General Rules Flashcards
Additional CESG
$50,197 or less income. 20% on first $500
more than $50,197 but less than $100,392 then 10% on first $500
Maximum grants a beneficiary can receive.
$7200 which includes both additional and basic grants
Probate fee calculations
Add assets qualified, minus mortgage(or secured loan)
Add assets with no beneficiaries.
Spousal trust- avoids probate fee on the death of surviving spouse, not on the death of the first spouse to die
A probate fee is charged on the?
Gross assets( before taxes)
Value of the estate
Net after taxes after paying debts and other payables.
Probate fee on gross assets. Minus probate fee is mentioned
Distribution of the assets
Net assets that are the value of estate- Probate fee
Share per capita vs share per stripe/roots
Per capita divides equally per beneficiary and per stripe is per family roots
Spousal trust rollover on death based on testamentary trusts
The decision of the executor either at ACB or FMV deemed disposition
For tax-deferred spousal rollover, the spouse must be a resident of Canada
Principal residence tax exemption
(capital gain*(1+# of years of stay))/total # of years of ownership
Adoption expenses tax credit
Non refundable tax credit. Parents can claim these incurred expenses in the tax year that includes the end of the adoption period in respect of the child.
The eligible amount of tax credit is equal to the lesser of the maximum adoption expense amount or eligible adoption expenses.
Parents can share eligible adoption expenses in whichever proportions they agree.
Alternative Minimum Tax
Introduced in 1986, targeted high-income earners .
individual’s taxable income is recalculated without allowing certain tax deductions and/or income tax preferences.
Is applied to the taxpayer’s adjustable taxable income in excess of $40,000
in 2022, federal minimum tax is 15% and provincial’s varies from 4% to 11%
