,canada ,cu/oms & ,rev5ue ,ag5cy ,t#djjc--,f>m+ ,9come #bjjc ,9 ,"o ,volumes ,pr9t pages #c-bec ,brl pages ;i-;xvii & #a-aeb ;i ,transcrib]'s note3 7,front cov]7 ,canada ,cu/oms & ,rev5ue ,ag5cy ,f>m+ ,9come #bjjc ,t#djjc7,e7 ,rev4 #jc ,transcrib]'s note3 7,9side front cov]7 ,2f ,y ,/>t ,is ? guide = y8 ,? guide is = y if y e>n$ 9come z a self-employ$ f>m] or z a "pn] 9 a f>m "pn]%ip4 ,x w help y calculate ! f>m+ 9come y w report on yr #bjjc 9come tax return4 ,if y >e "picipat+ 9 ! ,canadian ,agricultural ,9come ,/abiliz,n 7,,cais7 #a ,2f y />t program1 y h 6use ! ,f>m+ ,9come &! ,,cais ,program guide4 ,=ms & public,ns ,9 ! mi4le ( ? guide1 y w f9d a duplicate copy ( ,=m ,t#bjdb1 ,/ate;t ( ,f>m+ ,activities4 ,"?\t ! guide1 we al ref] 6o!r =ms & public,ns4 ,if y ne$ any ( ^!1 visit \r ,web site at _+www.ccra.gc.ca_:4 ,y may want 6bookm>k ? a4ress = easi] a3ess 6\r site 9 ! future4 ,y c al ord] =ms & public,ns 0call+ u at #a-hjj-iei-bbba4 ,:at's ,new = #bjjc8 ,transcrib]'s note3 7,! >1s \tl9$ 9 r$ w 2 9dicat$ by 8,/>t \tl9e0 & 8,5d \tl9e0 at ! left m>g947 #b ,:at's new = #bjjc8 ,/>t \tl9e ,automobile--,! def9i;n ( 8automobile0 has be5 *ang$ 6exclude c]ta9 types ( vehicles4 ,= m 9=m,n1 see 8,l9e #ihai--,motor vehicle exp5ses 7n 9clud+ ,,cca70 on page #ai1 &! *>t call$ 8,vehicle def9i;ns0 on page #bj4 ,pap] reduc;n--,ov] ! ye>s1 x has be5 \r practice 6automatic,y s5d \ ? guide 6a l>ge numb] ( cli5ts4 ,h["e1 z ! a3essibil;y (! ,9t]net & o!r 9=m,n te*nology 3t9ues 69cr1se1 we >e rcvg few] reque/s = pap] copies (! guide4 ,"!=e1 9 \r 3t9u+ ef=ts 6save pap]1 we h decid$ 6no l;g] automatic,y mail-\ ? guide1 2g9n+ next ye>4 ,y c view ! guide on \r ,web site at _+www.ccra.gc.ca_:1 z well z pr9t \ only ! relevant "ps y ne$4 ,alt]natively1 y may ord] a pap] copy f ! same ,web site1 or 0call+ #a-hjj-iei-bbba4 ,5d \tl9e #c ,d y ne$ m 9=m,n8 ,? guide uses pla9 language 6expla9 ! mo/ -mon tax situ,ns4 ,if1 af r1d+ ? guide1 y ne$ m 9=m,n ab f>m+ activities1 call \r ,busi;s ,5quiries l9e at #a-hjj-iei-eebe4 ,visu,y impair$ p]sons c get \r public,ns 9 brl1 l>ge pr9t1 etext 7-put] diskette71 or on audio cassette 0visit+ \r ,web site at _+www.ccra.gc.ca/alternate_: or 0call+ #a-hjj-bfg-abfg week"ds f #h3ae a4m4 6#e3jj p4m4 7,ea/]n ,"t74 #d ,ta# ( ,3t5ts #c ,page ,*apt] #a--,g5]al ,9=m,n """""""""""" #d ,:at is f>m+ 9come8 """"""""""""""" #d ,h[ d y report yr f>m+ 9come8 """"" #d ,busi;s records """"""""""""""""""" #e ,p5alties """"""""""""""""""""""""" #f ,9/al;t pay;ts """""""""""""""""""" #f ,gds & s]vices tax/h>moniz$ sales tax 7,,gst/,,hst7 regi/r,n """""""""""""""""""""""" #f ,report+ "pn]%ip 9come """""""""""" #f ,*apt] #b--,calculat+ ,yr ,f>m+ ,9come or ,loss """"""""""""""""""" #g ,=m ,t#bjdb1 ,/ate;t ( ,f>m+ ,activities """"""""""""""""""""" #h ,f>m+ 9come """"""""""""""""""""""" #i ,f>m+ exp5ses """""""""""""""""""" #ab ,details ( equ;y 7*>t on page #d ( ,=m ,t#bjdb7 """""""""""""" #bg ,*apt] #c--,capital ,co/ ,all[.e 7,,cca7 """""""""""""""""""""""""" #bg ,:at is ,,cca8 """"""""""""""""""" #bg #e ,ta# ( 3t5ts a#c ,def9i;ns """""""""""""""""""""""" #bh ,h[ m* ,,cca c y claim8 """""""""" #bh ,h[ d y make yr claim8 """"""""""" #bi ,classes ( deprecia# prop]ty """"" #cb ,special situ,ns """"""""""""""""" #cd ,*apt] #d--,eligi# ,capital ,exp5ditures """"""""""""""""""""" #ch ,:at is an eligi# capital exp5diture8 """""""""""""""""""" #ch ,:at is an annual all[.e8 """""""" #ch ,:at is a cumulative eligi# capital 7,,cec7 a3.t8 """""""""" #ch ,h[ 6calculate yr annual all[.e "" #ch ,sale ( eligi# capital prop]ty --,fiscal p]iod 5d+ 9 #bjjc """" #dj ,f>m+ 9come f ! sale ( eligi# capital prop]ty eligi# =! capital ga9s deduc;n """"""""""" #dj ,replace;t prop]ty """"""""""""""" #dc ,*apt] #e--,f>m ,losses """""""""""" #dc ,fully deducti# f>m losses """"""" #dc ,"ply deducti# losses 7re/rict$ f>m losses7 """""""""""""""""""" #dd #f ,ta# ( 3t5ts b#c ,non-deducti# f>m losses """"""""" #dd ,*apt] #f--,capital ,ga9s """""""""" #de ,:at is a capital ga98 """"""""""" #de ,:at is a capital loss8 """""""""" #de ,def9i;ns """""""""""""""""""""""" #de ,h[ 6calculate yr capital ga9 or loss """""""""""""""""""""""" #de ,re/rict$ f>m losses """"""""""""" #dg ,qualifi$ f>m prop]ty & cumulative capital ga9s deduc;n """""""""""""""""""""""" #dg ,transf] ( f>m prop]ty 6a * """""" #dh ,transf] ( f>m prop]ty 6a sp\se or -mon-law "pn] """"""""""""""" #di ,o!r special rules """"""""""""""" #di ,capital ,co/ ,all[.e 7,,cca7 ,rates """"""""""""""""""""""""""" #ej ,h[ 6,calculate ! ,m&atory ,9v5tory ,adju/;t 7,,mia7 """""""" #ea ,,gst/,,hst ,rates """"""""""""""""" #eb ,9dex """""""""""""""""""""""""""""" #ed #g #h ,*apt] #a--,g5]al ,9=m,n #d ,:at is f>m+ 9come8 ,f>m+ 9come 9cludes 9come y e>n$ f ! foll[+ activities3 --soil till+2 --live/ock rais+ or %[+2 --racehorse ma9t5.e2 --p\ltry rais+2 --dairy f>m+2 --fur f>m+2 --tree f>m+2 --fruit gr[+2 --beekeep+2 --cultivat+ crops 9 wat] or hydroponics2 --,*ri/mas tree gr[+2 --op]at+ a wild-game res]ve2 --*ick5 hat*]y2 & --op]at+ a fe$lot4 ,9 c]ta9 circum/.es1 y may al e>n f>m+ 9come f3 --rais+ fi%2 #i ,*apt] #a a#d --do+ m>ket g>d5+2 & --op]at+ a nurs]y or gre5h\se4 ,f>m+ 9come .does .n 9clude 9come y e>n$ f "w+ z an employee 9 a f>m+ busi;s1 or f trapp+4 ,y 7 ask+8 ,"q ,:5 does a f>m+ busi;s />t8 ,c ,i deduct ! co/s ,i 9cur 2f & dur+ ! />t ( my f>m+ busi;s8 ,answ] ,we look at ea* case on xs [n m]its4 ,g5],y1 we 3sid] t a f>m+ busi;s />ts :5"e y 2g9 "s significant activ;y t is a regul> "p (! f>m+ busi;s1 or t is nec 6get ! busi;s go+4 ,= example1 suppose y decide 6buy 5 p\ltry = resale 6/>t yr f>m+ busi;s4 ,we wd 3sid] ? 6be ! />t+ po9t ( yr f>m+ busi;s4 ,y c usu,y deduct all (! exp5ses y h 9curr$ f t po9t 6e>n f>m+ 9come4 ,y cd / deduct ! exp5ses #aj ,*apt] #a b#d ev5 if1 despite all yr ef=ts1 yr f>m+ busi;s w.d up4 ,on ! o!r h&1 if y review s"eal di6]5t types ( f>m+ activities 9 ! hope ( go+ 96a f>m+ busi;s ( "s k9d1 we wd n 3sid] t yr busi;s has 2gun1 & y _c deduct any (! co/s y 9cur4 ,= m details ab ! />t (a busi;s1 see ,9t]pret,n ,bullet9 ,,it-#cfd1 ,-m;e;t ( ,busi;s ,op],ns4 ,! law all[s ,/ati/ics ,canada 6a3ess busi;s 9=m,n collect$ 0! ,canada ,cu/oms & ,rev5ue ,ag5cy 7,,ccra74 ,/ati/ics ,canada c n[ %>e ) prov9cial /ati/ical ag5cies1 = rese>* & analysis purposes only1 data 3c]n+ busi;s activities c>ri$ \ 9 _! respective prov9ce4 ,h[ d y report yr f>m+ 9come8 ,y c e>n f>m+ 9come z a self-employ$ f>m] or z a "pn] (a f>m "pn]%ip4 ,mo/ (! rules t apply 6a self-employ$ f>m] #aa ,*apt] #a c#d al apply 6a "pn]4 ,h["e1 if y >e a "pn]1 y %d al r1d 8,report+ "pn]%ip 9come0 on page #f4 ,y report yr f>m+ 9come bas$ on a .fiscal .p]iod4 ,a fiscal p]iod is ! "t cov]$ f ! "d yr f>m+ busi;s />ts xs busi;s ye>1 6! "d yr f>m+ busi;s 5ds xs busi;s ye>4 ,= an exi/+ busi;s1 ! fiscal p]iod is usu,y #ab mon?s4 ,a fiscal p]iod _c 2 l;g] ?an #ab mon?s4 ,h["e1 x c 2 %ort] ?an #ab mon?s 9 "s cases1 s* z :5 a new busi;s />ts or :5 a busi;s /ops4 ,self-employ$ 9dividuals g5],y h 6use a ,decemb] #ca ye>-5d4 ,if y >e an eligi# 9dividual1 y may 2 a# 6use an alt]native me?od ( report+ yr busi;s 9come t all[s y 6keep a fiscal p]iod t does n 5d on ,decemb] #ca4 ,6det]m9e if y >e eligi# 6h a fiscal ye>-5d t is n ,decemb] #ca1 see ! ,reconcili,n ( ,busi;s ,9come = ,tax ,purposes guide1 : 9cludes ,=m ,t#aaci1 ,reconcili,n ( #bjjc ,busi;s ,9come = ,tax #ab ,*apt] #a d#d ,purposes4 ,x expla9s h[ 6calculate ! am.t ( f>m+ 9come 6report on yr #bjjc 9come tax return1 & x al tells y if y h 6file ,=m ,t#aaci = #bjjc4 ,9 mo/ cases1 if y fil$ "o = #bjjb1 y w g5],y h 6d s ag = #bjjc4 ,report+ me?ods ,y c report yr f>m+ 9come us+ ! ca% me?od or ! a3rual me?od ( a3.t+4 ,:5 y use ! .ca% .me?od1 y3 --report 9come 9 ! fiscal p]iod y rcv x2 & --deduct exp5ses 9 ! fiscal p]iod y pay !m4 ,= special