plan (PPIP) Premiums T1 5005-S11 – Schedule 11 – Federal Tuition, Education, and Textbook Amounts and Canada Training Credit (for QC) Quebec Income Tax TP-1.D – Income Tax Return TP-1.D.A – Schedule A: Amount for Dependants and Amount Transferred by a Child Pursuing Studies TP-1.D.B – Schedule B: Tax Relief Measures TP-1.D.C – Schedule C: Tax Credit for Childcare Expenses TP-1.D.D – Schedule D: Solidarity Tax Credit TP-1.D.E – Schedule E: Tax Adjustments and Credits TP-1.D.F – Schedule F: Contribution to the Health Services Fund TP-1.D.G – Schedule G: Capital Gains and Losses TP-1.D.H – Schedule H: Tax Credit for Caregivers TP-1.D.J – Schedule J: Tax Credit for Home-Support Services for Seniors TP-1.D.K – Schedule K: Premium Payable Under the Québec Prescription Drug Insurance Plan TP-1.D.L – Schedule L: Business Income TP-1.D.M – Schedule M: Interest Paid on a Student Loan TP-1.D.N – Schedule N: Adjustment of Investment Expenses TP-1.D.P – Schedule P: Tax Credits Respecting the Work Premium TP-1.D.Q – Schedule Q: Retirement Income Transferred to Your Spouse TP-1.D.R – Schedule R: Québec Parental Insurance Plan (QPIP) Premium TP-1.D.S – Schedule S: Amount Transferred by a Child 18 or Over Enrolled in Post-Secondary Studies TP-1.D.T – Schedule T: Tax Credit for Tuition or Examination Fees (Claiming or Transferring the Credit) TP-1.D.V – Schedule V: Tax Credits for Donations and Gifts TP-1.D.GR – Work Charts TP-1.G – Guide to the Income Tax Return TP-1.R – Request for an Adjustment to an Income Tax Return Ontario T1 5006-A – Low-income Individuals and Families Tax Credit T1 5006-C – ON 428 – Ontario Tax T1 5006-D – Worksheet ON428 T1 5006-D1 – Worksheet ON479 T1 5006-PC – Ontario Information Guide T1 5006-R – Income Tax and Benefit Return (for ON) T1 5006-S2 – Schedule ON(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5006-S11 – Schedule ON(S11) – Ontario Tuition and Education Amounts T1 5006-S12 – Schedule ON(S12) – Ontario Seniors' Home Safety Tax Credit T1 5006-TC – ON 479 – Ontario Credits T1 5006-TCA – Children Access and Relief from Expenses Tax Credit T1 5006-TG – ON-BEN – Application for the 2023 Ontario Trillium Benefit and Ontario Senior Homeowners' Property Tax Grant Manitoba T1 5007-A – MB 428-A – Manitoba Family Tax Benefit T1 5007-C – MB 428 – Manitoba Tax T1 5007-D – Worksheet MB428 T1 5007-PC – Manitoba Information Guide T1 5007-S2 – Schedule MB(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5007-S11 – Schedule MB(S11) – Manitoba Tuition and Education Amounts T1 5007-TC – MB 479 – Manitoba Credits Saskatchewan T1 5008-C – SK 428 – Saskatchewan Tax T1 5008-D – Worksheet SK428 T1 5008-PC – Saskatchewan Information Guide T1 5008-S2 – Schedule SK(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5008-S11 – Schedule SK(S11) – Saskatchewan Tuition and Education Amounts T1 5008-S12 – Schedule SK(S12) – Saskatchewan Home Renovation Tax Credit T1 5008-TC – SK479 – Saskatchewan Credit Alberta T1 5009-C – AB 428 – Alberta Tax and Credits T1 5009-D – Worksheet AB428 T1 5009-PC – Alberta Information Guide T1 5009-S2 – Schedule AB(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5009-S6 – Schedule 6 – Canada Workers Benefit (for AB) T1 5009-S11 – Schedule AB(S11) – Alberta Tuition and Education Amounts British Columbia T1 5010-C – BC 428 – British Columbia Tax T1 5010-D – Worksheet BC428 T1 5010-PC – British Columbia Information Guide T1 5010-R – Income Tax and Benefit Return (for BC) T1 5010-S2 – Schedule BC(S2) – Provincial Amounts Transferred From Your Spouse or Common-Law Partner T1 5010-S11 – Schedule BC(S11) – British Columbia Tuition and Education Amounts T1 5010-S12 – Schedule BC(S12) – British Columbia Home Renovation Tax Credit for Seniors and Persons with Disabilities T1 5010-TC – BC 479 – British Columbia Credits Yukon Territory T1 5011-C – YT 428 – Yukon Tax T1 5011-C1 – YT 432 – Yukon First Nations Tax T1 5011-D – Worksheet YT428 T1 5011-PC – Yukon Information Guide T1 5011-R – Income Tax and Benefit Return (for YT) T1 5011-S2 – Schedule YT(S2) – Territorial Amounts Transferred From Your Spouse or Common-Law Partner T1 5011-S11 – Schedule YT(S11) – Yukon Tuition, Education, and Textbook Amounts T1 5011-S14 – Schedule YT(S14) – Yukon Government Carbon Price Rebate T1 5011-TC – YT 479 – Yukon Credits Northwest Territories T1 5012-C – NT 428 – Northwest Territories Tax T1 5012-D – Worksheet NT428 T1 5012-PC – Northwest Territories Information Guide T1 5012-R – Income Tax and Benefit Return (for NT) T1 5012-S2 – Schedule NT(S2) – Territorial Amounts Transferred From Your Spouse or Common-Law Partner T1 5012-S11 – Schedule NT(S11) – Northwest Territories Tuition and Education Amounts T1 5012-TC – NT 479 – Northwest Territories Credit Nunavut T1 5014-C – NU 428 – Nunavut Tax T1 5014-D – Worksheet NU428 T1 5014-PC – Nunavut Information Guide T1 5014-R – Income Tax and Benefit Return T1 5014-S2 – Schedule NU(S2) – Territorial Amounts Transferred From Your Spouse or Common-Law Partner T1 5014-S6 – Schedule 6 – Canada Workers Benefit (for NU) T1 5014-S11 – Schedule NU(S11) – Nunavut Tuition, Education, and Textbook Amounts T1 5014-TC – NU 479 – Nunavut Credits Other T1206 – Tax on Split Income T2036 – Provincial or Territorial Foreign Tax Credit T2203 – Provincial and Territorial Taxes for Multiple Jurisdictions Chapter 8 – Quebec provincial income tax What's new for 2022? Overview Taxation of Quebec residents Federal and Quebec tax systems – Main differences Employment income Pension income transferred to or from a spouse Rental income Annual union or professional dues Child care expenses Eligible child care expenses Maximum amounts of eligible expenses Credit calculation Carrying charges and interest expenses Labour mobility deduction for tradespeople Security options deductions Strategic investments Spouse or common-law partner Amount for eligible dependant Amount for children (and other dependants) Child under 18 enrolled in post-secondary studies Amount transferred by a child 18 or over enrolled in post-secondary studies Other dependants Amount for single-parent family Amount for retirement income Donations and gifts Additional tax credit for large cultural donations Tax credit for cultural patronage Political contributions Medical expenses Canada employment amount Adoption expenses Caregiver amount Tuition fees Taxation of dividends Amount for a person living alone Amount for children's fitness Children's arts amount Critical mineral exploration tax credit Eligible educator school supplies credit Climate action incentive Canada training credit Canadian journalism labour tax credit Digital news subscription expenses Return of fuel charge proceeds to farmers Air quality improvement tax credit Tax credit for career extension Amount for recent graduates working in remote resource regions Registration fee for the Quebec enterprise register Contribution to the health services fund Premium payable under the Quebec prescription drug insurance plan (for individuals without a private group insurance plan) Tax credit for treatment of infertility Tax credit for home-support services for seniors Who is eligible? Amount of the credit Eligible expenses Independent living tax credit for seniors Work premium tax credits Solidarity tax credit Tax credit for the activities of seniors Tax shield credit Senior assistance tax credit Cost-of-living tax credits Other deductions and tax credits Taxable income deductions Refundable tax credits TP-1 annotations Total income (Lines 96 to 164) Line 96 — Canada Pension Plan (CPP) contribution Line 96.1 — Pensionable earnings under the Canada Pension Plan (CPP) Line 97 — Québec parental insurance plan (QPIP) premium Line 98 — Québec Pension Plan (QPP) contribution Line 98.1 — Pensionable salary or wages under the Québec Pension Plan (QPP) Line 101 — Employment income Line 102 — Taxable benefit on which no QPP contribution was withheld Line 105 — Correction of employment income Line 107 — Other employment income Line 107, Code 01 — Tips not included on the RL-1 slip Line 107, Code 02 — Wage loss replacement benefits (box O of the RL-1 slip) Line 107, Code 03 — Amounts allocated or paid under a profit-sharing plan Line 107, Code 04 — GST and QST rebates Line 107 — Optional contributions to the Québec Pension Plan Line 110 — Parental insurance benefits Line 111 — Employment insurance benefits Line 114 — Old age security pension Line 119 — Québec Pension Plan (QPP) or Canada Pension