ADMS 3520 Lecture Notes - Lecture 7: Tax Rate, Negative Number, Optometry
3 Oct 2017
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Lecture 7: taxable income and tax for individuals. Self-study problems 4-1; 4-2; 4-3; and 4-4. Overview of computation of taxable income and tax for individuals. The basic calculation of taxable income and tax for individuals is as follows: Deduction for 50% of ita section 7 stock option benefit (see lecture 2 notes) Ita 110(1)(f) deduction for social assistance and other similar payments. Payments covered are: welfare; workers compensation, guaranteed income supplement (gis) These payments are included in net income under other income [ita 56(1)(a),(u) & (v)] but are not included in taxable income. Therefore they are not taxed but are taken into consideration in the computation of net income (which can affect various tax credits and benefits) Note: when computing the prescribed interest benefit for a home relocation loan you can use the prescribed interest rate in effect when the loan was granted (for the entire year) if it results.
