RSM324H1 Lecture Notes - Lecture 10: Tax Deduction, Net Income, Tax Bracket
Document Summary
Individuals: determination of taxable income and taxes payable: determination of taxable income. Final returns of deceased taxpayers: determination of taxable income, net income for tax purposes must be converted to taxable income. Stock options (chapter 4: taxable income formula - revisited. Less: aggregate of losses from employment, business, property and abils. Net income for tax purposes: taxable income formula. Xxx: stock options deduction, home relocation loan deduction, o(cid:272)ial assista(cid:374)(cid:272)e, (cid:449)orker"s (cid:272)o(cid:373)pensation and amounts exempt by treaty, losses not utilized in other years, capital gain deduction. Losses incurred in a particular year can be offset against other sources of income. As part of the net income calculation: capital losses deductible only to extent of capital gains realized in the year. Losses incurred in a year are available for carry-over to other years. Such carry-overs have limited application: a. Used against any source of income: allowable business investment losses (abils)