Plan (CPP) benefits Line 122 — Payments from a pension plan, a RRSP, a RRIF, a DPSP or a PRPP/VRSP, or annuities Line 123 — Retirement income transferred by your spouse Line 128 — Taxable amount of dividends from taxable Canadian corporations Line 130 — Interest and other investment income Line 136 — Rental income Line 139 — Taxable capital gains Line 142 — Support payments received Line 147 — Social assistance payments and similar financial assistance Line 148 — Income replacement indemnities (Codes 01 to 06) Line 148 — Net federal supplements (Code 07) Line 154 — Other income Line 154, Code 01 — Scholarships and bursaries (box O of the RL-1 slip) Line 154, Code 02 — Income supplement received under a government work-incentive project (box O of the RL-1 slip) Line 154, Code 03 — Other income (box O of the RL-1 slip) Line 154, Code 04 — Refund of unused RRSP or PRPP/VRSP contributions Line 154, Code 05 — Recovery of a deduction for contributions to a spousal RRSP Line 154, Code 06 — Other income (box C of the RL-2 slip) Line 154, Code 07 — Other income (boxes D, E, G, H and K of the RL-2 slip) Line 154, Code 08 — Other income (boxes B and G of the RL-16 slip) Line 154, Code 09 — Withdrawals from an RRSP under the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP) (boxes L and O of the RL-2 slip) Line 154, Code 10 — Amounts not repaid under the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP) Line 154, Code 11 — Recovery of resource deductions Line 154, Code 12 — Wage Earner Protection Program (WEPP) payments Line 154, Code 13 — Recovery of deductions for the purchase of tools Line 154, Code 16 — Canada Recovery Sickness Benefit, Canada Recovery Caregiving Benefit and Canada Worker Lockdown Benefit Line 164 — Business income Net income (Lines 201 to 260) Line 201 — Deduction for workers Line 205 — Registered pension plan (RPP) deduction Line 207 — Employment expenses and deductions Line 214 — RRSP or PRPP/VRSP deduction Line 225 — Support payments made (deductible amount) Line 228 — Moving expenses Line 231 — Carrying charges and interest expenses Line 234 — Business investment loss Line 236 — Deduction for residents of designated remote areas Line 241 — Deduction for exploration and development expenses Line 245 — Deduction for retirement income transferred to your spouse at December 31 Line 246 — Deduction for a repayment of amounts overpaid to you Line 248 — Deduction for QPP and CPP contributions (on employment income and income from self-employment) Line 248 — Deduction for the QPIP premium (on income from self-employment) Line 250 — Other deductions Line 250, Code 03 — Deduction for a social benefits repayment Line 250, Code 04 — Deduction for amounts transferred to a RPP, a RRSP, a RRIF, a PRPP/VRSP or an annuity Line 250, Code 05 — Deduction for an amount already included in income (RRSP or RRIF) Line 250, Code 06 — Deduction for a refund of unused RRSP or PRPP/VRSP contributions Line 250, Code 07 — Disability supports deduction Line 250, Code 08 — Deduction for legal fees Line 250, Code 09 — Deduction for Québec exploration expenses that give entitlement to an additional deduction Line 250, Code 11 — Deduction for the purchase of an income-averaging annuity for artists Line 250, Code 12 — Deduction for a repayment of support Line 250, Code 14 — Deduction for a loss in the value of investments in an RRSP, a RRIF or a PRPP/VRSP Line 250, Code 15 — Deduction for the repayment of a QESI amount Line 250, Code 16 — Deduction for amounts transferred to a registered disability savings plan (RDSP) Line 252 — Carry-over of the adjustment of investment expenses Line 260 — Adjustment of investment expenses Taxable income (Lines 276 to 297) Line 276 — Adjustment of deductions Line 278 — Universal Child Care Benefit and income from a registered disability savings plan (RDSP) Line 287 — Deductions for strategic investments Line 289 — Non-capital losses from other years Line 290 — Net capital losses from other years Line 292 — Capital gains deduction Line 293 — Deduction for an Indian Line 295 — Deductions for certain income Line 297 — Miscellaneous deductions Line 297, Code 02 — Security option deduction Line 297, Code 03 — Deduction for foreign researchers Line 297, Code 04 — Deduction for foreign experts Line 297, Code 05 — Deduction for foreign researchers on a post-doctoral internship Line 297, Code 06 — Deduction for foreign specialists Line 297, Code 07 — Deduction for foreign producers or foreign individuals holding a key position in a foreign production filmed in Québec Line 297, Code 08 — Deduction for employment income earned on a vessel Line 297, Code 09 — Deduction for employees of an international financial centre (IFC) Line 297, Code 12 — Deduction for income exempt under a tax treaty Line 297, Code 13 — Deduction for share and security issue expenses related to Québec resources Line 297, Code 14 — Deduction for employees of certain international organizations Line 297, Code 16 — Deduction for copyright income Line 297, Code 17 — Deduction for shares received in exchange for mining property Line 297, Code 19 — Deduction for foreign professors Line 297, Code 20 — Deduction for foreign farm workers Line 297, Code 21 — Income-averaging deduction for forest producers Line 297, Code 22 — Deduction for patronage dividends received from a cooperative Line 297, Code 23 — Canadian Forces personnel and police deduction Line 297, Code 24 — Deduction for a repayment of the Universal Child Care Benefit Line 297, Code 25 — Deduction for a repayment of income from a registered disability savings plan (RDSP) Non-refundable tax credits (Lines 350 to 398.1) Line 350 — Basic personal amount Line 358 — Adjustment for income replacement indemnities Line 361 — Age amount, amount for a person living alone and amount for retirement income Line 367 — Amount for dependants and amount transferred by a child 18 or over enrolled in post-secondary studies Line 376 — Amount for a severe and prolonged impairment in mental or physical functions Line 378 — Expenses for medical services not available in your area Line 381 — Medical expenses Line 385 — Interest paid on a student loan Line 390 — Tax credit for volunteer firefighters and search and rescue volunteers Line 391 — Tax credit for career extension Line 392 — Tax credit for recent graduates working in remote resource regions Line 395 — Tax credits for donations and gifts Line 396 — Home buyers' tax credit Line 397 — Tax credit for union, professional or other dues Line 398 — Tax credit for tuition or examination fees Line 398.1 — Tax credit for tuition or examination fees transferred by a child Income tax and contributions (Lines 401 to 447) Line 401 — Income tax on taxable income Line 402 — Tax adjustment for a single payment accrued to December 31, 1971 (Schedule E) Line 409 — Foreign tax credit (Schedule E) Line 411 — Tax credit for the beneficiary of a designated trust (Schedule E) Line 414 — Tax credit for contributions to authorized Québec political parties Line 415 — Dividend tax credit Line 422 — Tax credits Capital régional et coopératif Desjardins shares Line 424 — Tax credit for a labour-sponsored fund Line 431 — Credits transferred from one spouse to the other Line 432 — Alternative minimum tax carry-over, alternative minimum tax and deduction for logging tax Line 438 — Annual registration fee for the enterprise register Line 439 — Québec parental insurance plan (QPIP) premium on income from self-employment or employment outside Québec Line 441 — Advance payments of tax credits Line 443 — Special taxes and tax adjustment Line 445 — Québec Pension Plan (QPP) contribution on income from self-employment Line 446 — Contribution to the health services fund Line 447 — Premium payable under the Québec prescription drug insurance plan Refund or balance due (Lines 451 to 479) Line 451 — Québec income tax withheld at source Line 451.1 — Amount from line 58 of your Schedule Q Line 451.3 — Québec income tax withholding transferred by your spouse Line 452 — Québec Pension Plan (QPP) or Canada Pension Plan (CPP) overpayment Line 453 — Income tax paid in instalments Line 454 — Transferable portion of the income tax withheld for another province Line 455 — Tax credit for childcare expenses Line 456 — Tax credits respecting the work premium Line 457 — Québec parental insurance plan (QPIP) overpayment Line 458 — Tax credit for home-support services for seniors Line 459 — QST rebate for