RSM324H1 Chapter 7: Chapter 7 - Property Income
Document Summary
Income tax act does not provide specific definition of property income. The return on invested capital where little or no time, labour, or attention has been expended by the investor in producing the return. Dividend income - return on investment in capital shares of public and private corporations. Interest income - return on investments in bank deposits, loans, mortgages, bonds, and debentures. Rental income - return on the ownership of real estate or other tangible property. Proceeds from sale > original cost = capital gain. Royalty income - royalty on the ownership of properties, such as patents and mineral rights. Does not include gain/loss from sale of each of these properties. Gross income from interest and dividends be included separately. Interest from tfsa may be exempt from tax. Incurred for earning property income, not of capital nature, not a reserve, not personal/living expense, and reasonable. Except interest on loans acquired to generate property income.
