BLOGS Experienced professionals

BLOGS Perosonnal TaX All income you earned, even if not reported on an information slip, must be disclosed on your tax return. However, certain non-taxable amounts are exempt from reporting as income, including: Lottery winnings of any amount, unless considered income from employment, business or property, or a prize for achievement. Most gifts and inheritances. Amounts paid by Canada or an allied country (if non-taxable in that country) for disability or death of a war veteran due to war service. GST/HST credit and CCB payments, including those from related provincial or territorial programs. Family allowance payments and the supplement for

BLOGS Federal Qualifying Environmental Trust (QET) Tax Credit Line 648 relates to the Federal Qualifying Environmental Trust (QET) Tax Credit. This credit is available to corporations that are beneficiaries under a qualifying environmental trust, and it is equal to the Part XII.4 tax payable by the trust on its income. Key Points: Qualifying Environmental Trust (QET): A QET is a trust meeting specific criteria, including having trustees that are either the federal or provincial Crown or a corporation resident in Canada licensed or authorized to provide trustee services. The trust’s primary purpose is to fund the reclamation of a site

BLOGS Investment Tax Credit (ITC) for Qualified Property This section outlines the rules and conditions for claiming the Investment Tax Credit (ITC) specifically related to qualified property, with a focus on designated activities in the Atlantic region. The ITC is a mechanism through which corporations can earn credits to reduce their Part I tax liability. Key Points Qualified Property Eligibility Corporations can earn ITCs on qualified property primarily acquired for designated activities in the Atlantic region. Designated Activities Designated activities include, among others: Manufacturing or processing goods for sale or lease. Logging. Farming or fishing. Storing grain. Harvesting peat. Class

BLOGS Investment Tax Credit (ITC) Line 652 pertains to the Investment Tax Credit (ITC), a credit that corporations can claim to reduce Part I tax. The ITC may be fully or partially refundable in some cases. Schedule 31, Investment Tax Credit – Corporations, is used to calculate this credit.   Key Points: Calculation Using Schedule 31: Corporations calculate the ITC using Schedule 31, which involves applying a specified percentage to the cost of acquiring certain property (investments) or on specific expenditures. The capital cost of the property or expenditure must be reduced by any government or non-government assistance received or

BLOGS Scientific Research and Experimental Development (SR&ED) Corporations engaged in scientific research and experimental development (SR&ED) may need to report recapture in their income tax return when disposing of property used in SR&ED or converting it to commercial use. The recapture rules depend on whether the property was disposed of or transferred to a non-arm’s length party. Disposition of Property with SR&ED ITC: When disposing of property on which SR&ED Investment Tax Credits (ITC) were earned, the recapture is the lesser of: ITC earned for the property. The amount calculated by applying the ITC percentage to the proceeds of disposition