employees and partners Line 460 — Tax shield Line 462 — Other credits Line 462, Code 01 — Refundable tax credit for medical expenses Line 462, Code 02 — Tax credit for caregivers Line 462, Code 05 — Property tax refund for forest producers Line 462, Code 06 — Tax credit for adoption expenses Line 462, Code 07 — Tax credit for an on-the-job training period Line 462, Code 08 — Tax credit for the repayment of benefits Line 462, Code 09 — Tax credit for income tax paid by an environmental trust Line 462, Code 10 — Tax credit for the reporting of tips Line 462, Code 11 — Tax credit for the treatment of infertility Line 462, Code 15 — Tax credit for scientific research and experimental development Line 462, Code 18 — Tax credit for a top-level athlete Line 462, Code 19 — Tax credit for income from an income-averaging annuity for artists Line 462, Code 24 — Independent living tax credit for seniors Line 462, Code 25 — Tax credit for children's activities Line 462, Code 28 — Tax credit for seniors' activities Line 462, Code 29 — Grant for seniors to offset a municipal tax increase Line 462, Code 30 — Tax credit for interest on a loan granted by a seller-lender and guaranteed by La Financière agricole du Québec Line 462, Code 33 — Tax credit for the upgrading of residential waste water treatment systems Line 463 — Senior assistance tax credit Line 466 — Financial compensation for home-support services Line 474 — Refund Line 475 — Balance due Line 478 — Refund Line 479 — Balance due TP-1 – Guide to the Income Tax Return Chapter 9 – Special situations and tax planning Overview Family tax matters What's new for 2022? Income and capital gains splitting Amended rules limit income splitting after 2017 Attribution rules Income attribution Tax on split income Capital gains attribution Income-splitting planning ideas Putting a prescribed rate loan in place Income splitting through a spousal RRSP Tax-free and tax-deferred savings (other than retirement savings) Tax-free savings accounts Overcontributions Tax on non-resident contributions TFSAs held by US citizens or green card holders Tax on prohibited or non-qualified investments held by a TFSA trust Tax on advantages Integration with other registered savings TFSA tips Tax-free first home savings accounts Registered education savings plans Canada learning bond RESP anti-avoidance rules Registered disability savings plans Eligibility Contributions RDSP investments anti-avoidance rules Tax-free rollover of amounts to an RDSP Payments RDSP election for beneficiaries with a shortened life expectancy Taxation Elder care – Assistance and credits Disability tax credit Canada caregiver credit Home accessibility tax credit Multigenerational home renovation tax credit Attendant care or nursing home care Full-time care Part-time care Student-related planning, assistance, deductions, and credits Benefits of filing a T1 return Student loans and lines of credit RESPs Employment income Scholarships Student expenses – Deductions and tax credits Tuition and related tax credits Transfer of unused tuition tax credits Child care expenses Moving expenses RRSPs – Benefit of compounding Accommodation Tax considerations on marital breakdown Attribution rules Support payments Professional fees Tax credits and deduction for child care Retirement planning What's new for 2022? Registered pension plans Individual pension plans Deferred profit-sharing plans Registered retirement savings plans Timing for RRSP contributions RRSP deduction limit RRSP deduction limit for 2022 Unused RRSP deduction room Carryforward of undeducted RRSP contributions Determination of earned income Additional RRSP contributions Retiring allowances Lump-sum receipts RRSP overcontributions Transferring between plans Withdrawal of funds before retirement Maturity of an RRSP Maturity options Locked-in plans Enhanced anti-avoidance rules for RRSPs and RRIFs Non-qualified investments Prohibited investments Advantage tax Filing requirements Waiver of tax payable Advanced life deferred annuities Variable payment life annuities Pooled registered pension plans Financing retirement – Additional options Retiring allowance Retirement compensation arrangement Anti-avoidance rules for RCAs Estate planning Overview Amended rules limit income splitting after 2017 Testamentary trusts – 2016 tax changes Wills Alter ego and joint spousal or common-law partner trusts Estate freezes When to implement a freeze When to implement a refreeze Other planning opportunities from a freeze Intergenerational transfer of family business Estate administration tax – Probate Inter vivos gifts Life insurance Charitable planned giving The 21-year trust rule US tax considerations for Canadians What's new for 2022? Substantial presence test Closer connection test US rental property Sale of US real property Claiming dependants on US tax returns US estate tax Single-purpose corporation for US real property Canadians working in the United States State taxes Deceased persons What's new for 2022? Overview Testamentary trusts – 2016 tax changes Terminal-year filing requirements Filing deadlines – Terminal return Filing deadlines – Prior-year return Payment deadlines Summary of important tax filing and payment dates for the terminal year Filing-due dates Terminal return Optional returns Prior-year returns Balance of tax owing – Due dates Terminal return and each optional return, irrespective of their filing-due dates Prior-year returns Computation of income Periodic payments Deduction of expenses accrued but not due on death Rights or things Inclusion in terminal return Return for rights or things Transfer to beneficiary Business income Income from trusts Deemed disposition of property at death Exceptions to the general deemed disposition rule Capital property Non-depreciable property Depreciable property Farming or fishing property Class 14.1 depreciable property/eligible capital property Partnership rights Relieving rules Principal residence Capital gains exemption Deferred income plans Registered retirement savings plans (RRSPs) Unmatured plans Refund of premiums Post-death decrease in value of RRSP Matured plans RRSP contributions RRSP home buyers' plan and lifelong learning plan Registered retirement income funds (RRIFs) Post-death decrease in value of RRIF Registered pension plans (RPPs) Advanced life deferred annuities (ALDAs) Deferred profit-sharing plans (DPSPs) Pooled registered pension plans (PRPPs) Registered disability savings plans (RDSPs) Tax-free savings accounts (TFSAs) Employee stock options owned at death Reserves in the terminal year Capital losses in the terminal year Computation of tax – Personal credits and deductions Medical expenses Charitable donations Carryback of losses from estate's first taxation year Shares of corporation – Special considerations Testamentary transfers of property to a spouse, common-law partner, or spouse or common-law partner trust Use of a spouse or common-law partner trust Creation of a spouse or common-law partner trust Vesting indefeasibly Tainted spouse or common-law partner trust Deceased's estate and beneficiaries Income of the estate Residence of a trust Multiple testamentary trusts Estate loss carryback Clearance certificates Potential problems in applying for the clearance certificate Distributions in satisfaction of capital interests Distributions in satisfaction of income interests US estate tax Chapter 10 – Taxation of immigrants, emigrants, and non-residents What's new for 2022? Overview Concepts of tax residency – Treaty tiebreaker rules Residence status in the province of Quebec Resident of a contracting state Tiebreaker rules 1. Permanent home 2. Centre of vital interests 3. Habitual abode 4. Competent authorities Treaty tiebreaker cases Individuals emigrating from Canada Personal assets Marketable securities Deferral of departure tax Sale of assets post-departure Repatriation to Canada RRSPs and pension assets Stock options and deferred stock option benefits Shares in Canadian-controlled private corporations Determination of final tax liability Posting security Return to Canada Registered education savings plans Registered disability savings plans Tax-free savings accounts Canadian real property Real property outside Canada Canadian investment income for a non-resident of Canada Interest income Dividends Income trust and mutual fund distributions Rents and royalties RRSP and pension income Employment income Employment income in the