rules on prepd exp5ses1 see 8,prepd exp5ses0 on page #ad4 ,if y use ! ca% me?od & rcv a po/-dat$ *eque z secur;y =a debt1 9clude ! am.t 9 9come :5 ! *eque is paya#4 ,if y rcv a po/-dat$ *eque z an absolute pay;t =a debt1 9clude ! am.t 9 9come :5 y get ! *eque4 ,if ! bank #ac ,*apt] #a e#d does n hon\r ! *eque1 y c adju/ yr 9come !n4 --------------------------------------#e ,note ,! prec$+ po/-dat$ *eque rules apply 69come-produc+ transac;ns1 s* z ! sale ( gra94 ,!y d n apply 6transac;ns 9volv+ capital prop]ty1 s* z ! sale (a tractor4 ,:5 y use ! ca% me?od1 d n 9clude 9v5tory :5 y calculate yr 9come4 ,h["e1 "! >e two excep;ns 6? rule4 ,= details1 see 8,l9e #iida--,op;nal 9v5tory adju/;t 9clud$ 9 #bjjc0 & 8,l9e #iidb--,m&atory 9v5tory adju/;t 9clud$ 9 #bjjc0 on pages #bc & #bd4 ,= m details on ! ca% me?od = f>m+ 9come1 see ,9t]pret,n ,bullet9 ,,it- #dcc1 ,f>m+ or ,fi%+--,use ( ,ca% ,me?od4 #ad ,*apt] #a a#e ,:5 y use ! .a3rual .me?od1 y3 --report 9come 9 ! fiscal p]iod y e>n x1 no matt] :5 y rcv x2 & --deduct exp5ses 9 ! fiscal p]iod y 9cur !m1 :e!r or n y pay !m 9 t p]iod4 ,:5 y calculate yr 9come us+ ! a3rual me?od1 ! value ( all 9v5tories1 s* z live/ock1 crops1 fe$1 & f]tiliz] w =m "p (! calcul,n4 ,make a li/ ( yr 9v5tory & c.t x at ! 5d ( yr fiscal p]iod4 ,keep ? li/ z "p ( yr busi;s records4 ,y c use ."o (! foll[+ ?ree me?ods 6value yr 9v5tory3 --value all 9v5tory at xs fair m>ket value 7see page #bh =! def9i;n ( 8fair m>ket value072 --value 9dividual items at co/ or fair m>ket value1 :i*"e is l[] 7:5 y _c easily tell "o item f ano!r1 y c value ! items z a gr\p72 & --value live/ock ac 6! unit price base4 ,= ? me?od1 -plete ,=m #ae ,*apt] #a b#e ,t#bjcd1 ,elec;n 6,e/abli% ,9v5tory ,unit ,prices = ,animals4 ,use ! same me?od y us$ 9 pa/ ye>s 6value yr 9v5tory4 ,! value ( yr 9v5tory at ! />t ( yr #bjjc fiscal p]iod is ! same z ! value at ! 5d ( yr #bjjb fiscal p]iod4 ,if ? is yr f/ ye> ( op]at+ a f>m+ busi;s1 y w n h an op5+ 9v5tory at ! />t ( yr fiscal p]iod4 ,= m details on 9v5tories1 see ,9t]pret,n ,bullet9 ,,it-#dgc1 ,9v5tory ,valu,n1 & xs ,special ,rel1se4 ,note ,if y use ! a3rual me?od 6calculate yr f>m+ 9come1 calculate yr co/ ( gds sold on a sep>ate piece ( pap]4 ,=m ,t#bjdb does n h a l9e 6calculate ? am.t4 #af ,*ang+ yr me?od ( report+ c#e 9come ,if y decide 6*ange yr me?od ( report+ 9come f ! a3rual me?od 6! ca% me?od1 use ! ca% me?od :5 y file yr 9come tax return4 ,make sure y 9clude a /ate;t t %[s ea* adju/;t y _h 6make 6yr 9come & exp5ses 2c (! di6];e 9 me?ods4 ,if y decide 6*ange f ! ca% me?od 6! a3rual me?od1 y h 6ask ! ,director ( yr tax s]vices (fice = approval1 9 writ+1 2f ! d1dl9e = fil+ yr 9come tax return4 ,9 yr lr1 expla9 :y y want 6*ange me?ods4 ,2c "! is a di6];e 2t ! ca% & a3rual me?ods1 ! f/ "t y -plete yr 9come tax return us+ ! a3rual me?od1 file a /ate;t %[+ ea* adju/;t y _h 6make 6yr 9come & exp5ses4 ,busi;s records ,keep a record ( yr daily 9come & exp5ses4 ,we d n issue record #ag ,*apt] #a d#e books or su7e/ any "picul> type ( book or set ( books4 ,_m record books & bookkeep+ sy/ems >e availa#4 ,= example1 y c use a book t has columns & sep>ate pages = 9come & exp5ses4 ,"s prov9cial de"p;ts ( agriculture provide bookkeep+ records y c use4 ,keep yr books1 al;g ) yr receipts1 duplicate deposit slips1 bank /ate;ts1 & c.ell$ *eques4 ,keep sep>ate records = ea* busi;s y run4 ,if y keep -put]iz$ records1 make sure !y >e cle> & easy 6r1d4 ,note ,d n s5d yr records ) yr 9come tax return4 ,h["e1 y m/ keep !m 9 case we ask 6see !m4 ,if y d n keep ! nec 9=m,n & y d n h any o!r pro(1 we may h 6det]m9e yr 9come us+ o!r me?ods4 ,we may al h 6reduce ! exp5ses y deduct$4 #ah ,9come records e#e ,keep track (! gross 9come yr f>m+ busi;s e>ns4 ,gross 9come is yr total 9come 2f y deduct exp5ses4 ,yr 9come records %d %[ ! date1 am.t1 & s\rce (! 9come4 ,record ! 