Preparing Canadian Income Tax Returns
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Preparing Canadian Income Tax Returns

Comprehensive practical instruction on how to prepare the Canadian T1 return and all related forms and schedules.
4.6 (113 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
549 students enrolled
Last updated 3/2017
English
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Includes:
  • 15 hours on-demand video
  • 2 Articles
  • 24 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • By the end of the course you will be able to confidently and accurately prepare and file personal T1 tax returns
  • Have a good knowledge of how investment income is taxed and reported
  • Solid understanding and tools to prepare rental property statements
  • Understand tax credits, tax deductions and other concepts necessary to prepare returns
  • Form a good understanding of business income and expenses and how to properly claim and report them on the statement of business activities and tax return
  • Learn a number of tips and tricks on preparing returns, statements and staying off the radar maps with the Canada Revenue Agency
  • Understand how the Canadian tax system works, and how the Canada Revenue Agency administers the tax system and assesses returns
View Curriculum
Requirements
  • Canadian content for Canadian residents only
Description

** COMPLETELY UPDATED FOR THE 2016 T1 TAX YEAR - INCOME, TAX BRACKETS, TAX CREDITS, DEDUCTIONS - ALSO INCLUDES NEW IMPORTANT NEWS ON PRINCIPAL RESIDENCES**

The SBC Personal Income Tax Course provides you with practical instructions and real-world examples preparing Canadian T1 tax returns.

The course is divided into 8 modules covering all the fundamental areas of personal income tax. Each topic is taught via video tutorials providing examples of personal tax software so that you can watch a seasoned tax professional take you through each slip, form and schedule necessary to file income taxes quickly and accurately.

The course provides you with over 14 hours of instruction. Watch all the video tutorials for comprehensive knowledge or just the video tutorials that apply to your situation. Either way, the tutorials are always there for you to reference.

Become more tax savvy, save personal taxes, save on professional tax preparation fees and potentially start your own tax preparation business.

Who is the target audience?
  • Canadian residents interested in learning more about personal income tax and preparing and filing their own returns
  • Tax students who are interested in leveraging their theoretical knowledge base with practical examples of form preparation
  • Individuals who are interested in starting their own tax preparation business and would like to expand their tax education and knowledge
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Curriculum For This Course
Expand All 208 Lectures Collapse All 208 Lectures 19:57:35
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The Canadian Income Tax System
24 Lectures 01:44:53

Welcome to the Canadian Income Tax Course! A brief introduction and some record-keeping before we get started.

Preview 03:54

*MARCH 2017 RELEASE** - 2016 T1 RETURNS

Dear Students,

Please note that this tax course is currently being updated for the 2016 T1 tax season. The new tutorials will be made available by Friday March 3, 2017. Additional tutorials and lectures will continue to be updated in the next few weeks after that date as more information is released on the upcoming 2016 T1 season and returns.

The update will include all the information necessary to prepare 2016 T1 returns including the updated legislation from Federal Budget 2016. It will also include the 2016 forms for your study and review

All of the information in this course is still currently relevant as it deals with tax rules and the tax system which does not change year to year. Only the credit amounts, brackets and forms are updated. The course content is always relevant.

Current tutorials which include information, rules and updates for areas that have been changed by the government will still be accessible and marked as "ARCHIVE" - The reason is that these rules are still relevant for any of you who will be preparing previous year tax returns that are still subject to these credits, rules, etc.

Have a Happy New Year and we'll see you soon with the update!

Regards,

Ian DiNovo

2016 T1 Update - March 2017 and ongoing updates
00:54

*2016 UPDATE* Course Notes - PDF FIle - January 2017 (2016 T1 Returns)
132 pages

*2016 UPDATE* Tutorial Notes - PDF slides with notes (January 2017)
162 pages

*2016 UPDATE* - Software used in the course tutorials & how to get a free trial
03:26

Questions on Course Material
03:49

In this tutorial we will go over the topic areas covered in section I of the course. We also explain why this course is a great resource for not only people wishing to prepare their own tax returns, but also students in tax and accounting.

Preview 03:00

An overview of the rules relating to who must file a tax return in Canada. After viewing this video, you will know if you have to file a tax return.

Preview 03:24

Even if you do not have a balance owing or refund, it may be a good idea to file a tax return anyway. Filing could result in future tax credits you wouldn't be entitled to if you didn't file.

Preview 06:55

An overview of how the Canadian tax system is administered by the government and the Canada Revenue Agency. Knowing how the system works is pertinent to the tax preparation process

The Canadian tax system and how it works
05:37

Tax returns have deadlines that must be adhered to if you are to avoid being charged penalties and interest. In addition, I doubt anyone wants to put themselves on the CRA's radar map by not filing on time.

</p>
Deadlines for filing personal tax returns
04:40

If tax returns are filed late, penalties and interest will be assessed by the CRA, This tutorial will go over the calculations used to assess these penalties and the related interest

Filing penalties and interest for late filed returns
04:48

Some taxpayers are required to make instalment payments throughout the year. This tutorial examines who is required to make the instalments, when they need to be paid by, and the consequences of not making them.

Instalment payments and when they should be made
05:38

Modern technology has changed the face of income tax return filing. This tutorial reviews the e-filing process and how it works. We also look at who is eligible to e-file

E-filing of personal tax returns and the e-file system
09:04

A common area of confusion in the tax realm is the difference between marginal tax rates and average tax rates. Here the marginal rate methodology is examined.