year of departure Sourcing employment income Moving expenses Stock options Stock options exercised before 2013 Stock options exercised after 2012 Canada-US treaty rules Reporting required in year of departure T1 returns Form T1135 Form T1161 Planning Individuals immigrating to Canada Personal assets Consequences of immigration Taxation of capital gains during Canadian residency Reporting related to foreign investment assets Taxation of offshore investment fund property Taxation upon departure Employment income Other income Relief granted to short-term residents Relief from departure tax Part-year residents – Calculation of tax Planning Calculating taxes as a part-year resident Date an individual changes residency Claiming non-refundable tax credits as a part-year resident Credits where amounts must be prorated Credits where amounts are determined on the basis of costs incurred in the resident period Credits for EI or QPIP premiums paid and CPP or QPP contributions Pension credit Tuition credit Medical expense credit Donations credit Credit for interest on student loans Dividend tax credit Employment credit Adoption expenses credit Digital news subscription credit First-time home buyers' tax credit Home accessibility tax credit Volunteer firefighters' tax credit Search and rescue volunteers' tax credit Transferred credits Tuition, education, or textbook credit transferred from a child or grandchild Unused credits transferred from a spouse or common-law partner Claiming the refundable eligible educator school supply tax credit as a part-year resident Deductions RRSP contributions Treaty-exempt income Sale or rental of Canadian principal residence Impact on principal residence exemption Selling as a non-resident Certificate process Required reporting Rental of principal residence Change in use to rental property Making a 45(2) election as a non-resident Revoking a 45(2) election as a non-resident Taxation of rental income Section 216 – Deductions Section 216 – Losses Federal surtax and provincial tax Comparative table Sale of property – Recapture Implications on repatriation to Canada Underused housing tax Non-residents working in Canada Determination of employment income taxable in Canada Reporting Deductions Calculation of federal tax and non-refundable tax credits Provincial income tax Special rules for actors Section 216.1 election Special rules for pilots Election under section 217 for Canadian benefits Advantage of filing under section 217 Due dates Withholding Completing the section 217 T1 return Deductions Calculation of taxes payable Calculation of taxable income earned in Canada (TIEC) Federal tax credits Special credit Federal surtax and provincial tax Tax treaties Resident of a contracting state Tiebreaker rules Business profits Employment income Independent personal services Artists and athletes Pensions and annuities Capital gains Dividends and interest Other income Students Elimination of double tax Annotations Chapter 11 – Administration What's new for 2022? Overview Payment of tax Date payment considered to be made Source deductions Instalments No-calculation option Prior-year option Current-year option Refunds Interest Penalties Failure to file return of income Failure to provide information on form Failure to provide foreign-based information Failure to file a return for a reportable transaction Failure by tax preparer to file electronically Late or deficient instalments of income tax False statements or omissions Statements or omissions made by the taxpayer Third-party penalties General third-party penalties Penalty for avoidance planning in relation to tax debts Repeated failures Waiving penalties Interest on penalties Offences and punishment Failure to comply Tax evasion False refund or credit claims Interest Interest on late tax payments Effective interest date Interest resulting from GAAR reassessments Instalment interest Contra interest Overpayment interest Prescribed rates of interest Assessments Issuing assessments Reassessments within the normal reassessment period Reassessments beyond the normal reassessment period Nil assessment or notification of no tax payable Applying for a determination of loss Audits Waivers Adjusting a T1 return (Form T1-ADJ) Non-residents – Adjustment requests Objections to assessments Appeals to the Tax Court of Canada and the Federal Court of Appeal General procedure Informal procedure Partial disposition of appeals Appeals from Tax Court decisions Taxpayer relief provisions Voluntary disclosures program Service feedback program and the taxpayers' ombudsperson Service feedback program Taxpayers' ombudsperson CRA sign-in services for individuals and tax advisors CRA email notifications service MyCRA app Record retention Income tax books and records General record retention requirements Record retention period Written permission to destroy Failure to maintain proper records Location of books and records Annotations Appendices Appendix A – T1 Jackets, Worksheets, and Schedules T1 5000-R – Income Tax and Benefit Return (for PE, NS, NB, MB, SK, AB, 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 NS, AB, MB, and SK) 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 – Income of Non-Resident Spouse or Common-Law Partner for the Canada child benefit 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 – 2022 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 from Tax Under the Indian Act T123 – Election on Disposition of Canadian Securities T137 – Request for Destruction of Records T657 – Calculation of Capital Gains Deduction for 2022 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 for 2022 T929 – Disability Supports Deduction T936 – Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2022 T1006 – Designating an RRSP, a PRPP or an SPP Withdrawal as a Qualifying Withdrawal T1032 – Joint Election to Split Pension Income for 2022 T1043 – Deduction for Excess Registered Pension Plan Transfers You Withdrew from an RRSP, PRPP, SPP or RRIF T1090 – Joint Designation on the Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant 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 2022 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) T2039 – Air Quality Improvement Tax Credit T2042 – Statement of Farming Activities T2043 – Return of Fuel Charge Proceeds to Farmers Tax Credit 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 for 2022 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 (2022) 5000-G T1 Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada (2022) 5013-G Capital Gains (2022) — T4037 Ceiling Amounts for Housing Benefits Paid in Prescribed Zones (2022) RC4054 Changes for 2022 Message to employers Housing benefit ceiling amounts Common shelter Apartment and duplex House and trailer Death of a RRIF Annuitant or a PRPP Member (2022) RC4178 Part 1 – Death of a RRIF annuitant Slips issued by the RRIF carrier 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 Qualifying survivor – Transfers Post-death increase or decrease in value Part 3 – Death of an ALDA annuitant Single-life annuity Joint-lives annuity General Qualifying survivor – Transfers Digital services My Account MyCRA mobile web app Receiving your CRA mail online Electronic payments For more information 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 (2022) 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 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 (2021/06) — RC4064 Find out if this guide is for you New measures for 2021 New eligibility criteria for the disability tax credit Services for persons with disabilities Help for persons who have a hearing or speech impairment Help for persons who are blind or partially sighted Community Volunteer Income Tax Program Non-refundable tax credits Disability tax credit How to apply New measures as of the 2021 tax year Eligibility guidelines How eligibility is determined Fill out Form T2201 Fill out Part A of Form T2201 Submit your filled out Form T2201 What happens after Form T2201 is sent The application is approved The application is denied How to 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) Self-assessment questionnaire Amount for an eligible dependant (line 30400) Eligibility criteria 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 Supporting documents Medical expenses (lines 33099 and 33199) Home buyers' amount (line 31270) Eligibility criteria Home accessibility expenses (line 31285) Eligibility criteria