Ch. 15 - Other Income - Personal

Question 1

Income from Deferred Income Plans that are taxed

1. RPP
2. DPSP
3. RRSP
4. RRIF

Answer 1

1. Registered Pension Plan
   - Periodic payments and lump-sum payments not transferred to another income plan
2. Deferred Profit Sharing Plan
   - Periodic payments and lump-sum payment not directly transferred to another income plan
3. Registered Retirement Savings Plan
   - lump-sum withdrawals prior to maturity and amount of required payment not made under HBP
4. Registered Retirement Income Fund
   - annual amount withdrawn

Question 2

Pension Income Splitting

1. Age and Eligibility

Answer 2

1. 65 or older - lifetime annuity payments from RPP, DPSP, RRSP, RRIF
   Under 65 - lifetime annuity payments from an RPP

Question 3

Other Registered Plans

1. RESP and RDSP
   - contributions / withdrawals
   - income earned

Answer 3

1. contributions are not deductible and not taxed when withdrawn. Income earned is taxed when withdrawn

Question 4

Canada Pension Plan

Answer 4

CPP can be split between spouses

Question 5

OAS

Answer 5

payments to those over 65.

high earners may be required to pay back some or all their OAS

Question 6

Retiring Allowances

• transfers
• transfer amounts

Answer 6

• can be transferred to an RPP or RRSP within certain dollar limits and time frames
• lesser of
  a) the retirement allowance received in the year and
  b) $2,000 for each year/part year they were employed

Question 7

Death Benefits

• Allocation
• Exemption

Answer 7

• Can be allocated to spouse or other beneficiaries

- $10,000 exemption is provided first to amount received by spouse, then on a pro rata basis to other beneficiaries

Question 8

Employment Insurance

Answer 8

• Payments are included in income

Question 9

Scholarships, Bursaries and Fellowships

- tax rules

Answer 9

• amounts are exempt from tax if the student was in full-time attendance at a post-secondary educational institution

Question 10

Research Grants

- tax rules

Answer 10

• amounts are included in income to the extent that the grant exceeds expenses related to research

Question 11

Spousal Support

• tax rules
• criteria

Answer 11

• taxable to recipient and deductible to payor if:
  1. payments are periodic
  2. payments are considered an allowance for maintenance of recipient
  3. payments are made while spouses are living apart due to marital breakdown
  4. recipient has discretionary use
  5. payments are a result of a decree, order or judgement

Question 12

Spousal Support

1. What makes a payment periodic

Answer 12

1. periodic payments are payable at regular intervals and at a fixed predetermined amount