Autoplay
Autocomplete
Previous Lesson
Complete and Continue
Preparing Canadian Income Tax Returns - Introductory Course
MODULE 1 - COURSE ADMINISTRATION, GUIDANCE & ADVICE
Welcome to the Personal Tax Course! Take at your own pace and keep coming back for refreshers (2:34)
1.1 - WELCOME TO THE COURSE - HOW TO LEARN PERSONAL TAX
The teaching approach and learning methodology for this course (6:09)
Course navigation and addressing common tech areas for troubleshooting (7:36)
A note on Provincial taxes, returns and associated schedules (4:13)
COURSE NOTES & MANUAL - Download course notes and manual and how to use them (4:17)
Additional comments and suggestions on how to use the notes
** ANNUAL UPDATES ** - Instruction video on how to access this year's current update (4:35)
1.2 - COURSE ADMINISTRATION - REFUND POLICY - CERTIFICATES - QUESTIONS
Asking the right questions and what I cannot answer (3:26)
Administration - Course Payments, Refund policy, certificates of completion (6:25)
Emailing students important updates and new courses - Put us on your safe list! (2:03)
1.3 - TAX SOFTWARE: EVERYTHING YOU NEED TO KNOW & STRATEGIES
Common questions on tax software and what you need (4:40)
TAX SOFTWARE - Student Version of Profile Tax Suite - Download & Registration Instructions (4:41)
TAX SOFTWARE - Additional video and troubleshooting on Intuit Profile (7:49)
MODULE 2: THE CANADIAN INCOME TAX SYSTEM
Introduction to this module and what we'll be covering in this unit (2:40)
2.1 - HOW THE CANADIAN TAX SYSTEM WORKS
Who must file a tax return (3:23)
Why you should file an income tax return (5:46)
The Canadian tax system and how it works (3:42)
Deadlines for filing personal tax returns (6:00)
Filing penalties and interest for late filed returns (4:41)
Instalment payments and when they should be made (3:53)
E-filing of personal tax returns and the e-file system (4:10)
The marginal tax rate system in personal tax (5:14)
Example illustrating marginal vs. personal tax (6:06)
Another important tax concept - Tax deductions vs. tax credits (4:51)
Examples of a tax credits and tax deductions (4:14)
Notice of Assessments and their importance (5:09)
An example of a Notice of Assessment (NOA) (3:51)
Notice of Reassessments issued by CRA and their Importance (4:04)
Example of a Notice of Reassessment (4:38)
Some resources on Provincial tax brackets for your reference (5:02)
CRA Online services and an overview of the system (4:36)
2.2 - OVERVIEW OF THE PERSONAL T1 RETURN & SCHEDULES
Introduction to tax forms and information slips (2:49)
The T1 General Return (10:48)
Schedule 2 - Amounts transferred from spouse (2:41)
Schedule 3 - Capital Gains & Losses - 2024 update (8:12)
Principal Residence Dispositions - Schedule 3 - 2016 & Future Years - Disclosing Sale of Principal Residence (2:29)
Schedule 5 - Details of dependants (3:49)
Schedule 6 - Canada Workers Benefit - Application for the CWB Benefit (3:03)
Schedule 7 - RRSP worksheet and activity (4:38)
Schedule 8 - Canada Pension Plan (CPP) Contributions & Overpayment (4:03)
Schedule 9 - Donations and Gifts (2:08)
Schedule 11 - Tuition worksheet (2:43)
Schedule 12 - Multigenerational Home Renovation Tax Credit (2:29)
Schedule 13 - Employment Insurance Premiums on Self Employment (2:06)
Schedule 15 - FHSA Contributions, Transfers and Activities (2:39)
Provincial Forms and schedules and web link to find information on Provincial credits (6:17)
2.3 - OVERVIEW & EXPLANATION OF TAX SLIPS
Slip system of reporting income on the T1 personal return (6:33)
Reporting information from T-slips into tax software (2:46)
The T4 slip - The statement of employment income (6:40)
The T4A slip - Statement of Pension, Retirement, Annuity, and Other Income (4:10)
The T4E slip - Employment insurance and other benefits (3:34)
