Beruflich Dokumente
Kultur Dokumente
Individuals: Determination
of Taxable Income and
Taxes Payable
Prepared by
Kristie Dewald
University of Alberta
Electronic Presentations in Microsoft PowerPoint
I.
I.
B. Non-Capital Losses
Unused business, property and employment losses and
ABILs
can be carried back three years and
forward 20 years
Deducted in arriving at taxable income
used against any source of income
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Creating income:
Trigger disposition of assets or investments that have
appreciated in value
If do not wish to actually dispose of the asset, sell to a spouse
or a corporation owned by the individual.
Retain use of asset through a sale-leaseback arrangement
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Additionally:
Shares must not have been owned by another non-related
person in last 24 months, and
During that time, 50% of the FMV of assets used in active
business
The deduction is discretionary
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B. Federal Tax
Progressively higher tax rates to higher levels of annual
income.
Each rate of tax is applied separately to the portion of the
individuals income that falls within the applicable range.
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B. Federal Tax
Taxable Income Range (2016)
Rate
Up to $45,282
15%
$45,283 to 90,563
20.5%
$90,564 to 140,388
26%
$140,389 - $200,000
29%
Over $200,000
33%
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B. Federal Tax
Individual has taxable income of $100,000 calculates
federal tax of:
15% x $45,282 $ 6,792
20.5% x $45,281
9,283
26% x $9,437 2,454
Total federal tax $ 18,529
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Pension
15% on first $2,000
qualified pension income received in a year.
Spouses who split pension income can double up on this credit
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Volunteer firefighters
Maximum Credit = $450 (15% x $3,000).
Perform a minimum of 200 hours of volunteer hours
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Transferrable credits
Unused credits for the following are transferrable to a
spouse:
Age
Pension
Disability
Tuition
Education and textbooks
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CPP and EI
15% of maximum allowable CPP and EI contributions
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Non-eligible Dividends:
Taxable dividends from CCPC whose income is active
business income eligible for SBD
Taxable dividends from CCPC earning investment income or
non-eligible dividends from another corporation
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F. Provincial Taxes
Determine their primary tax by applying specified tax
rates to the federal taxable income.
Rates vary from province to province.
Specify their own tax credits.
Individuals are subject to tax based on the province they
live in on December 31 of the taxation year.
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If revised federal tax > the normal federal tax, you have
AMT.
Provincial taxes are then calculated on the revised
amount.
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