The marginal tax rate system in personal tax
05:50

2016 UPDATE - 2016 Federal Marginal tax rates
04:20

In this tutorial, an example is provided to show the difference between marginal tax rates and average tax rates. After viewing this tutorial, the difference will become clear.

Example illustrating marginal vs. personal tax
06:48

Another area of confusion relates to the difference between tax credits and tax deductions. These are explained in this tutorial.

Tax deductions vs. tax credits
04:47

An example illustrating the difference between deductions is provided. Here we look at the difference between a $1,000 deduction and $1,000 tax credit.

Examples of a tax credits and tax deductions
06:26

Once returns are filed, the CRA issues a Notice of Assessment (NOA). This is a very important document for a number of reasons, which are outlined in this tutorial. The process behind them is examined.

Notice of Assessments and their importance
04:57

An example of a Notice of Assessment is reviewed in detail, including the parts of the document and what they mean. After watching this tutorial you will be fully versed in NOA's and their format.

An example of a Notice of Assessment (NOA)
03:31

Similar to NOA's the CRA also issues Notice of Reassessments. In this tutorial we look at the difference between assessments and reassessments.

Notice of Reassessments issued by the CRA
03:50

A sample of a Notice of Reassessment is provided along with the detailed explanation as to how they differ from a Notice of Assessment. Once completed, you will be able to distinguish between the two documents.

Example of a Notice of Reassessment
03:12

2016 UPDATE - Some resources on Provincial tax brackets for your reference
06:03
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Tax Forms & Information Slips
29 Lectures 01:55:32

This video provides a brief overview of the topics covered in this section along with the importance of this subject area to the study of tax. Many courses do not look at forms and slips in details.

Introduction to tax forms and information slips
02:35

The most important form is the T1 itself. It is the summary of all the schedules, which includes all of your income, deductions, summary of tax credits, and the amount of taxes payable.

Attached for download to this lecture is the T1 General Form (sometimes referred to as the T1 General)

The T1 General return
07:18

This schedule is used to claim and calculate applicable tax credits that apply to you. It is also the schedule that calculates your Federal taxes payable.

Attached is a PDF of the Schedule 1 for your reference.

Schedule 1 - Federal tax
05:44

Certain credits can be transferred to a spouse if they cannot be used. This form is used to transfer those credits.

Attached here for download is a PDF of Schedule 2 for your reference.

Schedule 2 - Amounts transferred from spouse
02:46

An important schedule that is used to report the sale of investments, properties, bonds, shares and other capital property. It is the schedule used to calculate the taxable portion of capital gains, or determine capital losses for the year.

Attached here for download is a PDF of Schedule 3 for your reference.

Schedule 3 - Capital gains and losses
06:28

UPDATE 2016 - Schedule 3 - 2016 Changes - Disclosing Sale of Principal Residence
03:37

This schedule summarizes all of the interest, dividend and other investment income on a personal tax return. Also reported on this schedule are carrying charges and expenses related to earning investment income.

Attached here for download is a PDF of Schedule 4 for your reference.

Schedule 4 - Investment income and expenses
06:03

If any credits are claimed that relate to dependants, this schedule will need to be filled in and filed. It summarizes personal and other necessary information for dependants.

Attached here for download is a PDF of Schedule 5 for your reference.

Schedule 5 - Details of dependants
02:21

The working income tax benefit is a relatively new tax credit implemented by the government to give low income earners a tax break and an incentive to work. This schedule is used to determine eligibility and the amount of the benefit.

Attached here for download is a PDF of Schedule 6 for your reference.

Schedule 6 - Working income tax benefit
02:21

An important schedule for anyone who makes RRSP contributions or withdraws money from their RRSP. Also included in this form is information regarding withdrawals and payments under the Home Buyers Plan (HBP) and the Lifelong Learning Plan (LLP).

Attached here for download is a PDF of Schedule 7 for your reference.

Schedule 7 - RRSP worksheet and activity
03:42

For self-employed individuals who are subject to Canada Pension Plan premiums. This schedule calculates the amount of CPP premiums that are payable in the year. This also forms part of the tax payable on the T1 return.

Attached here for download is a PDF of Schedule 8 for your reference.

Schedule 8 - CPP contributions
05:48

Any donations and gifts made are recorded on this schedule. The schedule will then calculate the applicable tax credit that is then reported on the Schedule 1.

Attached here for download is a PDF of Schedule 9 for your reference.

Schedule 9 - Donations and Gifts
03:56

The most important worksheet for students. This schedule reports the amount of tuition paid in the calendar year along with credits for the number of full and part time months in eligible schools. The tuition credit, education amount and textbook credits are calculated. Transfers are also reported on this form.

Attached here for download is a PDF of Schedule 11 for your reference.

Schedule 11 - Tuition worksheet
03:51

Each Province will have its applicable forms and schedules which must also be filed with the T1 return. In most cases, the tax credits available are very similar to the Federal tax credits. Not all the forms are reviewed, but a general overview is given.

Provincial forms and schedules
03:22

Understanding how the slip reporting system works is vital to the study of the Canadian tax system. This tutorial summarizes how slips are filed by institutions and what the CRA does with them once they are filed.

Slip system of reporting income
06:36

The most common tax slip. This slips is received by employees and contains all the pertinent information related to payroll for an individual

The T4 slip
04:12

This is a bit of a catch-all slip. It can contain a number of sources of income and taxable benefits including research grants, medical premiums, retiring allowances, pensions and superannuations, etc.