Eligible renovations 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) Eligibility criteria Eligible expenses Who is considered a medical practitioner Amounts you cannot claim How to 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 If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users CRA Service Feedback Program Service complaints Formal disputes (objections and appeals) Reprisal complaints Electing Under Section 217 of the Income Tax Act (2022) T4145 Employers' Guide: Payroll Deductions and Remittances (2022) T4001 Is this guide for you What's new Canada Pension Plan Enhancement Canada Recovery Hiring Program extended for 2022 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 Interest Summary convictions Director's liability Cancel or waive penalties or interest How to appeal a payroll assessment or a CPP/EI ruling Chapter 2 – Canada Pension Plan contributions Impact of contribution errors When to deduct CPP contributions Employment in Quebec Amounts and benefits from which you have to deduct CPP contributions Employment, benefits, and payments from which you do not deduct CPP contributions Employment Benefits and payments CPP contribution rate and maximum Calculating the CPP deductions Starting and stopping CPP deductions Special situations Your employee turns 18 in the year Your employee turns 70 in the year Your employee gives you a completed Form CPT30 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 Canada's social security agreements with other countries Chapter 3 – Employment insurance premiums When to deduct EI premiums Amounts and benefits from which you have to deduct EI premiums Employment, benefits, and payments from which you do not deduct EI premiums Employment Benefits and payments EI premium rate and maximum Employment in Quebec Reducing the rate of your EI premiums if you have a short-term disability plan Calculating EI deductions EI overpayment Recovering EI premiums Establishing the number of insurable hours Record of Employment (ROE) Chapter 4 – Pensionable and Insurable Earnings Review (PIER) Why is a review important CPP deficiency calculations EI deficiency calculations Security options on PIER listings Multiple T4 returns Chapter 5 – Deducting income tax Form TD1, Personal Tax Credits Return Employment in Quebec Claim codes Request for more tax deductions from employment income Deduction for living in a prescribed zone Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions Tax deductions from commission remuneration Employees who earn commissions without expenses Employees who earn commissions with expenses Form TD3F, Fisher's Election to Have Tax Deducted at Source Remuneration from which you have to deduct income tax Reducing remuneration on which you have to deduct income tax Letter of authority RRSP contributions you withhold from remuneration Contributions to an RPP Calculating income tax deductions Tax deductions on other types of income Labour-sponsored funds tax credits Non-resident employees who carry out services in Canada Application for a waiver of tax withholding Chapter 6 – Special payments Advances Bonuses, retroactive pay increases, or irregular amounts CPP contributions EI premiums Income tax Death of an employee CPP contributions EI premiums Income tax Director's fees Employment income You only pay director's fees CPP contributions CPP contributions EI premiums Income tax Calculation You pay director's fees as well as a salary CPP contributions EI premiums Income tax Application for a waiver of tax withholding Director's fees paid to a corporation or partnership Resident corporation or partnership Non-resident corporation or partnership Employees profit sharing plan Overtime pay CPP contributions, EI premiums, and income tax Qualifying retroactive lump-sum payments CPP contributions, EI premiums, and income tax Retirement compensation arrangements Withholding and remitting Retiring allowances Income tax CPP contributions and EI premiums Transfer of a retiring allowance Salary Deferrals Non-prescribed plans or arrangements Prescribed plans or arrangements CPP contributions EI premiums Income tax Withdrawal from the prescribed plan Vacation pay and public holidays The employee takes holidays CPP contributions EI premiums Income tax The employee does not take holidays CPP contributions EI premiums Income tax Vacation pay trust Wages in lieu of termination notice Wage-loss replacement plans CPP contributions and EI premiums Income tax and reporting Workers' compensation claims Approved claims Regular salary paid to an employee 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 l'équité, de la santé et de la sécurité du travail (CNESST) Chapter 7 – Special situations Barbers and hairdressers, taxi drivers and drivers of other passenger-carrying vehicles Barbers and hairdressers CPP contributions and income tax EI premiums Taxi drivers and drivers of other passenger-carrying vehicles CPP contributions and income tax EI premiums Emergency services volunteers Rules for CPP contributions, EI premiums, and income tax deductions CPP contributions EI premiums Income tax Employees of a temporary-help service firm Employing a caregiver, baby-sitter, or domestic worker When are you considered to be an employer Employment in Canada by certified non-resident employers Employment outside Canada CPP contributions EI premiums Income tax Global Affairs Canada Fishers and employment insurance Indian employees Definitions Indian Reserve Indian living on a reserve Employer resident on a reserve Guidelines Taxable salary or wages paid to Indians CPP contributions, EI premiums, and income tax Non-taxable salary or wages paid to Indians Canada Pension Plan 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(TM) Form PD7A-RB 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 – Canada's social security agreements with other countries Appendix 5 – Calculation of employee EI premiums (2022) Appendix 6 – Special Payments Chart Digital 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 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 (2022) T4130 Employment Expenses (2022) T4044 Farming Income and the AgriStability and AgriInvest Programs Guide (2021) RC4060 Before you start Find out if this guide is for you AgriStability and AgriInvest contact information Forms and publications Where to mail your forms and return If you need more information What's new for 2021 New program payment codes COVID-19 pandemic measures Government assistance programs for the self-employed Capital cost allowance for clean energy equipment Return of Fuel Charge Proceeds to Farmers Tax Credit 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 premiums Goods and services tax/harmonized sales tax (GST/HST) The GST/HST Registry Find out what a partnership is Limited partnership Reporting partnership income Partnership losses Filing requirements for partnerships Capital cost allowance GST/HST rebate for partners Investment tax credit Scientific research and experimental development Chapter 2 – Your AgriStability and AgriInvest programs Participating in the programs AgriStability Find out if you are eligible How to participate AgriStability benefit calculations AgriStability program fee AgriStability administrative cost share (ACS) AgriInvest Find out if you are 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 Livestock farm Other animal specialties farm Field-crop farm Production cycle Contact person information Federal public office holder or employee of Agriculture and Agri-Food Canada (AAFC) Identification Fiscal period Method of accounting Was your 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 Line 575 – Point of sale adjustments 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 Income from program payments Canadian Food Inspection Agency (CFIA) payments COVID-19 program payments Livestock set aside program Mandatory isolation support for temporary foreign workers program (MISTFWP) Canada Emergency Wage Subsidy (CEWS) Temporary 10% wage subsidy Private insurance proceeds Private insurance proceeds to replace allowable commodities or allowable expense items 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 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) Return of Fuel Charge Proceeds to Farmers Tax Credit Insurance proceeds Miscellaneous Temporary taxable benefits 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 How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2021 