Introductory Notes.pdf

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Net Income for Tax Purposes
+ Employment Income
+ Business Income
- Business Loss
+ Property Income
- Property Loss
+ Taxable Capital Gains which exceed allowable Capital
Losses for the year
- Allowable Deductions
= Net Income (line 236 of T1)
Employment Income – Ch 2
- Salary received + taxable benefits are taxable
- Some benefits received from employment are not
taxable
- There are some deductions allowed against
employment income
Income from Business – Ch 4 + Ch 5
- Income from an unincorporated business is taxable on
the Personal tax return. (An incorporated company
files a Corporate tax return).
- An income statement is required to be prepared with a
year end of December 31 using rules from the Income
Tax Act
- If there is a loss from a business, it is deductible
against other income