The T4A slip
02:05

If you received benefits under the Employment Insurance program, then you will received this slip which reports the benefits paid to you and income tax withheld, among other items.

The T4E slip
02:13

This slip reports contract payments made to an individual. It typically is issued by contractors or companies who make payments to individuals who are not on a company's payroll

The T5018 slip
03:25

This slip reports any benefits paid from social assistance programs and the WSIB.

The T5007 slip
01:28

The two most common slips issued to seniors. The T4a(P) slip reports income received from the Canada Pension Plan (CPP). The T4A (OAS) reports Old Age Security payments and Guaranteed Income Supplements paid (GIS) to a retired individual.

The T4A (P) and T4A (OAS) slips
03:13

Any payments and/or withdrawals from an RRSP are reported on this slip. Also reported are payments to an estate upon the death of an individual.

The T4RSP slip
03:28

This slip reports retirement income payments out of a Registered Retirement Income Fund. Also reported are amounts deemed received by the estate or beneficiaries of someone who was deceased in the year.

The T4RIF slip
02:56

Investment income paid out of a trust (such as mutual funds, estates, etc.) are reported on the T3 slip. Interest, dividends, foreign income and capital gains are the most common types of income reported on these slips.

The T3 slip
04:55

The T5 slips reports income paid from corporations (commonly financial institutions) relating to investments. Interest and dividends are the most common types of income paid from these organizations and reported on the T5 slip.

The T5 slip
03:43

A complicated "slip" which reports income paid from Partnerships including flow-through shares (a common type of investment in today's environment).

The T5013 slip
04:43

This slip is issued by institutions and corporations to report income from the sale of shares or other securities. Also included on some slips is gain or losses on sale of bonds. Typically the income is reported on Schedule 3 of the return, but may include other types of income as well.

The 5008 slip
03:31

The tuition slips reports the amount of tuition paid in the year by a student along with the number of months in full-time and part-time attendance. The numbers reported on this slip are directly reported on Schedule 11 of the T1 return.

The T2202A slip
05:51

A relatively new slip which reports payments from the UCB program (Universal Child Benefit) and the Working Income Tax Benefit program.

The RC62 and RC210 slips
03:21
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Employment Income & Deductions
24 Lectures 01:44:09

This brief tutorial discusses the topic areas we will be reviewing in this sections. It gives a brief overview of employment income and the issues related to reporting this type of income on tax returns.

Also attached to this introductory tutorial is the CRA's Employment Expense Guide that you can use for reference and research. The practical elements and application of these rules are covered in later tutorials.

Introduction to employment income and deductions
02:46

This tutorial discusses what is covered by employment income. We go through some issues related to reporting employment income.

Available for download here is the CRA Guide T4130 - Taxable Benefits & Allowances.

This guide is used by employers to determine what benefits and allowances are taxable and not taxable. Studying this guide will provide you with a solid foundation of what needs to be reported on T4 slips and the personal tax return

Employment income - What is included
05:04

A detailed example of how to report the information in a T4 slip onto the personal T1 tax return. We go through entering a sample T4 on tax software and analyzing which lines and schedules are involved on the T1 return.

Recording employment on the T4 slip and T1
07:19

Certain box numbers can cause some problems when entering T4's onto a tax return. In this tutorial we examine some of the common mistakes encountered when entering employment income from T4 slips.

Items to watch for on the T4 slip
07:21

Certain amounts received from employers are recorded not he T4A slip. This tutorial examines some of the amounts you will come across along with how to report them properly on the T1 return.

Employment amounts on a T4A slip and recording them on the T1
05:42

Jobs that involve tips and gratuities are a subject that raises lots of questions and confusion in the tax realm. In this tutorial we answer some of these questions are try to clear up some of the problem areas.

Casual labour and odd jobs
05:47

Now that everything is more clear with the issues related to tips and gratuities, this tutorial will show you exactly how to report them on the tax return.

Reporting tips, odd jobs and labour on the T1 return
02:16

This tutorial discusses some of the tax issues related to these types of programs and benefits, as well as how to report them.

Wage-loss replacement plan reporting
02:33

Employees make contributions to the Canada Pension Plan and pay premiums for Employment Insurance. These can be claimed as tax credits. This tutorial shows you how to claim the credits.

CPP and EI premiums and tax credits
04:16

It is not uncommon for people to pay too much for CPP and EI premiums. If you have over contributed to either programs, you can claim back the amount you over paid by filling out the T2204 which will be reviewed.

Filling out the T2204 for CPP and EI overpayments
03:06

Employees are limited with what they can claim as expenses. This tutorial clarifies some of the misconceptions related to expenses and write-offs in this area.

You can download the CRA Employment Expense Guide - RC4044(E) for a breakdown of Employment expenses and the rules regarding who can claim expenses and what is deductible and non-deductible.

This guide will provide you with a solid foundation and understanding as per the CRA.

Employment expenses - What cannot be claimed
02:38

Now that we know what cannot be written-off, we'll look closely at who is entitled to claim employment expenses on their tax returns and the process they have to go through in order to do so.

Employment expenses - Who can claim them and how
03:58

In this tutorial we take a detailed look at this important tax form. We'll go through the sections of the form and the individual questions to ensure that employers fill out the form properly so that employment expenses can be claimed without issues with the CRA.

Attached for dowload to this lecture is the T2200 Declaration of Conditions of Employment form. This is the form that an employee must have signed and properly filled out by their employer in order to claim a deduction for eligible employment expenses.

Without this signed form, employment expenses cannot be deducted, no matter how related they are to earning employment income. In short, no form, no deduction.