The T5018 slip - Statement of Contract Payments (3:39)
The T5007 slip - Statement of benefits - Social security (2:40)
The T4A(P) and T4A(OAS) slips - CPP and OAS retirement pension slips (4:34)
The T4RSP slip - Statement of RRSP Income (4:07)
The T4RIF slip - Statement of Income From a Registered Retirement Income Fund (3:27)
The T4FHSA Slip - First Home Savings Account Statement (2:26)
The T3 slip- Statement of Trust Income Allocations and Designations (5:28)
The T5 slip - Statement of Investment Income (4:50)
The T5013 slip - Statement of Partnership Income (3:54)
The 5008 slip - Statement of Securities Transactions (4:59)
The T2202A slip - Tuition and enrolment certificate (3:49)
The Auto Fill my Return service offered by Canada Revenue Agency (6:50)
MODULE 3: EMPLOYMENT INCOME & DEDUCTIONS
Introduction to employment income and employment expenses (2:09)
3.1 - EMPLOYMENT INCOME & RELATED TAX CREDITS
Employment income - What is included (7:17)
Recording employment on the T4 slip and T1 (8:37)
Items to watch for on the T4 slip and how to avoid common errors (5:22)
Employment amounts reported on the T4A and T4PS slips (3:34)
Reporting amounts for casual labour, tips/gratuities and odd jobs when not reported on a slip (7:08)
Reporting tips, odd jobs and labour on the T1 return (4:22)
Wage-loss replacement plan reporting (4:42)
CPP and EI premiums and tax credits (7:31)
Filling out the Schedule 8 and T2204 for CPP and EI overpayments (4:30)
3.2 - DEDUCTING EMPLOYMENT EXPENSES
Employment expenses - What cannot be claimed (4:07)
Employment expenses - Who can claim them and how (5:01)
The T2200 form - Review of the declaration of conditions of employment (7:15)
The T777 form - Statement of employment expenses (4:07)
An overview and the framework for deducting employment expenses on the T1 (5:11)
Example of a simple T2200 and T777 with vehicle expense deductions (8:08)
Overview of the two different types of vehicles allowances and tax implications (3:30)
What if a vehicle allowance is received? - how to factor in reimbursements (4:29)
What if a non-taxable kilometre allowance is received from the employer? (5:20)
An overview of home office expenses - What you can claim and what you cannot claim (5:50)
Criteria and process for deducting home office expenses for employees (5:59)
Example of home office expense deductions on the T2200 and T777 (3:44)
Example of a straight forward T2200 and T777 with other expenses (7:05)
Example of a T2200 and T777 with reimbursed expense (8:19)
Additional eligibility for expenses for commissioned salespeople (6:04)
Example of a T2200 and T777 for a commissioned salesperson (7:28)
Expenses that you cannot deduct as an employee and other various items to be aware of (8:36)
Filing requirements for employment expenses - What you need to file with CRA (2:37)
CRA Guide T4044 For Employment Expenses (2:44)
3.3 - THE GST/HST REBATE & OTHER EMPLOYMENT TAX CREDITS
Claiming the GST/HST rebate and review of the eligibility requirements to get his benefit (3:26)
Example of the process for claiming the GST/HST rebate on the tax return (7:48)
New for 2022 - Overview of the Labour Mobility Tax Deduction for 2022 (7:48)
MODULE 4: INVESTMENT INCOME & DEDUCTIONS
Introduction to investment income and expenses (3:59)
4.1 - INVESTMENT INCOME - REPORTING INTEREST & DIVIDENDS
Interest income and interest producing investments (4:28)
Reporting interest income from T5 slips (3:28)
How to handle joint account and recording income properly (5:14)
Reporting joint account interest on the T1 return (3:06)
Best practice for allocating and reporting various percentage of income reported on T-slips (6:55)
Dividend income and the different types of dividends (6:43)
Reporting ineligible dividends income and tax credits (4:20)
