Monthly interest limit 300 Group insurance premiums ,Life insurance presidiums on owner that are collateral for loan Chpt 8 Business income March 12, 2018 2:27 PM Tax2202 2 Page 11 Downloaded by Pardeep Garg ([email protected]) lOMoARcPSD|4345911
Utilization of losses 1-non capital losses 2-LPP 3-other capital loses (PUP,PPE) Loss carry overs 1-Non capital losses Loses from Employment property or business Back 3 years -forward 20 years applied against every other source of income (taxable income ) 2LPP Back 3 years -forward 7 years Applied against LPP gains only Deduct in computing net income 3-Net capital losses Unused capital losses Back 3 years -forward indefinitely Applied only against capital gains PUP-NO Chpt 9 Calculation of net income /taxable income March 14, 2018 5:35 PM Tax2202 2 Page 12 Downloaded by Pardeep Garg ([email protected]) lOMoARcPSD|4345911
List of credits Personal tax credit s (base 15%) Basic personal tax credit Spouse or Common law partner credit - Is eliminated if spouse or common law partner makes more than 11635 Only deductible on net income while married Eligible dependant tax credit Can only be claimed on children if the parents are divorced Dependant must be related Only one can be claimed Canada caregiver credit over 18 People related to you that you take care of Must be mentally or physically or mentally infirm 6883 base amount if the DEPENDANT income less than 16,163 Anything above that threshold is deducted from the tax credit Canada caregiver credit under 18 2150 for each infirm child Age credit -may only be transferred between spouses only where there is an income threshold for a credit that the taxpayer is claiming for themselves Old person older than 65 ex) Taxpayer 1 us 70 years old NIFT =50,000 age credit 7225-(50,000-36430)*0.15 (7225-2036)=5189 *0.15 778 Once your net income is above 36,430 you have to subtract Credits for EI &CPP EI Max 836 CPP max 2564 Any contributions in excess of these amounts are refundable Pension credit First 2000 of pension income subject to 15% Payments from RPP a) Annuity payments from RRSP or RRIF b) Annuity from DPSB c) Income portion from other annuity payments d) NOT OAS,CPP Pension income includes Canada employment credit Lesser of Transferable credits to spouse Tuition Pension Age Disability Transfer of tuition credit to supporting persons Parent ,spouse ,grandparent up to 5000 Formulas Medical expense credit -15%(lesser of 3% of taxpayers net income ) disabled child under 18 = 4732 reduced by care expenses over 2772and eliminated once expenses exceed 7504 Chpt 10 Calculation of federal tax payable March 20, 2018 7:57 AM Tax2202 2 Page 13 Downloaded by Pardeep Garg ([email protected]) lOMoARcPSD|4345911
Lesser of Employment income Or 1177 Disability 8113 Available to someone has a prolonged physical or mental impairment That has been certified by a medical doctor Supplement for a disabled child under 18 4732 reduced by care expenses over 2772and eliminated once expenses exceed 7504 Tuition credit 15 % of tuition paid during the year Student loan interest 15% of interest paid under Public transit pass
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- Fall '18
- Taxation in the United States, Pardeep Garg