The T2200 form - Review of the declaration of conditions of employment
07:11

Once a T2200 is obtained, an employee is eligible to claim employment expenses on the T777 form. Here we look at the form in some detail and provide tips on how to fill it out and file it properly.

Attached is a copy of the Form T777 Statement of Employment Expenses - This form reports and categorizes the deductible employment expenses on the tax return. This form must be filled out and filed with the tax returns of those individuals claiming employment expenses

The T777 form - Statement of employment expenses
03:56

One of the most common expenses when it comes to employment is vehicle expenses for those who have to drive to do their job. Here we look at what vehicle expenses are eligible and how to report them on the T777.

Employment expenses and deducting vehicle expenses
05:31

Some employees are required to work from home. This being the case they may be eligible to claim some expenses related to their home office. In this tutorial we look at the rules related to this area.

Home office expenses for employees
03:20

Now that we know the ins and outs of what can be deducted and the tax forms necessary, we'll look at an example of an actual T2200 and T777 and how they work together on the T1 return.

Example of a straight forward T2200 and T777
06:19

If employees are reimbursed for expenses, then this must be taken into account when determining how much to deduct on the tax return. Here we look at an example that included reimbursements.

Example of a T2200 and T777 with reimbursements
03:06

Individuals who are paid commissions as part of their compensation have additional expenses they are allowed to deduct over regular employees. Here, we will look at these additional allowable expenses

Commission salespeople
01:42

A good resource for employment income and deductions is Guide T4044. This guide goes into quite a bit of detail in most of the topics we discussed in this section of the course.

T3 20 CRA Guide T4044 For Employment Expenses
02:59

An example of these forms for a commissioned employee is reviewed. You will be able to see the difference with previous examples of regular employees.

Example of a T2200 and T777 for a commissioned salesperson
07:16

What do you need to file when you claim employment expenses? Do you have to send in all those receipts to the CRA? This tutorial answers this question and more.

Filing requirements for employment expenses
02:14

*NEW* Eligible and ineligible retiring allowances
03:59

*NEW* How to report eligible retiring allowances and the RRSP transfer
03:50
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Investment Income & Deductions
26 Lectures 01:40:01

The tutorial summarizes the investment income section of the course and what will be covered in the following tutorials.

Introduction to investment income and expenses
02:27

The types of investments that generate interest income are examined along with how the interest is reported on T-slips.

Interest income and interest producing investments
02:22

This video goes over the process of reporting interest income that is reported on T3 and T5 slips on the personal T1 return.

Reporting interest income from T3 and T5 slips
06:18

One of the common problem areas in tax preparation is the issue of how to report investment income from joint accounts on individuals' returns. This tutorial introduces the topic and problem area.

How to handle joint account and recording income properly
03:30

This tutorial provides examples of how to report joint interest on the personal T1 return. It includes areas to be aware of when reporting this income.

Reporting joint account interest on the T1 return
03:30

As previously studied, the Schedule 4 provides a breakdown of investment income and deductions. In t his video, we look at how the income is reported and summarized.

Interest income reported on Schedule 4 and the T1
03:34

Dividend income is analyzed along with the 2 different types of dividends that can be paid from Canadian corporations.

Dividend income and the different types of dividends
05:37

Ineligible dividends are examined along with an example of how to report the income from a T3 or T5 slip onto the T1 general return.

Reporting ineligible dividends income and tax credits
03:21

Similar in process to ineligible dividends covered in the previous tutorial, this video reviews eligible dividends and how they are reported from various slips.

Reporting eligible dividend income and tax credits
04:14

A big area when it comes to investment income and reporting other types of gains is the realm of capital transactions that give rise to capital gains and losses.

Introduction to capital gains and losses
02:32

We begin our study of capital gains and losses by reviewing the basic rules and how to calculate the amounts to report on the tax return.

Also provided here as supplementary material is the CRA Capital Gains guide for your further study.

Capital gain and loss tax rules
04:03

In this tutorial we provide an example of both a transaction giving rise to a capital gain, and another that resulted in a capital loss.

Examples of capital gain and loss calculations
03:46

Once the information necessary to calculate the capital gain or loss on a transaction is gathered and prepared, reporting the gain on the schedule 3 is required for the tax reporting.

Completing schedule 3 and reporting gains and losses on the T1
03:39

Things start getting a little bit muddied as we look at the situation where a number of shares of the same stock are purchased at different prices. How do you calculate the gain/loss? This video explains.

Calculating gains and losses on multiple purchases or lots
04:16

Mutual funds provide an interesting issue when it comes to determining capital gains and losses on their sale. This tutorial reviews the issue.

Issues with gains and losses on mutual funds
03:53

In this tutorial we provide an example of the disposition of mutual fund units that have paid a distribution.

Example of capital on mutual funds
04:30

As can be seen from previous tutorials, mutual fund sales can create problems with determining their cost. This tutorial shows you a website where you can go for help if you can't figure out what was the cost is for a mutual fund.

Complicating factors with mutual funds and where to find help
06:03

Capital gains are taxable in the year, but capital losses cannot be applied against other sources of income. So what happens with those losses? This tutorial explains.

Capital loss carryback and carryforwards
02:35

Here we provide an example of a capital loss carry back whereby capital losses incurred in the year, and capital gains tax was paid in the prior 3 years.

Capital loss carryback example
03:26

The logistics of how to claim a capital loss carry-back on your personal tax return is studied along with the necessary form (T1A) that needs to be filed.