9come :e!r y rcvd ca%1 prop]ty1 or s]vices4 ,y m/ 2 a# 6support all 9come 5tries ) orig9al docu;ts4 ,orig9al docu;ts 9clude s* ?+s z sales 9voices1 ca%-regi/] tapes1 receipts1 ca% pur*ase tickets f ! sale ( gra91 & *eque /ubs f m>ket+ bo>ds4 ,exp5se records ,alw get receipts1 9voices1 or o!r v\*]s :5 y buy gds or s]vices4 ,! receipts h 6%[3 --! date (! pur*ase2 --! "n & a4ress (! sell] or suppli]2 --! "n & a4ress (! pur*as]2 & --a full descrip;n (! gds or s]vices4 #ai ,*apt] #a f#e ,keep a record (! prop]ties y b"\4 ,? record %d %[ :o sold y ! prop]ty1 ! co/1 &! date y b"\ x4 ,x w al help y calculate yr capital co/ all[.e 7,,cca74 ,*apt] #c expla9s h[ 6calculate ,,cca4 --------------------------------------#f ,if y sell or trade a prop]ty1 keep a record %[+ ! date y sold or trad$ x1 &! am.t y got f ! sale or trade-in4 ,"t limits ,dep5d+ on ! situ,n1 y h 6keep yr books1 records1 & relat$ v\*]s =! foll[+ l5g?s ( "t3 --if y file yr 9come tax return on "t1 a m9imum ( six ye>s af ! 5d (! tax ye> 6: !y relate2 --if y file yr 9come tax return late1 six ye>s f ! date y file t return2 or --if y file an objec;n or an app1l1 until ei ! issue is settl$ &! "t = fil+ any fur!r app1l #bj ,*apt] #a a#f expires1 or until ! six-ye> p]iod m5;n$ abv expires1 :i*"e is lat]4 ,^! ret5;n p]iods d n apply 6c]ta9 records4 ,= m details1 see ,9=m,n ,circul> #gh-aj1 ,books & ,records ,ret5;n/,de/ruc;n1 & xs ,special ,rel1se4 ,if y want 6de/roy yr books1 records1 & relat$ v\*]s 2f ! m9imum six-ye> p]iod is ov]1 y m/ f/ get writt5 p]mis.n f ! ,director ( yr tax s]vices (fice4 ,6d ?1 ei use ,=m ,t#acg1 ,reque/ = ,de/ruc;n ( ,books & ,records1 or prep>e yr [n writt5 reque/4 ,p5alties ,9clude all yr 9come :5 y calculate x = tax purposes4 ,if y rep1t$ly fail 6report yr 9come1 y may 2 subject 6a p5alty ( #aj@3p (! am.t y fail$ 6report4 #ba ,9/al;t pay;ts b#f ,z a self-employ$ f>m]1 y may h 6pay an annual 9/al;t 0,decemb] #ca1 #bjjd4 ,if \r records 9dicate t y may h 6pay tax 09/al;ts1 we w s5d y an ,9/al;t ,rem9d] 9 late ,novemb] 9dicat+ ! am.t y h 6pay4 ,y may h 6pay 9t]e/ &a p5alty if y d n pay ! full 9/al;t t y [e on "t4 ,= m 9=m,n & 6see h[ 6calculate yr 9/al;ts1 see \r pamphlet ,pay+ ,yr ,9come ,tax 0,9/al;ts4 ,dates 6rememb] ,febru>y #bh1 #bjjd--,if y h employees1 file yr #bjjc ,t#d ,summ>y & ,t#d;,a ,summ>y =ms4 ,al1 give yr employees _! copies (! ,t#d & ,t#d;,a slips4 ,m>* #ca1 #bjjd--,mo/ f>m "pn]%ips w file a "pn]%ip 9=m,n return 0,m>* #ca1 #bjjd4 ,h["e1 "! >e excep;ns4 ,= details1 see ! ,guide =! ,"pn]%ip #bb ,*apt] #a c#f ,9=m,n ,return & ,9=m,n ,circul> #hi-e1 ,"pn]%ip ,9=m,n ,return1 & xs ,special ,rel1se4 ,april #cj1 #bjjd--,pay;t ( any bal.e [+ is due4 ,y w h 6file yr #bjjc 9come tax return 0,april #cj1 #bjjd1 if ! exp5ditures ( yr f>m+ busi;s >e prim>ily 3nect$ ) tax %elt]s4 ,june #ae1 #bjjd--,if y h f>m+ busi;s 9come or if y >e ! sp\se or -mon-law "pn] ( "s"o :o does1 y h until ,june #ae1 #bjjd 6file yr #bjjc 9come tax return1 un.s ! exp5ditures (! busi;s >e prim>ily 3nect$ ) tax %elt]s4 ,h["e1 y h 6pay any bal.e [+ 0,april #cj1 #bjjd1 6avoid 9t]e/ *>ges4 ,decemb] #ca1 #bjjd--,pay yr #bjjd 9/al;t = 9come tax & ,canada ,p5.n ,plan 7,,cpp7 3tribu;ns4 ,note ,if any (! dates m5;n$ abv fall on a ,satur"d1 ,sun"d1 or /atutory holi"d1 #bc ,*apt] #a d#f y h until ! next busi;s "d 6file yr return or make yr pay;t4 ,gds & s]vices tax/h>moniz$ sales tax 7,,gst/,,hst7 regi/r,n ,if yr total gross rev5ue f yr ,,gst/,,hst taxa# sales 7^? tax$ at ! rates ( #j@3p1 #g@3p1 & #ae@3p7 is m ?an 4#cj1jjj 9 a curr5t cal5d> qu>t] or 9 f\r 3secutive cal5d> qu>t]s1 y h 6regi/] = ,,gst/,,hst4 ,if yr gross rev5ue is equal 6or less ?an 4#cj1jjj1 y d n h 6regi/]1 b y may d s volunt>ily4 ,if y regi/]1 y c claim 9put tax cr$its4 ,= 9=m,n ab ,,gst/,,hst taxa# f>m gds & s]vices1 z]o-rat$ f>m products1 & z]o- rat$ f>m pur*ases1 see page #eb4 ,note ,nova ,scotia1 ,new ,brunswick1 & ,newf.dl& & ,labrador h>moniz$ ! #bd ,*apt] #a