Reporting eligible dividend income and tax credits (4:16)
4.2 - INVESTMENT INCOME - REPORTING CAPITAL GAINS & LOSSES
Introduction to capital gains and losses (4:02)
Capital gain and loss tax rules (5:22)
Proposed capital gains inclusion rate increase to two-thirds - History of the new legislation (5:15)
The proposed rules for 2024 that were eliminated but the Schedule 3 is still changed (5:31)
Examples of capital gain calculation - Example of taxpayer selling their cottage (3:37)
Examples of capital gain and the new two teir system proposed for 2026 (1:59)
Completing schedule 3 and reporting capital gains on the T1 (4:46)
Reporting capital losses on the Schedule 3 and carry-forward balances (5:35)
Calculating gains and losses on multiple purchases or lots (3:52)
Issues with gains and losses on mutual funds (3:54)
Example of capital gain on mutual funds (4:32)
Complicating factors with mutual funds and where to find help (6:04)
Capital loss carryback and carryforwards (2:58)
Capital loss carryback example & how to fill out the T1A form (7:13)
4.3 - TAX REPORTING FOR PRINCIPAL RESIDENCE DISPOSITIONS
The Principal Residence Exemption (PRE) formula and how it works (3:43)
Reporting on the sale of principal residences and claiming Principal Residence Exemption (5:23)
Example showing the disposition of the principal residence on the T1 (6:30)
New for 2023 & Future Returns - The Property Flipping Rule for disposition of residences in 2023 and future years (3:52)
4.4 - DEDUCTING CARRYING CHARGES & OTHER INVESTMENT INCOME TOPICS
Introduction to the attribution rules (5:19)
Where the attribution rules will not apply (6:05)
Deducting carrying charges from your investment income (6:14)
Deducting interest expense if used to earn investment income (5:31)
How to look up what the marginal tax rate is on investment income (4:23)
4.5 - FOREIGN INCOME REPORTING & THE T1135
Foreign income reporting and verification - Introduction to the T1135 (5:48)
What is Specified Foreign Property and what needs to be reported (5:54)
What are the exemption to Specified Foreign Property that are not reported (5:38)
A review of the T1135 form and overview of the simplified and detailed methods (11:58)
Some common scenarios and how to report foreign income (10:14)
Checking verifying and reconciling the information on the T1 and the T1135 (6:50)
Some good news on detailed method reporting for many individuals (5:54)
MODULE 5: RENTAL INCOME & DEDUCTIONS
Introduction to rental income and expenses (3:49)
5.1 - RENTAL INCOME, LOSSES & DEDUCTIONS - REPORTING ON THE T776
The basics of rental income - What is captured in rental income? (3:51)
Rental income or business income? - There are significant differences (4:42)
The T776 Statement of Real Estate Rentals (6:16)
The T776 Statement of Real Estate Rentals - 2024 & future years (4:54)
What if there is more than one rental property? Do I need forms for all of them? (4:27)
The accrual and cash methods of reporting income (6:48)
5.2 - DEDUCTING RENTAL EXPENSES ON THE T776 STATEMENT OF REAL ESTATE RENTALS
Rental expenses and what cannot be deducted (7:04)
Interest on mortgages, loans and lines of credit (5:04)
How to apply rental income losses on the tax return (6:29)
Common expenses for rental properties - Direct expenses (4:25)
Other deductible expenses that you may be eligible to deduct (7:31)
Capital expense vs. repairs & maintenance - what you can deduct vs what you capitalize (4:16)
CRA administrative guidelines on repairs and capital (4:38)
The rules for deducting motor vehicle expenses for rental income (8:01)
5.3 - RENTING OUT A PORTION OF YOUR HOME OR VACATION PROPERTY
Renting out a portion of your home and the expenses that can be deducted (3:17)
Preparing the T776 for a property rented out and used for personal purposes (6:49)