Capital gains are taxable in the year, but capital losses cannot be applied against other sources of income. So what happens with those losses? This tutorial explains this farily common element of investment income and tax planning.

The form T1A Request for Loss Carryback is used to request the CRA to apply current year losses to prior years. Attached here is a copy of the current form.

Capital loss carryback using the T1A form
05:20

An important area when it comes to investment income is the attribution rules. That is, who has to report the income when money is spread around to avoid paying tax?

Introduction to the attribution rules
03:30

With proper planning, the attribution rules can be avoided by putting into play some simple procedures. This tutorial examines ways to get around the attribution rules.

Where the attribution rules will not apply
05:12

Any interest or other fees that were paid to directly earn income from investments can be deducted. This tutorial reviews these provisions.

Deducting carrying charges from your investment income
02:34

In this tutorial we go over the process of claiming investment deductions and carrying charges on the Schedule 4 and the T1 return.

Deducting interest expense if used to earn investment income
03:40

An example of Schedule 4 with deductions and how to report them is studied.

Filling out Schedule 4 properly to deduct investment expenses
02:09

*2016 UPDATE* - IMPORTANT changes on reporting the sale of principal residences
04:00
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Rental Income
23 Lectures 01:38:01

This tutorial summarizes the topics to be covered in the section and discusses some of the issues related to rental income.

We have attached the CRA Rental income guide that you can use as a reference for this module. It contains the CRA's most up to date information on rental income the related form T776

Introduction to rental income and expenses
01:47

A brief overview of rental income basics is provided.

Also included here for download is the CRA Rental Income Guide - RC4036(E). This is an in-depth guide issued by the CRA that deals with rental income rules. We will be covering the most important elements of this guide throughout this unit. We will be referring to this guide in certain tutorials.

Rental income basics
01:49

It can be more beneficial to classify income as business income rather than rental income for additional deductions. However, the rules must be adhered to.

Rental income or business income?
04:35

This tutorial goes over the tax form that is prepared when you have rental income to report on your tax return. A review of all the sections is given.

You can download a copy of the T776 Statement of Real Estate rentals here. This form must be filled out and filed with the personal tax return for anyone deriving income from real estate rentals.

The T776 Statement of Real Estate Rentals
03:44

There is a difference between these two methods. A description is given for both along with the rules that you need to be aware of.

The accrual and cash methods of reporting income
04:54

There are certain expenses that cannot be deducted from rental income. This tutorial goes over these expenses so that you don't make the mistake of claiming them when you shouldn't.

Rental expenses and what cannot be deducted
03:07

Perhaps the biggest expense when it comes to rental properties is interest. This tutorial goes over the rules related to interest expenses and how to claim them properly.

Interest on mortgages, loans and lines of credit
03:34

A number of direct expenses are deductible from your rental income. This tutorial shows you the most common expenses and what can be deducted.

Common expenses for rental properties - Direct expenses
02:55

There are some other expenses which you may be eligible to deduct. However, some of them are loaded with rules. This tutorial examines some of these other potential deductions.

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Other deductible expenses that you may be eligible to deduct
06:17

Another area of rental properties that creates some problems is big renovations and repairs. This tutorial explains the difference between the two and how they are treated for tax purposes.

Capital expense vs. repairs and maintenance
03:45

A good place for guidance when it comes to the issue of repairs vs. capital is the CRA guide. This tutorial goes over the relevant section in the guide and how it can be used for further clarification.

CRA administrative guidelines on repairs and capital
04:12

Maybe people rent out a portion of their home, such as a basement apartment. In this tutorial we go over the reporting of the income and related expenses.

Renting out a portion of your home
03:10

An example of the rental form T776 is provided where a portion of the home has been rented out to a tenant.

Preparing the T776 for a property rented out and used for personal purposes
04:40

One of the common questions asked is whether or not renting out a portion of your home will affect the principal residence exemption when you sell your home. This tutorial answers this question and examines the tax implications.

Selling your home when you've been renting out a portion
03:57

Similar rules apply to renting out a cottage or vacation property as those discussed for renting out a portion of your home. In this tutorial, we look at some of the issues involved.

Renting out a vacation or other personal property
03:31

This tutorial provides an example of how to fill out the T776 when you rent out a vacation property or cottage for part of the year.

Preparing the T776 when a vacation or cottage property is rented out
03:20

In this tutorial we look at what is also referred to as depreciation and how to account for capital purchases, appliances, etc.

Introduction to Capital Cost Allowance (CCA)
03:26

A calculation is provided and explained so that you get a good grasp of the rules and calculations related to CCA.

Calculating capital cost allowance (CCA)
04:48

Capital cost allowance is disclosed on a separate table that forms part of the T776, Here, we look at how to fill out this table properly, as well as how to deduct the CCA accurately on the rental income form.

Filling out the CCA schedule on the T776
04:42

There are other rules that you need to be aware of when it comes to CCA and rental properties specifically. We review these rules here.

Additional CCA rules for rental properties
06:45

Selling a rental property will result in tax implications and the calculation of a capital gain. This tutorial reviews the calculations along with how to disclose the sale on Schedule 3 of the tax return.

Example of a capital gain on sale and disclosure on Schedule 3
05:31

If you have been claiming CCA on the rental property itself, you could be in for a shock when you sell the property. In this tutorial we look at how CCA could come back to bite you later.

Terminal losses and example of recapture of CCA
08:43

Finally, we take a cursory look at some of the advanced issued that can arise with rental properties and their disposition. In these areas it is best to consult a tax expert and is beyond the scope of this course. However, it is important to understand when they may arise.