If you had employees throughout 2021 Amount 1 Amount 2 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 Amount E – Return of Fuel Charge Proceeds to Farmers Tax Credit allocated to you in the year 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) Find out what capital cost allowance is 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 – UCC after additions and dispositions Column 7 – Proceeds of dispositions available to reduce additions of AIIPs and ZEVs Column 8 – Undepreciated capital cost (UCC) for current-year additions of AIIPs and ZEVs 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%) Class 56 (30%) 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 2021 Line 9933 – Capital contributions in 2021 Chapter 5 – Eligible capital expenditures Find out what an eligible capital expenditure is Find out what an annual allowance is Find out what a cumulative eligible capital account is 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 2021 farm loss Applying your farm losses from years before 2021 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2021 restricted farm loss Applying your restricted farm losses from years before 2021 Non-deductible farm losses Non-capital losses Chapter 7 – Capital gains Find out what a capital gain is Find out what a capital loss is How to calculate your capital gain or loss If you sold in 2021 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 Find out what a qualified farm or fishing property is 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 Digital 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 If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service 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 (2021) RC4408 Before you start Find out if this guide is 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 If you need more information What's new for 2021 New program payment codes COVID-19 pandemic measures Government assistance programs for the self-employed Capital cost allowance for clean energy equipment Return of Fuel Charge Proceeds to Farmers Tax Credit 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 premiums Goods and services tax/harmonized sales tax (GST/HST) The GST/HST Registry Find out what a partnership is Limited partnership Reporting partnership income Partnership losses Filing requirements for partnerships Capital cost allowance GST/HST rebate for partners Investment tax credit Scientific research and experimental development Chapter 2 – Your AgriStability and AgriInvest programs Participating in the programs AgriStability Find out if you are eligible How to participate AgriStability benefit calculations AgriStability program fee AgriStability administrative cost share (ACS) AgriInvest Find out if you are 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 If your farm was 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 Line 575 – Point of sale adjustments 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 Income from program payments Canadian Food Inspection Agency (CFIA) payments COVID-19 program payments Livestock set aside program Mandatory isolation support for temporary foreign workers program (MISTFWP) Canada Emergency Wage Subsidy (CEWS) Temporary 10% wage subsidy Private insurance proceeds Private insurance proceeds to replace allowable commodities or allowable expense items 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 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) Return of Fuel Charge Proceeds to Farmers Tax Credit Insurance proceeds Miscellaneous Temporary taxable benefits 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 How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2021 If you had employees throughout 2021 Amount 1 Amount 2 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 Amount E – Return of Fuel Charge Proceeds to Farmers Tax Credit allocated to you in the year 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 If 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 2020 but no longer seeded or produced in 2021 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 2022 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) Find out what capital cost allowance is 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 – UCC after additions and dispositions Column 7 – Proceeds of dispositions available to reduce additions of AIIPs and ZEVs Column 8 – Undepreciated capital cost (UCC) for current-year additions of AIIPs and ZEVs 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%) Class 56 (30%) 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 2021 Line 9933 – Capital contributions in 2021 Chapter 6 – Eligible capital expenditures Find out what an eligible capital expenditure is Find out what an annual allowance is Find out what a cumulative eligible capital account is 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 2021 farm loss Applying your farm losses from years before 2021 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2021 restricted farm loss Applying your restricted farm losses from years before 2021 Non-deductible farm losses Non-capital losses Chapter 8 – Capital gains Find out what a capital gain is Find out what a capital loss is How to calculate your capital gain or loss If you sold in 2021 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 Find out what a qualified farm or fishing property is 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 Digital 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 If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Gifts and Income Tax (2022) P113 Guide for the Partnership Information Return (T5013 Forms) 2021 (2021) T4068 Find out if this guide is for you Confidentiality of information Legislative references What's new Economic and Fiscal Update 2021 Air quality improvement tax credit Return of fuel charge proceeds to farmers tax credit COVID-19 support programs Government assistance received as a subsidy Capital cost allowance (CCA) CCA for clean energy equipment Yukon business carbon price rebate Chapter 1 – General information Find out if you have 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 to calculate Part IX.1 tax Tax shelters Applying for a tax shelter number The right time for a promoter to 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) 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 you need to know after filing your partnership information return Keeping records Review and audit Notice of assessment Filing 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 The CRA can 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 Documents required to be attached to Form T5013-FIN, Partnership Financial Return T5013 schedules Other documents Page 3 Additional information Miscellaneous information Page 4 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 T5013 SCH 1, Net Income (Loss) for Income Tax Purposes Reconciling the partnership's net income or loss for income tax purposes Supporting form and schedules Filling out the T5013 SCH 1 Page 1 How to calculate the net income or (loss) for income tax purposes Some specific adjustment items for the reconciliation Page 2 Some specific adjustment items for the reconciliation Reporting Wage Subsidy Page 3 Deductions required to calculate the net income or loss for income tax purposes: Some specific adjustment items for the reconciliation T5013 SCH 2, Charitable Donations, Gifts, and Political Contributions Eligible amount of gift Advantage Filling out the T5013 SCH 2 Page 1 Page 2 T5013 SCH 5, Allocation of Salaries and Wages, and Gross Revenue for Multiple Jurisdictions Filling out the T5013 SCH 5 Part 1 – Allocation of salaries and wages, and gross revenue Part 2 – Amounts allocated by one or more partnerships T5013 SCH 6, Summary of Dispositions of Capital Property Filling out the T5013 SCH 6 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 T5013 SCH 8, 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 Zero-emission vehicles (other than motor vehicles) – Class 56 Filling out the T5013 SCH 8 Column 1 – Class number Election under Regulation 1101(5q) T5013 SCH 8 examples List of the most common CCA rates and classes T5013 SCH 9, List of Partnerships How to know when a partnership is a direct member How to know when a partnership is an indirect member Filling out the T5013 SCH 9 Information about each of the entities T5013 SCH 12, Resource-Related Deductions Flow-through shares