Class Notes for Accounting at Laurentian University of Sudbury

RRSP Income and Deductions Registrants to an RRSP plan are able to deduct the contributions made in the year and also within the first 60days ofthe following year. Theincome earnedwithin the RRSP plan is not taxeduntilthef...

Non- arms length Transactions..close encounters of a tax kind! Transactions involving taxpayers who do not deal with each-other at arms length, can have some very unkind tax consequences. It is therefore; very important to...

Other Income Other Deductions Common sources of other income: Old Age, Canada Pension Plan, and EI insurance payments are included in net and taxable income when received Payments from a pension plan; withdrawals out of a...

Medical Expenses (Another non-refundable tax credit) Medical expenses can be claimed for any 12 month period ending in the year (provided it doesnt overlap with a period claimed in the year before). The amount for the cred...

Credit Base Amount Reduced by Rate Transfer? Carry Fwd? Basic Personal 11,809 NA 15 No No Credit Spousal 11,809 Partners NI for (+ 2,182 if 15 No No Credit infirm) Tax Purposes Eligible 11,809 Dependants NI Dependant (+ 2,...

Capital Gains and Losses A capital gain becomes a taxable capital gain after the inclusion rate (50) is applied to the capital gain. A capital loss becomes an allowable capital loss after the inclusion rate (50) is applied...

CATEGORIES OF CAPITAL PROPERTY (PUP LPP) There are two categories of capital property: Personal use property Listed personal property The ITA defines the first two as follows: Personal use property is property owned by th...

Capital Gains Reserves Often the seller of capital property must agree to accept the proceeds of the sale over a number of years due to the large amounts of money involved. A capital gains reserve is allowed where all or p...

Invest in learning about Income from a Rental Property Is income from a rental property considered business or property income? . it depends on how much effort is needed, but CRA has stated that if you have more than 5 ful...

Income from property Income from property is what is known as passive income. It is generally earned from an investment of capital of some type that generates a return without the investor having to actively earn the incom...

DEPRECIABLE CAPITAL PROPERTY! GAAP vs ITA Capital property is treated with strict rules under ITA (much different than GAAP) The equivalent to Amortization is CCA (capital cost allowance) Often leads to recognizing defe...

Information Formula Sheet Common Capital Cost Allowance Classes their rates: Class Rate Description of some assets in the class 1 4 Most buildings acquired after 1987 1 10 Most buildings acquired after 2007 used in MP 1 ...

Reserves First of all, you must determine if the inventory sold is real property (land and buildings)? If yes, then you can claim a reserve on a portion of the income not received in the current year. The reserves can be c...

INCOME FROM A BUSINESS Definition of Business includes a profession, calling, trade, manufacturing or undertaking of any kind whatsoever in the nature of trade. It does not include an office or employment. Most rules are f...

Income From Employment Employed vs. Self Employed (Independent Contractor) Important to determine for 2 reasons: 1) EMPLOYER needs to know if they need to withhold income tax, CPP and EI premiums. Employer would also incur...

permacharts MT FINANCIAL STATEMENTS • Financial statements are documents that are BALANCE SHEET (B/S) STATEMENT OF RETAINED EARNINGS (SRE) ...

Advance your knowledge with our advanced Accounting II! This companion Guide to Accounting I develops the reader’s understanding of balance sheets before moving into an effective summary of how assets are treated for accou...

Specialized Accounting quick reference information in one handy place! This Guide provides specialized reference material that flows naturally from the contents of its companion Guides Accounting I and Accounting II. The t...