e#f ,,gst ) _! prov9cial sales tax 6cr1te ! ,,hst4 ,! ,,hst rate 9 ^! prov9ces is #ae@3p &! ,,gst rate 9 ! re/ ( ,canada is #g@3p4 ,report+ "pn]%ip 9come ,a "pn]%ip does n pay 9come tax on xs 9come or file a tax return4 ,9/1d1 ea* "pn] files an 9come tax return 6report 8 or h] %>e (! "pn]%ip's net 9come or loss4 ,! "pn]s h 6d ? :e!r ! %>e ( 9come 0 rcvd 9 ca%1 or z a cr$it 6a capital a3.t 9 ! "pn]%ip4 ,9t]pret,n ,bullet9 ,,it-#ij1 ,:at is a ,"pn]%ip81 & ,9t]pret,n ,bullet9 ,,it- #ach1 ,-put,n & ,fl[-,"? ( ,"pn]%ip ,9come1 h m details ab "pn]%ips4 ,"pn]%ip 9=m,n return ,"pn]%ips t _h six or m "pn]s at any "t 9 ! fiscal p]iod h 6file a "pn]%ip 9=m,n return4 ,"pn]%ips ( five or #be ,*apt] #a f#f few] "pn]s "?\t ! ye> al h 6file a "pn]%ip 9=m,n return if "o or m (! "pn]s is ano!r "pn]%ip4 ,"pn]%ips al h 6file if !y 9ve/$ 9 fl[-"? %>es (a pr9cipal-busi;s corpor,n --------------------------------------#g t 9curr$ ,canadian res\rce exp5ses & ren\nc$ ^? exp5ses 6! "pn]%ip4 ,if y >e a "pn] 9 a "pn]%ip t has 6file a "pn]%ip 9=m,n return1 y %d get two copies (a ,t#ejac slip1 ,/ate;t ( ,"pn]%ip ,9come1 f ! "pn]%ip4 ,if y d n rcv ? slip1 3tact ! p]son :o prep>es ! =ms =! "pn]%ip4 ,! ,guide =! ,"pn]%ip ,9=m,n ,return has m details ab ! return4 ,on yr 9come tax return1 report ! gross "pn]%ip 9come & yr %>e (! net "pn]%ip 9come or loss4 ,y w get ^! am.ts f yr ,t#ejac slip or "pn]%ip f9ancial /ate;t4 ,atta* copy #b ( yr ,t#ejac slip 6yr 9come tax return4 ,d n atta* ! "pn]%ip's 9come & exp5se /ate;t4 ,y may al ne$ 6adju/ yr %>e (! net "pn]%ip 9come or loss %[n on yr #bf ,*apt] #a a#g ,t#ejac slip4 ,use ,=m ,t#bjdb1 ,/ate;t ( ,f>m+ ,activities1 6deduct any busi;s exp5ses y 9cur = : ! "pn]%ip did n repay y4 ,see 8,l9e #iidc--,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss70 on page #bf = m 9=m,n4 ,capital co/ all[.e 7,,cca7 ,z an 9dividual "pn]1 y _c claim ,,cca on prop]ty [n$ 0a "pn]%ip 6: y 2l;g4 ,only ! "pn]%ip c claim ,,cca on ! deprecia# prop]ty t ! "pn]%ip [ns4 ,any ,,cca calculat$ at ! "pn]%ip level w1 h["e1 2 allocat$ 6y ac 6yr %>e (! "pn]%ip 9t]e/4 ,x w1 "!=e1 reduce ! am.t ( net 9come t ! "pn]%ip allocates 6y4 ,f ! capital co/ ( deprecia# prop]ty1 ! "pn]%ip has 6subtract ! foll[+ am.ts3 --any 9ve/;t tax cr$it allocat$ 6! 9dividual "pn]s 7we 3sid] ? alloc,n 6be made at ! 5d (! "pn]%ip's fiscal p]iod72 & --any type ( gov]n;t assi/.e4 #bg ,*apt] #a b#g ,= m details ab ,,cca &! adju/;ts 6capital co/1 see ,*apt] #c4 ,al see 8,column #d--,adju/;ts0 9 ,*apt] #i (! ,guide =! ,"pn]%ip ,9=m,n ,return4 ,any capital ga9 or recapture f ! sale ( prop]ty ! "pn]%ip [ns is 9come (! "pn]%ip4 ,al1 any capital or t]m9al loss f ! sale ( "pn]%ip-[n$ prop]ty is ! loss (! "pn]%ip4 ,see ,*apt] #f = m details ab capital ga9s & losses4 ,see 8,column #e--,,ucc af a4i;ns & 4posi;ns0 on page #ca = m details ab recapture & t]m9al losses4 ,eligi# capital exp5ditures ,a "pn]%ip c [n eligi# capital prop]ty & deduct an annual all[.e4 ,any 9come f ! sale ( eligi# capital prop]ty ! "pn]%ip [ns is 9come (! "pn]%ip4 ,see ,*apt] #d = m details ab eligi# capital exp5ditures4 #bh ,9ve/;t tax cr$it 7,,itc7 c#g ,! ,,itc lets y subtract1 f ! taxes y [e1 "p (! co/ ( "s types ( prop]ty y acquir$ or exp5ditures y 9curr$4 ,y may 2 a# 6claim ? cr$it if 9 #bjjc y3 --b"\ qualify+ prop]ty2 --9curr$ qualify+ exp5ditures1 9clud+ monies pd 6agricultural organiz,ns "? *eck-(fs1 levies1 or ca% assi/.e2 or --rcvd ren\nc$ ,canadian explor,n exp5ses4 ,y may al 2 a# 6claim ! cr$it if y h unus$ ,,itc's f ye>s 2f #bjjc4 ,= m 9=m,n ab ,,itc's1 see ,=m ,t#bjch7,,ind71 ,9ve/;t ,tax ,cr$it 7,9dividuals74 ,gds & s]vices tax/h>moniz$ sales tax 7,,gst/,,hst7 rebate ,if y >e a "pn] 9 a "pn]%ip & y claim$ exp5ses on yr 9come tax return1 y may 2 #bi ,*apt] #a d#g a# 6get a rebate = any ,,gst/,,hst y pd on ! exp5ses4 ,! ,,gst/,,hst rebate is availa# 6y z l;g z y meet .bo? ( ^! 