Other advanced issues you should be aware of
04:49
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Deductions
23 Lectures 01:49:10

Deductions are an important part of preparing tax returns. After all, who doesn't want to claim the maximum allowable deductions in order to lower their tax bill? This tutorial gives you a brief overview on what will be covered in the course.

Introduction to other deductions
02:42

RRSP's are a huge part of the Canadian tax landscape. This tutorial gives you an overview of what they are and how they work.

The attached guide (T4040) is an official CRA issued guide covering a number of registered pension plans including the RRSP. It is a good idea to review and study this guide thoroughly, as Registered plans and related questions are some of the most common questions raised by taxpayers and clients.

RRSP basics
03:13

Often, people are confused or unsure as to what they are allowed to contribute to their RRSP. This tutorial tells you where to find an accurate number for your (or your clients') RRSP contribution limit for the year.

Where do I find my RRSP contribution limit?
03:38

A review of the very important RRSP contribution rules is covered.

RRSP contribution rules
03:02

Do I have to deduct the full RRSP contribution in the year that I make it? Can I save some for next year? This tutorial answers these questions.

Undeducted RRSP contributions
04:00

A concrete example will help you understand the concepts covered regarded undeducted contributions.

Example of undeducted RRSP contributions
04:42

Determining if you have any undeducted contributions can be a bit tricky. Luckily the CRA reports this number and tracks it for you.

Where the CRA reports your unused or undeducted RRSP contributions
04:28

This tutorial covers the topic of over-contributions to an RRSP.

Overcontributions to an RRSP
03:28

Again, a good example will help illustrate the concepts. In particular the difference between over-contributing to an RRSP and the undeducted RRSP rules covered in a previous tutorial.

Example of overcontributions to an RRSP
04:40

If you are a first time home buyer, you may be eligible to withdraw money from your RRSP and pay it back over time. This lecture gives you the necessary details on the plan.

Withdrawing money from the Home Buyers Plan (HBP)
05:47

What happens if I forgot to pay back my RRSP on the Home Buyer's Plan withdrawal I made? This tutorial goes through those rules, and that process.

Not repaying an amount owed under the HBP and Schedule 7 disclosures
04:31

Certain employees who are part of a pension plan at work may have to report their pension adjustment (usually found on their T4 slips). This tutorial outlines what you need to know for pension adjustments.

Reporting the Pension Adjustment (PA) on the T1
03:31

Union and professional dues are a common deduction that many Canadian taxpayers are entitled to.

Deducting union and professinoal dues
03:52

If you have children and incur day care expenses in order for you to work, then you may be eligible to deduct child care expenses. There are quite a few rules to keep track of and this tutorial outlines them.

Child care expenses - rules and eligibility
08:44

In order to claim child care expenses, you will need to file the T778 form with your tax return. This tutorial explains what is needed on the form and how to fill it out.

Filling out the form T778 for child care expenses
08:29

Spousal and child support payment rules are covered. This area of tax can get a little bit complicated, but the general rules are reviewed.

Rules for spousal and child support payments
07:03

*2016 UDATE* Pension Income Splitting for Seniors - The 1032 Election
05:06

The rules covering Allowable Business Investment Losses are covered. If you have a large ABIL to claim however, you may want to consult with a tax professional as these are often scrutinized by the CRA>

Allowable Business Invest Loss (ABIL) rules
05:03

This tutorial gives you an overview of how to claim the ABIL's on the tax return and the information you will need to provide.

Deducting ABILs on the T1 tax return
04:55

*NEW* Moving expenses - Rules and criteria
04:16

*NEW* Eligible moving expenses you are entitled to deduct on the T1
04:42

*NEW* Ineligible moving expenses that you are unable to deduct
02:43

*NEW* Using the Simplified Method for travel and filling out the T1-M form
06:35
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Tax Credits
30 Lectures 02:16:38

Tax credits are an important area of tax planning and preparation. This tutorial reviews what we will be covering in this module.

Introduction to tax credits
03:11

This tutorial covers what you need to know about tax credits in general and how to go about claiming them properly

General info the application of tax credits
03:06

You've probably heard of what is sometimes referred to as the "tax free zone" ... well people are referring to the Basic Amount which is an amount everyone is entitled to without paying tax. Also explained is the Canada Employment amount for those people who have employment income.

Here are the basic amounts for the 2013 - 2016 tax year for your reference.

2016 - $ 11, 474

2015 - $ 11,327

2014 - $ 11,138

2013 - $ 11,038

The Canada Employment amounts for the 2013 - 2016 tax years are as follows:

2016 - $ 1,161

2015 - $ 1,146

2014 - $ 1,127

2013 - $ 1,117

The basic amount and Canada employment amount
02:12

The Age Amount Credit for the 2013 - 2016 tax years are as follows:

2016 - $ 7,125

2015 - $ 7,033

2014 - $ 6,916

2013 - $ 6,854

For 2016, the age amount is reduced when income is over $ 35,927 and is completely eliminated when income exceeds $83,427.

For 2015, the age amount is reduced when income is over $ 35,466 and is completely eliminated when income exceeds $82,353.

For 2014, the age amount is reduced when income is over $ 34,873 and is completely eliminated when income exceeds $80,980.

The age amount credit
03:03

Spouse or Equivalent to Spouse amounts for the 2013 - 2016 tax year for your reference.