Selling your home when you've been renting out a portion (4:30)
Renting out a vacation or other personal property (4:00)
Preparing the T776 when a vacation or cottage property is rented out (4:54)
5.5 - RULES FOR CLAIMING TAX DEPRECIATION - CAPITAL COST ALLOWANCE (CCA)
Prefix to Capital Cost Allowance (New for 2022 & Forward) - Summary of recent changes to the rules (5:23)
Introduction to Capital Cost Allowance (CCA) (5:39)
New Accelerated Investment Incentive to consider and teaching approach (7:15)
The rules for calculating capital cost allowance (CCA) (4:02)
Filling out the CCA schedule on the T776 for the regular rules (3:09)
Applying the new AII rules on the CCA schedule on T776 - late 2018 & later years (5:03)
2022 Immediate Expensing Program - Rules and eligible assets (5:14)
2022 Immediate Expensing Program - Example of appliance purchase on T776 (4:11)
Combining the Immediate Expensing and AIIP Program Rules (4:55)
Additional CCA rules for rental properties (5:39)
Example of claiming CCA and the rules to stop losses (4:02)
Capital cost allowance on appliance and furniture (3:45)
Rules for claiming capital cost allowance (CCA) on land (3:20)
5.6 - SELLING RENTAL PROPERTIES - RECAPTURE OF CCA - TERMINAL LOSS
Example of a capital gain on sale and disclosure on Schedule 3 (4:11)
Selling a property when CCA was claimed as an expense - Recapture rules (3:27)
Example of reporting recapture of CCA on the T776 and tax return (6:33)
Terminal loss rules for CCA and application to rental properties (2:00)
Example of a terminal loss and how to report on the T776 and T1 (3:19)
Factors to consider when deciding whether to claim CCA and caution when advising clients (4:41)
5.7 - OVERVIEW OF OTHER MORE ADVANCES ISSUES
Other advanced issues you should be aware of (6:12)
Certain properties may have GST/HST implications - breakdown of the rules (6:15)
MODULE 6: TAX DEDUCTIONS
Introduction to other deductions (3:17)
6.1 - GENERAL TAX DEDUCTIONS INCLUDING SENIOR PENSION INCOME SPLITTING
Reporting the Pension Adjustment (PA) on the T1 (5:45)
Deducting union and professional dues (4:24)
Pension Income Splitting for Seniors - The 1032 Election to Split Income (6:23)
Example of pension income splitting for seniors and the T1032 (6:12)
6.2 - REGISTERED RETIREMENT SAVINGS PLAN BASICS (RRSP)
The basics of Registered Retirement Savings Plans (RRSP) (4:37)
Where do I find my RRSP contribution limit? (5:27)
RRSP contribution, withdrawal rules and annual RRSP contribution limits (8:35)
Example of RRSP contributions and how to report on the T1 (7:39)
Undeducted RRSP contributions (4:47)
Example of undeducted RRSP contributions (4:30)
Where the CRA reports your unused or undeducted RRSP contributions (3:01)
The rules for making spousal RRSP contributions (6:52)
6.3 - OVERCONTRIBUTING TO AN RRSP
Overcontributions to an RRSP and the adverse tax implications (3:17)
Example of overcontributions to an RRSP (4:40)
Where to find information on RRSP overcontributions (2:01)
6.4 - THE HOME BUYER'S PLAN (HBP) & THE LIFELONG LEARNING PLAN (LLP)
Withdrawing money from the Home Buyers Plan (HBP) (5:04)
How to report HBP repayments on the T1 return and Schedule 7 (4:33)
How to deal with HBP non-payments - partial payments and additional payments (6:41)
The Lifelong Learning Plan (LLP) program under the RRSP (4:59)
6.5 - CHILD CARE EXPENSES - REPORTING CHILD & SPOUSAL SUPPORT
Child care expenses - rules and eligibility (5:51)
Filling out the form T778 for child care expenses (7:26)
Rules for spousal and child support payments (3:56)
An example of how to report child support income and expenses on the T1 (4:47)
6.6 - MOVING EXPENSES
Moving expenses - Rules and criteria (4:16)
Eligible moving expenses you are entitled to deduct on the T1 (4:42)
