Financial Services _Çô Client Services RFC121 Chapter Notes - Chapter 3: Canada Pension Plan, Foreign Tax Credit, Old Age Security
26 Oct 2016
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Personal finance chapter 3 notes planning your tax. Most people pay taxes in four major categories: taxes on purchases. Certain goods and services: food items, prescription goods. Low income goods may be eligible for refund of a portion of gst and pst the(cid:455)"ve paid. Excise tax: a tax imposed on specific goods and services, such as gasoline, cigarettes, alcoholic beverages, tires, and air travel: taxes on property. Real estate tax major source of revenue for local government. Tax is based on the assessed value of land and buildings. Automobiles, boats, furniture, farm equipment: taxes on wealth. Increase in value of any capital asset that is realized at the time of sale or transfer is subject to capital gains tax. Exceptions involve transfers to spouses/financial dependent/disabled children. Sale of an asset, such as stock/bond = capital gain (or loss: transferring ownership of an asset such as gift/inheritance can trigger capital gains/losses, taxes on earnings.
