Canadian Tax Calculations and Capital Gains Rules

Posted by Anonymous and classified in Economy

Written on in English with a size of 51.55 KB

Canadian Tax Calculations: AP 8-15

AP 8-15       
        
        
Accounting Income Before Income Tax     
Additions:       
Amortization      
Charitable Donations     
Political Contributions     
Meals and Entertainment27,60050%   
        
Deductions:      
Landscaping      
Warranty  22,00017,500   
CCA       
Class 1  275,0004%   
Class 10  28,00030%   
        
Class 8 UCC 83,000    
Additions:  63,250    
Dispositions      
Lesser OfCost46,000     
 POD28,500 -28,500   
CCA Base   117,750   
CCA Rate   20%   
Class 8 CCA  23,550 -23,550(23,550)
Total Maximum CCA      
        
        
2025 Business Income     
        
        
Property Income      
Rent       
Operation Expenses      
CCA       
Cottage UCC85,0005,00080,000   
Addition:0.5375,00080,000147,500   
CCA Base   227,500   
CCA Rate   4%   
CCA   9,100   
        
2025 Rental Income      
        
Capital Gains      
Vacant Land      
 POD     85,000
 ACB     -33,000
 Capital Gain    52,000
 Capital Gain Reserve     
 Lesser Of52,00050,00085,00030,588 -30,588
        
  52,00020%441,600  
 Capital Gain    21,412
        
Rental  LAND Building  
Deemed POD 100,000 375,000  
ACB  -5,000 -80,000  
Capital Gain 95,000 295,000390,000 
Principal Residence 49 173,333216,667
        
        
Shares       
POD1,3752755   1,375
ACB46,12515055 8,250  
  12575 9,375 46,125
  30095 28,500  
        
 Cost Per Share57546,12580.21739AVG Price 
        
Capital Loss     -22,060
Total Capital Gains     217,394
Inclusion Rate     50%
Taxable Capital Gain     108,697
        
2025 NET INCOME     276,247
Deductible CPP     -5,504
Adjusted 2025 Net Income    270,743
        
        
Taxable Income     270,743
  057,37557,37515%8,606.25 
Income Tax Payable57,375114,75057,37521%11,761.88 
Tax On First114,750177,88263,13226%16,414.3258,686
  177,882253,41475,53229%21,904.28 
  253,414270,74317,32933%5,718.57 
      64,405.3 
        
        
Tax Before Credits     64,405
CreditBPA  -16,129   
 Spousal BPA -16,129   
 Canada Caregiver -2,687   
 CPP  -3,356   
 Disability  -10,138   
 Disability Supplement -5,914   
        
 MedicalTotal Expense 21,245   
 Lesser of0.03270,743    
  2025 Amount2,834-2,834 -18,411 
 Total Credit Base   -69,582 
 Rate    15%-10,437
 Subtotal     53,968
 Charity5,500     
  15% 20030  
 33% lesser of     
  5,5002005,3001,749  
   270,743253,41417,3295,718.57-1,749
        
 Political Donations40075%30050%-450
 ADD CPP Payable    8,860
        
 2025 Income Tax Payable    60,629
        

Capital Gains and Recapture: AP 8-4

AP 8-4        
2025        
Capital Gain and Recapture   LandBuilding Gain
Proceeds of Disposition   900,0001,900,000  
ACB    800,0001,500,000  
Capital Gain    100,000400,000 500,000
Inclusion Rate      1
Taxable Capital Gain      250,000
         
CCA       1,248,019
Opening UCC        
Lesser Of        
POD 1,900,000      
COST 1,500,000     (1,500,000)
CCA Base       (251,981)
Recapture       251,981
UCC       -
         
Part A        
Recapture Added to Income      251,981
         
Purchase Price      2,800,000
Deposit       280,000
Proceeds Due       2,520,000
Interest Rate       6%
Interest Income      151,200
         
Capital Gains Reserve       
Lesser Of=(Capital Gain)*(Proceeds due after year end/Total Proceeds)    
 500,0002,520,0002,800,000    450,000
 =Capital Gain*20%*(4 - # of preceding years ending after disposition)   
 500,00020%40   400,000
         
Tax Impact        
Recapture       251,981
Interest Income      151,200
Taxable Capital Gain500,000400,00050%   50,000
Increase to 2025 Net Income      453,181
         
2026        
Capital Gains Reserve       
Lesser Of=(Capital Gain)*(Proceeds due after year end/Total Proceeds)    
 500,0002,520,0002,800,000    450,000
 =Capital Gain*20%*(4 - # of preceding years ending after disposition)   
 500,00020%41   300,000
         
Tax Impact        
2025 Capital Gain Reserve      400,000
2026 Capital Gain Reserve      300,000
Capital Gain       100,000
Inclusion Rate      50%
Taxable Capital Gain      50,000
Interest Income      151,200
Increase to 2026 Net Income      201,200
         