Ineligible moving expenses that you are unable to deduct (2:42)
Using the Simplified Method for travel and filling out the T1-M form (6:35)
6.7- TAX-FREE FIRST HOME SAVINGS ACCOUNTS (FHSA)
New for 2023 & Future years- The Tax Free Home Savings Account (FHSA) (5:39)
FHSA REPORTING - Reporting deductions to FHSA accounts on the Schedule 15 and T1 return (4:01)
FHSA REPORTING - Withdrawing funds from an FHSA account (7:23)
MODULE 7: TAX CREDITS (REFUNDABLE & NON-REFUNDABLE)
Introduction to tax credits (3:26)
7.1 - INDIVIDUAL TAX CREDITS (REFUNDABLE & NON-REFUNDABLE
General information on the application of tax credits (5:33)
Useful resource & the difference between the tax credit and the actual tax savings (5:23)
How to claim tax credits on software on credits we have examined thus far (5:37)
Transferring unused non-refundable tax credits to a spouse (4:08)
Refundable vs non-refundable tax credits (4:31)
7.2 - INDIVIDUAL TAX CREDITS (NO TRANSFERS OR OPTIONS)
The basic amount and Canada employment amount (4:36)
Enhanced Basic Personal Amount (2020 & Future Years) (4:33)
CPP and EI premium tax credits (5:12)
Calculating CPP and EI overpayments on the T2204 form (2:42)
7.3 - DEPENDANT TAX CREDITS
The spouse or common-law partner amount (3:15)
Amount for eligible dependant credit (5:16)
The Canada Caregiver Amount (9:29)
The Canada Caregiver Amount - Supplementary Amounts (2:28)
7.4 - SENIORS TAX CREDITS
The age amount credit (3:01)
Pension income credit (5:06)
The Multigenerational Home Renovation Tax Credits - Who can claim it? (6:17)
The Multigenerational Home Renovation Tax Credit - Qualifying Renovations (8:08)
Multigenerational Home Renovation Tax Credit - Example of using the Schedule 12 to determine eligibility (7:44)
7.5 - STUDENTS TAX CREDITS
Interest tax credit on student loans (2:51)
Tuition tax credits and the recent changing landscape both Federally & Provincially (6:10)
Claiming tuition, education and textbook credits on Schedule 11 (5:56)
Tranferring tuition, education and textbook credits to parents or grandparents (4:01)
Example of how to transfer tuition to a parent or grandparent (5:26)
7.6 - FAMILY TAX CREDITS (OR INDIVIDUAL WITH PLANNING OPTIONS)
The disability tax credit and how to apply and claim the credit (4:37)
An example illustrating how to claim the disability tax credit (7:53)
Rules for transferring the disability tax credit to other individuals (3:49)
Example of transferring the DTC to an eligible person (4:34)
Rules for claiming the donation credit (5:54)
Claiming donations and filling out Schedule 9 (6:11)
Federal and provincial political donation tax credits (4:11)
Adoption tax credit (4:36)
7.7 - MEDICAL EXPENSES TAX CREDIT
Claiming medical expenses, rules and eligibility (4:23)
Medical expenses credit calculation (7:43)
Medical expenses for other dependants (2:21)
Example of claiming medical expenses for other dependants (4:45)
Eligible medical expenses, receipts and making sure proper records are kept (6:47)
7.8 - OTHER PERSONAL TAX CREDITS
The Home Buyers amount credit for first time home buyers (3:15)
Climate Action Incentive credit - Changes to 2021 and future years - No longer part of T1 (4:19)
The Volunteer Firefighters and Search and Rescue Volunteers tax credit (2:10)
BUSINESS INCOME & DEDUCTIONS - REPORTING BUSINESS INCOME ON THE T2125
Introduction to business income and what we'll be covering (3:53)
8.1 - INTRODUCTION TO BUSINESS INCOME & OTHER RELATED MATTERS
Business income reporting issues - personal businesses vs incorporated businesses (4:48)
A review of the personal tax business form - The T2125 Statement of Business Activities (5:15)
The basics of business income and what you need to report it properly (5:58)
