YU 3541 Fall2008, Chapters 7 and 8 (Sept. 25)

YU 3541 Fall2008, Chapters 7 and 8 (Sept. 25) - LECTURE...

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LECTURE #5-PERSONAL INCOME TAXES AND TAX PLANNING Agenda 1. Hand out Assignment #1 2. Personal Income Taxes- Chapter #7 and CGA Booklet pages 42-45. 3. Income Tax Planning-Chapter #8, Chapter #17 (Pages 447-454) and CGA Booklet pages 56-59, 64 to 72 and 107 to 116.
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2 Chapter #7-Introduction to Personal Taxes Terms and Definitions Self-assessment T-1 Prescribed Forms Progressive Tax System Marginal Tax Rate Average Tax Rate Tax Credits Surtaxes
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3 Calculating Your Personal Income Tax Liability Employment + Pension + Rental + Business + Investment + Other = Total Income Minus: deductions and expenses such as pension plan and RRSP contributions, support payments, childcare = Net Income Minus: Special deductions (Canadian Forces, Non- Capital and Net Capital Losses of previous years, Capital Gains Deductions, etc.)-Page #101 CGA Booklet. = Taxable Income x tax rate = Gross Federal Tax Minus: Non-refundable tax credits (i.e. basic, age, dependents, disability, Public transit, Tuition, donations and medical)
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4 Taxation of Investment Income Interest*-Annual Accrual for compounding fixed-income investments. Dividend*- 45% Gross-up of the actual amount received and then a Dividend Tax Credit = 19% of the grossed- up amount, or 27.5% of the actual dividends. No gross- up for dividends received from non-Canadian companies. Stock dividends are treated the same as cash dividends. Are stock splits taxable? Capital Gains & Losses*-50% of the actual gain is taxable. Where you have a capital loss, 50% is the “allowable capital loss” and can be used against capital gains. Loss carryback 3 years, or forward indefinitely to reduce (only) capital gains.
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Interest Dividends Capital Gains
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This note was uploaded on 10/16/2011 for the course ADMS 3541 taught by Professor Staff during the Fall '10 term at York University.

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YU 3541 Fall2008, Chapters 7 and 8 (Sept. 25) - LECTURE...

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