3di;ns3 --y >e a "pn] 9 a ,,gst/,,hst,'- regi/]$ "pn]%ip2 & --on yr 9come tax return1 y deduct$ exp5ses 9curr$ 6e>n "pn]%ip 9come = : ! "pn]%ip did n repay y4 ,we base ! rebate on ! am.t (! exp5ses subject 6,,gst/,,hst t y deduct on yr 9come tax return4 ,= m details ab ! ,,gst/,,hst rebate1 see ! ,,gst/,,hst ,rebate = ,"pn]s guide1 : 9cludes ,=m ,,gst#cgj1 ,employee & ,"pn] ,,gst/,,hst ,rebate ,applic,n4 #cj ,*apt] #b--,calculat+ ,yr e#g ,f>m+ ,9come or ,loss ,z a self-employ$ f>m]1 y h 6give u a /ate;t t a3urately %[s yr f>m+ activities =! ye>4 ,we h 9clud$ ,=m ,t#bjdb1 ,/ate;t ( ,f>m+ ,activities1 9 ! mi4le ( ? guide 6help y calculate yr f>m+ 9come & exp5ses = 9come tax purposes4 ,al? we a3ept o!r types ( f9ancial /ate;ts1 we 5c\rage y 6use ,=m ,t#bjdb4 ,if y >e "picipat+ 9 ! ,canadian ,agricultural ,9come ,/abiliz,n 7,,cais7 program1 d n use ,=m ,t#bjdb4 ,9/1d1 use ,=m ,t#aafc1 ,/ate;t ;,a--,,cais ,program ,a3.t ,9=m,n & ,/ate;t ( ,f>m+ ,activities = ,9dividuals4 ,we h 9clud$ ,=m ,t#aafc 9 ! ,f>m+ ,9come &! ,,cais ,program guide4 ,y c get ! guide f yr tax s]vices (fice or ,,cais program (fice4 ,? *apt] expla9s h[ 6-plete ,=m ,t#bjdb4 ,y h 6-plete a sep>ate =m = ea* busi;s y #ca ,*apt] #b #h op]ate4 ,9t]pret,n ,bullet9 ,,it-#bjf1 ,sep>ate ,busi;ses1 has m details ab ! tax 3sequ;es ( op]at+ m ?an "o busi;s4 ,=m ,t#bjdb1 ,/ate;t ( ,f>m+ ,activities ,if y use ,=m ,t#bjdb & y >e3 --.,a .sole .proprietor (a f>m+ busi;s1 -plete ! 5tire =m4 --..,a "pn] 9 a "pn]%ip & y rcv a ,t#ejac .slip1 -plete only ! items 9 ! 8,id5tific,n0 >ea ( ,=m ,t#bjdb t d n appe> on yr ,t#ejac slip4 ,5t] ! am.t f box #ah ( yr ,t#ejac slip on l9e ;d on page #b ( ,=m ,t#bjdb4 ,on page #d ( ,=m ,t#bjdb1 -plete ! 8,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss70 *>t 6claim any exp5ses = : ! "pn]%ip did n reimburse y1 or o!r am.ts y may 2 a# 6deduct4 ,if x #cb ,*apt] #b a#h applies 6y1 -plete ! 8,calcul,n ( busi;s-use-(-home exp5ses0 *>t on page #d ( ,=m ,t#bjdb4 ,= m 9=m,n1 see page #bg4 --..,a "pn] 9 a "pn]%ip & y did n rcv a ,t#ejac .slip1 -plete all ! >1s & l9es on ,=m ,t#bjdb4 ,report ! 9come &! busi;s "p ( exp5ses =! "pn]%ip on ,=m ,t#bjdb4 ,on page #d ( ,=m ,t#bjdb1 -plete ! 8,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss70 *>t 6claim any exp5ses = : ! "pn]%ip did n reimburse y or any o!r am.ts y may 2 a# 6deduct4 ,if x applies1 -plete ! 8,calcul,n ( busi;s-use- (-home exp5ses0 *>t on page #d ( ,=m ,t#bjdb4 ,= m 9=m,n1 see page #bg4 ,-plete ! 8,details ( o!r "pn]s0 *>t on page #d ( ,=m ,t#bjdb4 #cc ,*apt] #b b#h ,6f9d \ if yr "pn]%ip has 6file a "pn]%ip 9=m,n return1 see 8,"pn]%ip 9=m,n return0 on page #f4 ,9 ! foll[+ text1 we expla9 h[ 6-plete ea* (! l9es on ,=m ,t#bjdb4 ,id5tific,n ,! 8,id5tific,n0 >ea is self- explanatory4 ,y w1 h["e1 ne$ details on ! 9du/ry code4 ,5t] ! .9du/ry .code t be/ describes yr f>m+ activ;y4 ,if m ?an #ej@3p ( yr f>m+ busi;s 9volv$ "o specific activ;y1 *oose ! code t id5tifies t ma9 activ;y4 ,h["e1 if yr f>m+ op],n 9volv$ m ?an "o type ( f>m+ activ;y1 & n"o ( ^! makes up m ?an #ej@3p ( yr f>m+ busi;s1 *oose ! appropriate -b9,n f>m+ code f ! li/4 ,! foll[+ >e li/s ( ^! codes = f>m+ op],ns3 #cd ,live/ock f>m c#h --#aabaaj ,beef cattle1 9clud+ fe$lots --#aababj ,dairy cattle & milk --#aabbaj ,hogs & pigs --#aabcaj ,*ick5s e7s 79clud+ hat*+ e7s7 --#aabcbj ,broil] & o!r m1t-type *ick5s --#aabccj ,turkeys --#aabcdj ,p\ltry hat*]ies --#aabcia ,-b9,n p\ltry & e7s --#aabcii ,all o!r p\ltry & e7s --#aabdaj ,%eep --#aabdbj ,goats --#aabeaj ,animal aquaculture 7s* z frogs1 fi%es1 %ellfi%es7 --#aaebaj ,support activities = animal produc;n 7husb&ry s]vices7 --#aabiia ,live/ock -b9,n f>m+1 & live/ock f>m+ ) second>y crop f>m+ #ce ,o!r animal specialties f>m d#h --#aabiaj ,apiculture 7beekeep+7 --#aabibj ,horses & o!r equ9es --#aabicj ,fur-be>+ animals & ra2its --#aabiii ,all o!r miscellane\s animals ,field-crop f>m --#aaaaaj ,soyb1ns --#aaaabj ,oilse$ 79clud+ canola1 flax1 mu/>d1 & sunfl[]s7 --#aaaacj ,pulse crops 7s* z dry field p1s1 b1ns1 & l5tils7 --#aaaadj ,:1t --#aaaaej ,corn --#aaaaij ,c]1ls 7s* z b>ley1 oats1 rye1 & gr[+ wild rice7 --#aaabaa ,potatoes --#aaabai ,o!r vegeta#s 7except potatoes7 & melons --#aaaccj ,non-citrus fruit & tree nuts --#aaadaa ,mu%rooms #cf ,*apt] #b e#h --#aaadai ,o!r food crops gr[n "u cov] --#aaadba ,nurs]y & tree produc;n --#aaadbb ,floriculture --#aaaiaj ,toba3o --#aaaidj ,hay --#aaaiic ,fruit & vegeta# -b9,n f>m+ --#aaaiii ,miscellane\s crops1 -b9,n ( crops1 & -b9,n ( crops ) second>y live/ock f>m+ --------------------------------------#i --#aaeaaj ,support activities = crop produc;n 7soil prep>,n1 prun+1 spray+1 h>ve/+1 fruit pick+1 crop cle>+1 sort+1 grad+7 on 3tract ,f>m+ 9come ,l9e #icgj--,total gra9s & oilse$s ,5t] ! 9come f ! sale ( yr gra9s & oilse$s on ! prop] l9es4 ,5t] ! total sales on l9e #icgj4 #cg ,*apt] #b a#i ,if y sold gra9 directly or "? an ag5cy1 9clude 9 9come all ! am.ts y rcvd f ^! sales4 ,= example1 9clude any ,canadian ,:1t ,bo>d pay;ts f ! sale ( :1t1 durum :1t1 & b>ley4 ,:5 y deliv]$ gra9 6a lic5s$ public elevator or process elevator1 y rcvd a /orage ticket1 a ca% pur*ase ticket1 or a def]r$ ca% pur*ase ticket4 ,if y rcvd a ./orage .ticket1 a sale did .n take place4 ,"!=e1 y d n h 69clude t am.t 9 9come4 ,h["e1 if y rcvd a .ca% .pur*ase .ticket1 a sale .did take place4 ,2c we 3sid] t y rcvd a pay;t at ! "t y rcvd ! ticket1 y h 69clude ! am.t 9 9come4 ,if y rcvd a ..def]r$ ca% pur*ase .ticket1 y may 2 a# 6def] ! 9come until ! foll[+ tax ye>4 ,y c d ? if ! ticket provides = pay;t af ! 5d (! tax ye> 9 : y deliv]$ ! gra94 ,? c>ry-ov] ( 9come is only all[a# 9 specific situ,ns4 ,= m details1 see ,9t]pret,n ,bullet9 #ch ,*apt] #b b#i ,,it-#ahd1 ,def]r$ ,ca% ,pur*ase ,tickets ,issu$ = ,gra94 ,ca% adv.es ,"u ! ,agricultural ,m>ket+ ,programs ,act1 y may 2 a# 6get adv.es = crops t "s"o /ores 9 yr "n4 ,we 3sid] ^! adv.es 6be loans4 ,d n 9clude ^! pay;ts 9 yr 9come until ! crops >e sold4 ,h["e1 =! tax ye> 9 : ! sale o3urs1 9clude ! full am.t f ! sale ( yr crops 9 yr 9come4 ,l9es #idba 6#idbd 79clusive7 ,5t] ! total 9come f ! sale (! id5tifi$ produce on ! applica# l9e4 ,:e!r y sold produce directly or "? an ag5cy1 9clude 9 9come all ! am.ts y rcvd f ^! sales4 ,d n 9clude am.ts rcvd f ! sale ( gre5h\se vegeta#s4 ,see l9e #idbe = details on ^! vegeta#s4 #ci ,l9e #idbj--,o!r crops c#i ,5t] ! total 9come f ! sale ( sug> beets1 hops1 or any o!r crops y h n specific,y id5tifi$ on ano!r l9e4 ,l9e #idbe--,gre5h\se & nurs]y products ,5t] ! total 9come f ! sale ( s* ?+s z orna;tal plants1 %rubs1 trees1 cut & field-gr[n fl[]s1 root$ cutt+s1 se$s & bulbs1 sod & turf1 & gre5h\se vegeta#s4 ,l9e #idbf--,=age crops or se$s ,5t] ! total 9come f ! sale ( hay1 alfalfa1 clov] & clov] se$1 alsike1 timo?y1 fescue1 grass se$1 or any o!r =age crops or se$s4 #dj ,l9es #idga 6#idgd d#i 79clusive7--,live/ock sold ,on ! applica# l9e1 5t] ! total 9come f ! sale (! id5tifi$ live/ock4 ,9 "s cases y c def] 9clud+ "s am.ts 9 9come1 z expla9$ 2l4 ,^! def]rals d n apply if y 7 a non-resid5t & 7 n c>ry+ on a f>m+ busi;s "? a fix$ place ( busi;s 9 ,canada at ! 5d (! tax ye>4 ,!y al d n apply 9 ! ye> (! f>m]'s d1?4 ,l9e #idgj--,o!r animal specialties ,5t] on ? l9e ! total 9come f ! sale ( any o!r live/ock n specific,y id5tifi$ on ano!r l9e 7= example1 ! sale ( horses1 ponies1 or dogs74 ,9clude am.ts f ! sale ( fur-be>+ animals y rais$ 9 captiv;y1 s* z fox1 *9*illa1 m9k1 or ra2it1 z well z 9come f an api>y op],n4 #da ,prescrib$ dr"\ region e#i 7,,pdr7 ,9 "s cases1 y may 2 a# 6def] ! applica# 9come rcvd f ! sale ( bre$+ animals 9 yr #bjjc fiscal p]iod 6a lat] fiscal p]iod4 ,6be a# 6d ?1 ! foll[+ .two 3di;ns h 6apply3 --yr f>m+ busi;s 0 locat$ 9 a ,,pdr at "s "t dur+ yr #bjjc fiscal p]iod2 & --y reduc$1 0sale or o!r m1ns1 ! numb] ( bre$+ animals 9 yr bre$+ h]d 0at l1/ #ae@3p4 ,=a li/ ( ,,pdr's1 3tact u or ,agriculture & ,agri-,food ,canada4 ,y w f9d ! a4resses & teleph"o numb]s 9 ! gov]n;t sec;n ( yr teleph"o book4 ,! foll[+ >e 3sid]$ 6be bre$+ animals3 --bov9e cattle2 --bison2 --goats2 --%eep2 --de]1 elk1 & o!r simil> graz+ ungulates y keep = bre$+2 & #db ,*apt] #b f#i --horses y bre$ 6produce pregnant m>e's ur9e t y sell4 ,all yr bre$+ animals m/ 2 old] ?an #ab mon?s4 ,6det]m9e ! size ( yr bre$+ h]d at ! 