Be aware of the pitfalls and dangers of large or consistent losses and hobby businesses (5:50)
Are the expenses reasonable? Or will they trigger a review or audit with CRA (6:10)
The GST/HST account and rules that you need to know for businesses (5:27)
Business registration and other accounts you may need to open (6:46)
8.2 - DEDUCTIBLE BUSINESS EXPENSES & RULES
Beginning our look at expenses and my approach to teaching the content (2:27)
Advertising and promotion expenses (4:34)
Meals and entertainment expenses and what to be aware of (4:35)
Claiming a bad debt expense when customers do not pay (2:57)
Insurance expense deduction (3:28)
Interest expense deduction (3:37)
Office stationary & supplies expense and Office expense (3:24)
Rent expense for leased premises and other equipment (2:56)
Expenses for properties that are owned by the business - Utilities - Property Tax (3:42)
Salaries and wages expense (4:00)
Example of reporting salaries and wages expense on Line 9060 (2:44)
A brief review of other deductible expenses and areas to watch out for (5:27)
Other expenses that cannot be categorized but you want to disclose separately (1:39)
8.3 - RULES & DISCUSSIONS ON VEHICLE EXPENSES
Rules for deducting vehicle expenses on business returns (2:56)
Example of vehicle expense calculation and using the Vehicle Expense Worksheet (5:48)
CRA prescribed limits for CCA and interest expense (5:02)
Maintaining a mileage log and its importance during a CRA review or audit (3:28)
The prescribed rate method and whether it can be used for proprietorships (3:46)
Some issues you may come across and how to deal with them (5:40)
An example illustrating the reporting of vehicle expenses for two vehicles (3:10)
8.4 - DEPRECIATION ON CAPITAL ASSETS - CAPITAL COST ALLOWANCE (CCA)
Revisiting the Immediate expensing rules covered in rental income module (3:59)
Capital Cost Allowaance (CCA) rules for depreciation (5:13)
CCA classes and rates of write-off (5:34)
Example of new asset purchases and filling out the CCA schedule (5:12)
The pool system of additions and disposals of assets and calculating CCA (4:07)
Some examples of how pool system works with dispositions and additions (5:59)
Terminal loss rules and how to calculate and show on T2125 (4:17)
Recapture rules and how to calculate and show on T2125 (3:32)
Example of claiming CCA on vehicles - Class 10 and 10.1 and prorating for business vs personal use (5:32)
Example of immediate expensing on a number of assets purchased (6:48)
8.5 - CLAIMING HOME OFFICE EXPENSES & GENERATING A USEFUL T2125
Home office expenses - who can claim and rules (4:05)
How to claim and report home office expenses on the T2125 and carry-forward reporting (5:51)
The cost of goods sold section and providing useful information (6:08)
Example of two T2125 statement with useful information vs. less useful (4:53)
8.6 - CANADA PENSION PLAN (CPP) & EMPLOYMENT INSURANCE (EI)
Canada Pension Plan (CPP) premium calculations on Schedule 8 the contributions for self-employed (8:42)
Employment Insurance (EI) benefits for the self employed (4:15)
Example of EI premium calculations and Schedule 13 for the self employed (4:42)
8.7- THE CANADA WORKERS BENEFIT (CWB)
The Canada Working Benefit refundable tax credit - formerly the WITB (5:39)
Example of Schedule 6 and filing for the Canada Workers Benefit (WCB) (5:58)
Canada Workers Benefit - Overview of the program and the RC 210 slip (5:15)
Canada Workers Benefit - Reporting the CWB prepayment on the T1 Return (7:04)
CONCLUSION & NEXT STEPS
Conclusion and Next Steps in Your Journey (5:24)
The T2200 form - Review of the declaration of conditions of employment
T2200 Declaration of Conditions of Employment.pdf
Download
T2200 Declaration of Conditions of Employment.pdf
Complete and Continue
Discussion
48
comments
Load more
48 comments