Division C Deductions - Personal Flashcards
1
Q
Division C Deductions
A
- these amounts get from NIFTP to taxable income
- employee stock options
- non capital loss
- farm loss
- ABIL carried forward/back
- net capital loss
- LCGE
- Deductions for GIS, welfare and workers comp if included in NI
2
Q
Employee stock options
A
- 50% x stock option employment income inclusion
- qualify for deduciton if one of the following are met:
1) public: options are not income the money at grant date
2) Private: options are not in the money at grant date or the shares are held for less than 2 years
3
Q
“Not in the money”
A
- FMV of the shares on grant date is equal to or less than exercise price
4
Q
Deductions for Northern residents
A
- $22/day for self contained domestic establishment in area
- $11/day for self contained domestic establishment not in area
5
Q
Non Capital Loss (and Farm losses): Deductions
A
- carryback 3 years
- carryforward 20 years
- deductible against any income type
6
Q
Restricted farm loss
A
- carryback 3 years
- carryforward 20 years
- deductible against farming income
7
Q
Allowable business investment income
A
- carryback 3 years
- carryforward 10 years (after 10 years moved to net capital loss)
- deductible against any income type
8
Q
Net capital loss
A
- carryback 3 years
- carryforward forever
- deductible against capital gains
9
Q
Farming losses
A
- FT farmer: no restriction of loss
- PT farmer: loss cannot exceed $15,000
Hobby farmer: deduction of loss not allowed
