RSM324H1 Chapter 7: CHAPTER 7-4
15 Feb 2017
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The return of interest is fully taxed when earned or, for individual, at least every. 12 months from the date the investment is made. It presents a combined annual yield in the form of both dividend payments and a growth in value of the shares. The dividend is taxed when received; however, for individuals, the dividend tax credit reduces the effective rate of tax. To the extent that common share investments grow in value, the resulting profit normally will be a capital gain for tax purposes. Only of capital gain is taxable, and the gain is taxed when investment is sold, rather than when the growth in value occurs: real estate investment. Yield rental income (fully taxable annually when earned) + capital growth (taxed when property sold) The cost of the building can be deducted as cca against rental income over future years. When the property is sold, the prior cca may be recaptured and taxed at that time.