2016 - $ 11,474

2015 - $ 11,327

2014 - $ 11,138

2013 - $ 11,038

This credit amount is normally the same as the basic personal amount from the previous lecture. The amounts will differ by province at the Provincial level

The spouse or equivalent to spouse credit
03:24

Here are the Eligible Dependant Credits for the 2013 - 2016 tax year for your reference.

2016 - $ 11,474

2015 - $ 11,327

2014 - $ 11,138

2013 - $ 11,038

This credit amount is normally the same as the basic personal amount and the equivalent to spouse, common-law spouse amounts. The amounts will differ by province at the Provincial level.

To simplify, the basic amount and credits for spouses or other dependants are the same amount.

Amount for eligible dependant credit
04:49

Amount for children for the 2013 and 2014 tax year for your reference.

** This  is an archive tutorial and slide as the children’s credit was eliminated in for the tax years 2015 and future years. The credit is still applicable for any previous years for tax returns you are preparing **

2016 - Nil

2015 - Nil


*ARCHIVE* Updated - Amount for children tax credit - eliminated
02:34

CPP & EI Tax Credit Amounts

The CPP and EI tax credits that are eligible to be claimed will depend on how much you (or the taxpayer) paid from their various sources of employment (or self-employment in the case of CPP). There are maximum amounts that are payable (and therefore claimable as a credit) on a year to year basis.

The maximum CPP and EI credits for 2016 are as follows:

CPP maximum - $ 2,544.30

EI maximum - $ 955.04


The maximum CPP and EI credits for 2015 are as follows:

CPP maximum - $ 2,479.95

EI maximum - $ 930.60


The maximum CPP and EI credits for 2014 are as follows:

CPP maximum - $ 2,425.50

EI maximum - $ 913.68

CPP and EI premium tax credits
03:01

The public transit amount
03:41

Children Fitness Tax Credit for the 2013 - 2016 tax year for your reference.

2016 UPDATE - This credit has been eliminated for 2017 and future years. 2016 will be the last year this credit can be claimed.

2016 - $ 500 per child

2015 - $ 1,000 per child

2014 - $ 1,000 per child

2013 - $ 5000 per child


The Prescribed Program criteria from CRA

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/365/prgrm-eng.html 

The children's fitness credit
04:18

Eligible Adoption expenses for the 2013 – 2016 tax year for your reference.

2016 - $ 15,453

2015 - $ 15,255

2014 - $ 15,000

2013 - $ 11,669

This tax credit was substantially increased in the 2014 Federal budget.

CRA Guidance - http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/313/lgbl-eng.html 

Adoption tax credit
03:31

Pension Income Credits for the 2013 to 2016 tax year for your reference.

2016 - $ 2,000

2015 - $ 2,000

2014 - $ 2,000

2013 - $ 2,000

This credit has remained at $2,000 for quite some time. The Provincial amounts differ across all the provinces.

Pension income credit
03:49

The Caregiver Amount Tax Credit for the 2013 - 2016 are:

2016 - $ 4,667

2015 - $ 4,608

2014 - $ 4,530

2013 - $ 4,490

For 2016, the credit is reduced when the relative's income exceeds $15,940. It is completely eliminated when the relatives income exceeds $ 20,607. These amounts differ substantially from province to province for the equivalent Provincial tax credit.

For 2015, the credit is reduced when the relative's income exceeds $15,735. It is completely eliminated when the relatives income exceeds $ 20,343.

For 2014, the credit is reduced when the relative's income exceeds $15,334. It is completely eliminated when the relatives income exceeds $19,824. 

The caregiver amount tax credit
05:31

Children Fitness Tax Credit for the 2013 - 2016 tax year for your reference.

2016 UPDATE - This credit has been eliminated for 2017 and future years. 2016 will be the last year this credit can be claimed.

2016 - $ 500 per child

2015 - $ 1,000 per child

2014 - $ 1,000 per child

2013 - $ 5000 per child

*ARCHIVE* 2016 Update - Children's fitness tax credit
02:43

Children Art Tax Credit for the 2013 - 2016 tax year for your reference.

This credit has been eliminated for 2017 and future years. 2016 will be the last year this credit can be claimed.

2016 - $ 250 per child

2015 - $ 500 per child

2014 - $ 500 per child

2013 - $ 500 per child


CRA Guidance & Eligible Program

http://www.cra-arc.gc.ca/artscredit/ 

*UPDATED* Children's art tax credit
03:50

The Disability Amount Tax Credit for the 2013 - 2015 are:

2016 - $ 8,001

2015 - $ 7,899

2014 - $ 7,766

2013 - $ 7,697

The disability tax credit and how to claim
05:14

Reporting the DTC on Schedule 1 and provincial forms
03:07

Transferring the DTC to an eligible person
03:32

Interest tax credit on student loans
04:34

2016 Full-Time & Part-Time Tuition Amounts

Education full-time amount - $ 400 per month

Education part-time amount - $ 120 per month

Textbooks full-time amount - $ 65 per month

Textbooks part-time amount - $ 20 per month

** UPDATE – For 2017 and future years, the education and textbook amount credits have been eliminated. However, any carry forwards from previous years will still apply **

  For 2016, the credits can still be claimed for tuition and attendance paid up to December 31, 2016

Tuition, education and textbook credits and the T2202A
06:27

Claiming tuition, education and textbook credits on Schedule 11
07:06

Tranferring tuition, education and textbook credits to parents or grandparents
09:16

