Chapter 9 - Other Income and Deductions -1 to 4 2011 post

Chapter 9 - Other Income and Deductions -1 to 4 2011 post -...

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Other Income and Deductions and Special Rules for Computing Income © Jakubowicz 2010.
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© Jakubowicz 2011 2 Other Income, Other Deductions, and Special Rules for Completing Net Income Other Sources of Income Non-taxable amounts Other deductions Moving expenses Child care expenses Registered Retirement Savings Plans (RRSP) Registered Education Plans (RESP) Tax Free Savings Accounts (TFSA)
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© Jakubowicz 2011 3 Other Sources of Income Catch-all category income that does not qualify as employment, business, property or capital gains Major sources of other income: RRSP and RRIF (Registered retirement income fund) benefits • Pension benefits from employer’s pension plan OAS (Old Age Security), CPP (Canada Pension Plan), EI (Employment insurance) DPSP (Deferred profit sharing plan) benefits Retiring allowances Scholarship, fellowships, bursaries Support payments
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Other Income Support payments [p.56(1)(b)] Spousal support taxable/deductible Periodic payments; pursuant to written agreement; other conditions Child support not taxable/deductible Agreements signed or changed after April 30, 1997 Scholarships [p.56(1)(n)] Exempt portion = 100% if program qualifies for education credit, otherwise $500 exemption © Jakubowicz 2011
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© Jakubowicz 2011 5 Not Taxable In Canada Lottery winnings Gifts Inheritance Life insurance proceeds on the death Profits from betting or gambling Unless in the business Receipts from accident, disability, sickness, or income maintenance insurance policies if employee paid all the premiums [ p. 6(1)(f)]
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© Jakubowicz 2010 6 Moving Expenses [s.62] Deductible if Incurred for relocation to commence a business or employment eligible if new residence location is at least 40 kilometres closer to the new work location than the previous residence Or to attend post-secondary school Limited to income earned/scholarships received in the new location If expenses > income, carry forward excess and claim in following year if earn sufficient income
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7 Moving Expenses Deductible expenses include : Travel costs including meals Transportation and storage of belongings Temporary board and lodging (up to 15 days) Costs of cancelling a lease for the old residence Selling costs of the old residence Legal fees and land transfer taxes Cost of maintaining a vacant former residence (max.
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This note was uploaded on 12/21/2011 for the course RSM rsm324 taught by Professor Dan during the Fall '11 term at University of Toronto.

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Chapter 9 - Other Income and Deductions -1 to 4 2011 post -...

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