2027        
Capital Gains Reserve       
Lesser Of=(Capital Gain)*(Proceeds due after year end/Total Proceeds)    
 500,000-2,800,000    -
 =Capital Gain*20%*(4 - # of preceding years ending after disposition)   
 500,00020%42   200,000
Tax Impact        
2026 Capital Gain Reserve      400,000
2027 Capital Gain Reserve      300,000
Capital Gain       300,000
Inclusion Rate      50%
Taxable Capital Gain      150,000
Interest Income      0%
Increase to 2026 Net Income      150,000
   202520262,027   
Total Capital Gains 50,00050,000150,000  250,000
         
Part B        
         
Recapture Added to Income      250,000
         
Purchase Price      2,800,000
Deposit       840,000
Proceeds Due       1,960,000
Interest Rate       6%
Interest Income      117,600
         
Capital Gains Reserve       
Lesser Of=(Capital Gain)*(Proceeds due after year end/Total Proceeds)    
 500,0001,960,0002,800,000    350,000
 =Capital Gain*20%*(4 - # of preceding years ending after disposition)   
 500,00020%40   400,000
         
Tax Impact        
Recapture       251,981
Interest Income      117,600
Taxable Capital Gain500,000350,00050%   75,000
Increase to 2025 Net Income      444,581
         
2026        
Capital Gains Reserve       
Lesser Of=(Capital Gain)*(Proceeds due after year end/Total Proceeds)    
 500,0001,960,0002,800,000    350,000
 =Capital Gain*20%*(4 - # of preceding years ending after disposition)   
 500,00020%41   300,000
         
Tax Impact        
2025 Capital Gain Reserve      350,000
2026 Capital Gain Reserve      300,000
Capital Gain       50,000
Inclusion Rate      50%
Taxable Capital Gain      25,000
Interest Income      117,600
Increase to 2026 Net Income      142,600
         
2027        
Capital Gains Reserve       
Lesser Of=(Capital Gain)*(Proceeds due after year end/Total Proceeds)    
 500,000-2,800,000    -
 =Capital Gain*20%*(4 - # of preceding years ending after disposition)   
 500,00020%42   200,000
Tax Impact        
2026 Capital Gain Reserve      300,000
2027 Capital Gain Reserve      -
Capital Gain       300,000
Inclusion Rate      50%
Taxable Capital Gain      150,000
Interest Income      0%
Increase to 2026 Net Income      150,000
   202520262,027   
Total Capital Gains 75,00025,000150,000  250,000

Employment Income and Tax Payable: AP 4-5

AP 4-5             
              
Salary       93,500     
Additions:             
Bonus       0     
Chinese Language Course Tuition     3,600     
Payment From Disability Plan6,5003403  5,480     
    =6500-(340*3)        
Auto Benefit2%39,500117,0001,667  3,317Unable to go to work for 1 month so not 12, it is 11
Financial Counseling      450     
Performance Award      5,620     
Stock Option BenefitFMV250328,000        
  ACB250256,250        
     1,750  1,750     
Deductions:             
RPP Contributions      -4,150     
Auto Operating Expenses7,24034,00041,000  -6,004     
              
Employment Income For 2025     103,563     
              
Search and Rescue Compensation  Max < 81,200Max 200     
Deductible CPP   4,4303,356 -1,074     
2025 Net Income      102,689     
              
Stock Option Deduction 1,75050%   -875     
2025 Taxable Income      101,814     
              
Tax On First Bracket 57,37515%   8,606     
Tax On Second Bracket 57,37520.50%   9,110     
Federal Income Tax Before Credits     17,716     
              
BPA      -16,129      
Eligible Dependent16,1296,425   -9,704      
EI Max      -1,077      
CPP MAX      -3,356      
Canada Employment     -1,471      
Canada Caregiver Under 18    -2,687      
Transfer Cynthia's Disability    -10,138      
Disability Supplement     -5,914      
Canada Caregiver Rose     0      
Home AccessibilityLesser Of:Actual Cost14,600  -14,600      
   CRA Limit20,000         
Volunteer Search and Rescue    -6,000      
Tuition      -3,600      
Medical Expenses Tanja and Cynthia  29,430  Cosmetic Stuff is not covered   
Reduce by the lesser of3%102,6893,081         
   2025 Limit 2,834 -2,834      
              
Medical Expense Rose   4,625        
Reduce By the Lesser of:3%13,460 404        
   2025 CRA Limit          
     37,292.80 -77,510      
Credit Base      105,493.00      
Rate      15%(15,823.95)     
Charitable Donations15%20029%3,300  -987     
              
2025 Federal Income Tax Payable     905    6
Karma: 19%
Visits: 0

Related entries:

Tags:
UCC Taxable Income Employment Income AP 8-4 AP 8-15 Capital Gains Reserve Capital Gains CCA Tax Credits Charitable Donations Income Tax Payable Disability Tax Credit Recapture Canadian Tax AP 4-5