FINE 4050 Lecture Notes - Lecture 6: Mutual Fund, Accrued Interest, Income Splitting
Document Summary
Required to file a tax return in a given (tax) year if for that year you are a resident or a deemed resident of. Whether or not a person is a resident of canada is dependent of factors such as amt of time in canada that year, ownership of residence in canada, having relatives, bank accounts, economic ties to canada. Canadian income taxes are determined using the following three steps: calc total income from all sources. Three major categories of income: employment income. Wages, salary, commissions, bonuses, and other employment benefits (is use of company car). If self-employed, employment income = income from your business minus reasonable expenses: pension and other social security income. Income from company pension plan, from canda pension plan (cpp), old age security (oas) payments, employment insurance (ei: investment income. Interest, dividend, capital gains, net rental income from properties. Exemptions: lottery winnings, inheritances, certain child-support programs, and capital gains on the sale of principle residence.