Filling out the T5013 SCH 12 Parts 1 to 4 Part 4 T5013 SCH 50, Partner's Ownership and Account Activity Registered charities Filling out the T5013 SCH 50 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) T5013 SCH 52, Summary Information for Partnerships that Allocated Renounced Resource Expenses to their Members Flow-through shares identification number Filling out the T5013 SCH 52 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 T5013 SCH 58, Canadian Journalism Labour Tax Credit T5013 SCH 63, Return of Fuel Charge Proceeds to Farmers Tax Credit GIFI schedules Chapter 9 – T5013, Statement of Partnership Income slip and Form T5013 SUM, 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 Tax shelter information Renounced Canadian exploration and development expenses Tax shelter information Filling out Form T5013 SUM, Summary of Partnership Income Part 1 – Identification Part 2 – Totals from the T5013 slips Part 3 – Contact information Part 4 – 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 Information returns reporting foreign affiliates, non-arm's length transactions with non-residents, and transfers or loans to a non-resident trust Information return reporting distributions from and indebtedness to a non-resident trust 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 Form T1139, Reconciliation of Business Income for Tax Purposes – Partnerships that cannot use the alternative method to have an off-calendar fiscal period 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 Digital 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 If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users CRA Service Feedback Program Service complaints Reprisal complaints Cancel or waive penalties or interest Income Tax Guide for Electing Under Section 216 (2022) T4144 Lifelong Learning Plan (LLP) (2022) RC4112 Find out if this guide is for you Definitions Chapter 1 – Participating in the LLP Eligibility requirements for the LLP Conditions the LLP student has to meet Qualifying educational program Designated educational institution Full-time registered student Enrollment on a part-time basis If the LLP student does not enrol in the program on time How much you can withdraw When you can 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 If the LLP student leaves the educational program Cancelling an LLP withdrawal 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 Digital services Digital 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 If you need help Direct deposit Forms and publications Electronic mailing list Tax Information Phone Service (TIPS) Teletypewriter (TTY) users CRA Service Feedback Program Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Medical Expenses (2022) RC4065 Newcomers to Canada (2022) — T4055 Non-Residents and Income Tax (2022) T4058 Northern Residents Deductions for 2021 (2021) — RC4650 What are the northern residents deductions? What form should you use? Can you claim the residency deduction? Can you claim the travel deduction? Who is an eligible family member? What are taxable 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 Place of residence Travel deduction For more information Forms and publications NR4 – Non-Resident Tax Withholding, Remitting, and Reporting (2022) T4061 Is this guide for you What's new Mandatory electronic filing of NR4 returns Interest Coupon Stripping Arrangements (ICSA) 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 correct 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 Digital services Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account Electronic payments For more information 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 (2022) T4155 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 calculés sur une année) Benefit earned (Prestation acquise) Connected person (Personne rattachée) Defined benefit limit (Plafond des prestations déterminées) Earnings (Gains ouvrant droit à pension) Enhanced CPP or QPP (Prestations améliorées du RPC et du RRQ) Forfeited amount (Montant perdu) Government-sponsored retirement arrangement (Mécanisme de retraite sous régime gouvernemental) Member (Participant) Money purchase limit (Plafond des cotisations déterminées) Money purchase / Defined contribution provision (Disposition à cotisations déterminées) Pension adjustment limits (Limites du facteur d'équivalence) Pension adjustment offset (Montant de réduction du facteur d'équivalence) Pension credit (Crédit de pension) Pension credit formula (Formule du crédit de pension) Provision (Disposition) Resident compensation (Rétribution du résident) Service (Service) Simplified pension plan (Régime de pension simplifié) Specified retirement arrangement (Mécanisme de retraite déterminé) Surplus (Surplus) Vesting, vested (Acquisition, droits acquis) Year's maximum pensionable earnings (Maximum des gains annuels ouvrant droit à 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 telephone By mail By courier Forms and publications Forms Guides Preparing Returns for Deceased Persons 2022 (2022) T4011 Registered Education Savings Plans (RESP) (2022) RC4092 Find out if this guide is 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 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 Tax treatment of RESPs Tax payable on an advantage Waiver of liability or cancellation Digital services Digital services for individuals My Account MyCRA mobile web app Receiving your CRA mail online MyBenefits CRA mobile app Electronic payments Related forms and publications Forms Information Circular Income Tax Folios For more information If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users CRA Service Feedback Program Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Rental Income (2021) T4036 Find out if this guide is for you What's new for 2021 COVID-19 pandemic measures Capital cost allowance for clean energy equipment Definitions Chapter 1 – General information Find out if 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 – Total 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 capital cost allowance) Line 9270 – Other expenses Expenses you cannot deduct Line 9949 – Total for personal portion 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 capital cost allowance Line 9948 – Terminal loss Line 9936 – Total capital cost allowance claim for the year 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 Find out what capital cost allowance is Amount of CCA you can claim Limits on CCA Classes of depreciable property Leasehold interest in real property that is a rental property Class 1 (4%) Class 3 (5%) Class 6 (10%) Class 8 (20%) Class 10 (30%) Class 10.1 (30%) Class 13 Class 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%) Class 56 (30%) How to calculate your CCA Area A – Calculation of capital cost allowance (CCA) claim Column 1 – Class number Column 2 – Undepreciated capital cost (UCC) at the start of the year Column 3 – Cost of additions in the year Column 4 – Cost of additions from column 3 which are AIIPs or ZEVs Column 5 – Proceeds of dispositions in the year Column 6 – UCC after additions and dispositions Column 7 – Proceeds of dispositions available to reduce additions of AIIPs and ZEVs Column 8 – UCC adjustment for current-year additions of AIIPs and ZEVs 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 Find out what your principal residence is Designating a principal residence Number of principal residences you can designate 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 If you or your spouse or common-law partner file Form T664 or Form T664 (Seniors) Change in use Special situations Digital 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 If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Retirement Compensation Arrangements Guide (2021) T4041 Find out if this guide is for you Find out if you need to read the whole guide Confidentiality of information Income Tax Act references Chapter 1 – General information Definition of an RCA 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 the T737-RCA slips and summary 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 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 Filing the T3-RCA tax return Filing through EFILE Filing on paper 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 T4A-RCA slips and summary 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 of Distributions from a Retirement Compensation Arrangement (RCA) Distributing