Tranferring unused credits to a spouse
04:59

Claiming donations and filling out Schedule 9
08:02

For 2016, the Medical expense tax credit is for medical expenses that are in excess of the lesser of the following two amounts:

- 3% of net income

- $ 2,237

For 2015, the Medical expense tax credit is for medical expenses that are in excess of the lesser of the following two amounts:

- 3% of net income

- $ 2,208

For 2014, the Medical expense tax credit is for medical expenses that are in excess of the lesser of the following two amounts: 

- 3% of net income

- $ 2,171

Claiming medical expesenses, rules and eligibillity
06:52

Medical expenses credit calculation on the schedule 1
06:03

Medical expenses for other dependants
04:39

Refundable vs non-refundable tax credits
04:08

Calculating CPP and EI overpayments on the T2204 form
04:46

2016 UPDATE: A useful reference for tax credits available on the web
05:10
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Business Income
22 Lectures 01:46:53

This module covers what you need to know on business and professional income. We will be examining the T2125 Statement of Business Activities along with the allowable deductions and how to claim them properly.

As supplementary material, we have included the CRA Business & Professional Income Guide for your reference and additional study.

Introduction to business income
03:15

A review of some of the filing issues you will come across for business income.

Business income reporting issues
03:33

This tutorial reviews the T2125 Statement of Business Activities which is the form that is filed with tax returns to disclose business income and deductions to the CRA.

In this video, we review the statement used on the T1 tax return to report business activity. A brief overveiw of the form will be provided along with an examination of each important section.

Attaced is a PDF of the Statement of Business Activities. It may be a good idea to print out this form and follow through wih the rest of the tutorials in this course.

The T2125 Statement of business activities
07:49

One of the main deductions every business owner is entitled to is vehicle expenses. The next series of tutorials cover the rules and what you need to know to claim them properly.

Deducting vehicle expenses
02:20

An example is provided to help you better understand how to deduct vehicle expenses.

Example of vehicle expense calculation
03:32

If you are ever reviewed or audited by the CRA, they will likely ask for a mileage log which you should be keeping. This lecture reviews the issues with mileage logs.

Maintaing a mileage log
05:39

Understanding what you can claim as advertising and promotion for business purposes.

Advertising and promotion expenses
03:27

This is an often asked about expense for many new small business owners, Here we review the rules on deducting meals and entertainment.

Meals and entertainment
04:22

It's a fact of life in the business world. Sometimes, customers will be unable or unwilling to pay and you will have to write off what they owe you.

Claiming a bad debt expense
04:52

Insurance expenses are covered along with the different types of insurance charges and what should be claimed on this line item

Insurance expense
02:31

Interest can be a big expense on starting and running a business. This tutorial reviews interest as a deduction and how to claim it on the T2125.

Interest expense
02:37

A pretty straight-forward expense. Here we review some tips on claiming office expenses.

Office expense
01:50

Many rookie tax preparers make mistakes when it comes to claiming rent. Here, we look at the most common mistakes and what qualifies as a deductible rent expense.

Rent expense
01:41

Supplies are quite different from office expenses. Here we review what should be claimed as supplies and how they differ from office expenses.

Supplies
01:56

For a business with employees, salaries and wages could be one of the biggest expenses in the business. In this tutorial we review what can be claimed and where to find the information.

Salaries and wages expense
07:24

Certain purchases cannot be written off entirely in the year they are purchased. Here we begin our study of capital assets and claiming depreciation, or CCA in tax terms, on these types of expenses.

Capital Cost Allowaance (CCA) rules for depreciation
07:33

The most common classes for CCA purposes are reviewed and discussed.

CCA classes and rates of write-off
08:40

This tutorial begins our review of how to claim CCA expenses on the T2125 Statement of Business Activities.

Claiming CCA on the T2125 and filling out Area A - E
06:25

If you end up selling or disposing of an asset for less that it's "on the book" for, then you can claim a terminal loss.

Terminal loss rules and how to calculate and show on T2125
04:19

What happens if you end up selling an asset you have been depreciating for more that its tax cost? This is known as recapture which is studied in this lecture.

Recapture rules and how to calculate and show on T2125
07:37

Claiming home office expenses may not be as easy as you think. This tutorial goes over the rules you need to know to claim the properly.

Home office expenses - who can claim and rules
09:05

Claiming home office expenses on the T2125 form is reviewed in this tutorial.

How to claim home office expenses on the T2125
06:26
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2016 UPDATE: Federal Budget 2016 & Important Info
4 Lectures 16:49
2016 Update - A Look Ahead At Preparing 2016 Tax Returns
00:21

New Liberal government tax changes for 2016 and future years
07:37

Families elimination of the family tax cut and fitness credits
03:30

New rules and credits in the education landscape
05:21
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Conclusion
3 Lectures 09:29

Download the attached PDF file for some additional resources including CRA web sites with additional videos and form/publication content, information on tax software and more.

Additional resources
2 pages

Thank you for taking the Canadian Personal Income Tax Course. All the best on your journey to personal tax knowledge.

Conclusion and Thank You!
01:58

BONUS - Additional Courses Including Corporate Tax & Coupons
07:31
About the Instructor
Ian DiNovo, CPA, CGA
4.6 Average rating
231 Reviews
3,011 Students
5 Courses
SBC Knowledge Systems Inc.

Ian DINovo is a professional accountant and Director of SBC Knowledge Systems Inc. He has been practicing accounting and offering independent financial and business advice for over 15 years.

He is the creator of a number of courses dealing with business, tax and investment matters that are designed to make difficult topics easy to understand for everyone.