the slips and summary Filing the final T4A-RCA slips and summary 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 slips and summary 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 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 (2021) T4040 What's new? Postdoctoral fellowship income Fixing contribution errors in defined contribution registered pension plans (DC RPP) Basic personal amount (BPA) Notice for budget proposal 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 2021 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 2021 RRSP deduction limit Contributions you can deduct for 2021 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, PRPP and SPP 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 15 – Transfers Line 18 – RRSP, PRPP or SPP contributions you are deducting for 2021 Lines 24 to 27 – 2021 withdrawals under the HBP and the LLP Line 28 – Contributions to an amateur athlete trust Unused RRSP, PRPP, or SPP contributions Withdrawing the unused contributions Tax on RRSP 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 Digital services Digital services for individuals My Account MyCRA mobile web app Receiving your CRA mail online MyBenefits CRA mobile 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 CRA Service Feedback Program Service 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 (2021) T4002 Find out if this guide is for you If your business is conducting research and development (R&D) in Canada For farmers For fishers What's new for 2021 COVID-19 pandemic measures Government assistance programs for the self-employed Capital cost allowance for clean energy equipment Return of Fuel Charge Proceeds to Farmers Tax Credit 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 premiums Goods and services tax/harmonized sales tax (GST/HST) The GST/HST Registry Find out what a partnership is Limited partnership Reporting partnership income Partnership losses Filing requirements for partnerships Capital cost allowance GST/HST rebate for partners Investment tax credit Atlantic Investment Tax Credit Scientific research and experimental development Mineral exploration tax credit (METC) Apprenticeship job creation tax credit 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 Miscellaneous Return of Fuel Charge Proceeds to Farmers Tax Credit 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 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) 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 – Total 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 the previous year Line 9938 – Optional inventory adjustment included in the previous year 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 How to calculate your maximum deduction for PHSPs If you did not have any employees throughout 2021 If you had employees throughout 2021 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 2021 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 Canadian Journalism Labour Tax Credit Return of Fuel Charge Proceeds to Farmers Tax Credit allocated to you in the year – Amount 5B 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 Column 4 – Cost of additions from column 3 which are eligible AIIPs or 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 – UCC after additions and dispositions Column 7 – Proceeds of dispositions available to reduce additions of AIIPs and ZEVs Column 8 – UCC adjustment for current-year additions of AIIPs and ZEVs 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 44 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%) Class 56 (30%) 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 transactions Capital gains Special rules for disposing of a building in the year Replacement property Chapter 5 – Eligible capital expenditures Find out what an eligible capital expenditure is Find out what an annual allowance is Find out what a cumulative eligible capital account is 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 2021 farm loss Applying your farm losses from years before 2021 Restricted farm losses (partly deductible) How to calculate your restricted farm loss Applying your 2021 restricted farm loss Applying your restricted farm losses from years before 2021 Fishing losses Non-capital losses Chapter 7 – Capital gains If you sold in 2021 capital property that you owned before 1972 Capital gains for farmers Disposing of farmland that includes your principal residence Method 1 Method 2 Restricted farm losses How to calculate your capital gain or loss Qualified farm or fishing property and cumulative capital gains deduction Find out what a qualified farm or fishing property is 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 Digital 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 If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users Service complaints Formal disputes (objections and appeals) Reprisal complaints Due dates Cancel or waive penalties or interest Students and Income Tax (12/21) P105 Find out if this guide is for you 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 Incentive Grant for Women 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 2021 Canada training credit limit for 2022 Child and family benefits Other provincial or territorial tax credits References Online Guides Forms Interpretation bulletins Income tax folios Digital 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 If you need help Direct deposit Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users CRA Service Feedback Program 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 (2021) P102 Find out if this guide for you Definitions 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 Self-assessment questionnaire 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 If you have 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 If you need help Forms and publications Electronic mailing lists Tax Information Phone Service (TIPS) Teletypewriter (TTY) users CRA Service Feedback Program Service-related complaints Formal disputes (objections and appeals) Reprisal Complaints Tax Treatment of Mutual Funds for Individuals (2021) — 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 T3 Trust Guide 2022 (2022) T4013 T5007 Guide – Return of Benefits (2022) T4115 What To Do Following a Death (2022) — RC4111 Appendix D — Information circulars, Interpretation bulletins, and IT Folios 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 IC 71-17R6 – Competent Authority Assistance under Canada's Tax Conventions (2021/06/01) Introduction How to contact the Canadian competent authority 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 negotiation consideration Downward transfer pricing adjustments and foreign tax credits Taxpayer responsibilities and participation Timelines for a MAP Tax avoidance Appeals and court decisions Collections Interest and penalties Competent authority agreements Part XIII tax, repatriation of transfer pricing adjustments, and audit settlements Provincial income tax considerations Advance pricing arrangements (APAs) Specific issues under the Canada–United States Tax Convention (1980) (the Convention) Notification pursuant to Article IX (Related Persons) and Article XXVI (MAP) Case resolution Article IV (Residence, LLCs) Article VII (Business Profits) Article XXVI (MAP, Arbitration) Specific agreements with the Canadian competent authority to relieve double taxation without involving a MAP Deferred recognition of profit, gain or income pursuant to Paragraph 8 of Article XIII (Gains) 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) Canada, BEPS, and the Multilateral Instrument Appendix I - Information Required for an Agreement under Article XXIX(5) of the Convention Appendix II - Information Required for an Agreement under Article XXIX-B(5) of the Convention 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 Cancelled – 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) 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) 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 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 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 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 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 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  What's new for 2022?
Personal tax calendar (2023)  Personal tax rates and tools
Filing tips for 2022 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
| 