5d ( yr #bjjc fiscal p]iod1 -plete ,"p #a & ,"p #b (! foll[+ *>t4 -------------------------------------#aj ,bre$+ h]d *>t ,"p #a 7,a7 ,h[ _m ( yr female bov9e cattle ov] #ab mon?s ( age 7held at ! 5d ( yr #bjjc fiscal ye>7 h giv5 bir?8 """""""" ---- 7,b7 ,h[ _m ( yr female bov9e cattle ov] #ab mon?s ( age 7held at ! 5d ( yr #bjjc fiscal ye>7 h .n"e giv5 bir?8 """ ---- 7,c7 ,5t] "o half (! am.t f l9e ;,a """"""""""""""""""""""""""""" ---- 7,d7 ,5t] ei ! am.t f l9e ;,b or l9e ;,c1 :i*"e is less """""""""" ---- #dc ,*apt] #b a#aj ,"p #b 7,e7 ,h[ _m bre$+ animals did y h at ! 5d ( yr #bjjc fiscal p]iod8 """""""""""""""""""""""""" ---- 7,f7 ,5t] ! am.t f l9e ;,b """""""""""""""""""" ---- 7,g7 ,5t] ! am.t f l9e ;,d """""""""""""""""""" ---- 7,h7 ,l9e ;,f .m9us l9e ;,g """"""""""""""""""""""""""""" ---- 7,i7 ,numb] ( bre$+ animals 9 yr bre$+ h]d at ! 5d ( yr #bjjc fiscal p]iod3 ,l9e ;,e .m9us l9e ;,h """"""""""""""""""""""""" ---- ,if ! figure f l9e ;,i is .n m ?an #he@3p (! total numb] ( animals 9 yr bre$+ h]d at ! 5d ( yr #bjjb fiscal ye>1 y c def] "p (! 9come rcvd 9 #bjjc f ! sale ( bre$+ animals4 ,2f y det]m9e h[ m* y c def]1 y ne$ 6calculate a few am.ts4 ,f/1 det]m9e yr sales ( bre$+ animals = yr #bjjc #dd ,*apt] #b b#aj fiscal p]iod m9us any res]ves y claim$ = ^! sales4 ,a .res]ve is cr1t$ :5 y sell prop]ty & d n rcv ! full proce$s at ! "t (! sale4 ,9/1d1 ! am.t ( proce$s is spr1d ov] a numb] ( ye>s1 : all[s y 6def] report+ ^! proce$s 6! ye> 9 : y rcv !m4 ,= m details on res]ves1 see ,9t]pret,n ,bullet9 ,,it-#aed1 ,special ,res]ves1 & ,9t]pret,n ,bullet9 ,,it-#bcf1 ,res]ves --,4posi;n ( ,capital ,prop]ty4 ,af y h det]m9$ yr sales ( bre$+ animals1 subtract f ? am.t ! co/ ( bre$+ animals y b"\ 9 yr #bjjc fiscal p]iod4 ,! result is yr net sales am.t4 ,y !n det]m9e h[ m* y c def] z foll[s3 --if ! am.t at l9e ;,i is m ?an #gj@3p & n m ?an #he@3p ( yr bre$+ h]d at ! 5d ( yr #bjjb fiscal p]iod1 y c def] up 6#cj@3p ( yr net sales am.t2 or --if ! am.t at l9e ;,i is 2t #j@3p & #gj@3p ( yr bre$+ h]d at ! 5d ( yr #de ,*apt] #b c#aj #bjjb fiscal p]iod1 y c def] up 6#ij@3p ( yr net sales am.t4 ,y d n h 6def] all ( ? 9come4 ,y c 9clude any "p ( x 9 yr #bjjc 9come4 ,! def]r$ 9come m/1 h["e1 2 report$ 9 ! fiscal p]iod t 5ds in3 --! ye> 2g9n+ af ! p]iod or p]iods :5 ! region /ops 2+ a ,,pdr2 --! ye> :5 a f>m] dies2 or --! f/ ye> :51 at ! 5d ( t ye>1 ! f>m] is a non-resid5t & has c1s$ 6c>ry on busi;s "? a fix$ place ( busi;s 9 ,canada4 ,if y want1 y c elect 6report ! def]r$ 9come 9 ! ye> af y def]r$ x4 ,if yr f>m+ busi;s 0 n 9 a ,,pdr at any "t dur+ yr #bjjc fiscal p]iod1 y _c def] ! am.t y rcvd :5 y sold bre$+ animals4 ,al1 y h 69clude 9 yr #bjjc 9come any unreport$ am.ts y def]r$ 9 e>li] ye>s4 ,h["e1 z l;g z yr f>m+ busi;s 0 9 a ,,pdr at any "t 9 yr #bjjc fiscal p]iod1 #df ,*apt] #b d#aj y d n h 69clude 9come y def]r$ 9 e>li] ye>s4 ,l9e #idgf--,milk & cr1m1 7exclud+ dairy subsidies7 & ,l9e #idgg--,e7s ,on ! applica# l9e1 5t] ! total 9come f sell+ e7s1 milk1 & cr1m4 ,d n 9clude any am.t y rcvd z dairy subsidies4 ,9clude dairy or milk subsidies y rcvd 9 yr #bjjc fiscal p]iod on l9e #ieda4 ,l9e #iebj--,o!r -modities ,on ? l9e1 5t] ! total 9come f sell+ any o!r -mod;y n specific,y id5tifi$ on ano!r l9e4 ,o!r -modities 9clude ! sale ( sem51 /ud s]vices1 embryo transplants1 >tificial 9sem9,n1 & pregnant m>es' ur9e4 ,al 9clude am.ts f ! sale ( maple products1 mu%rooms1 & g9s5g4 #dg ,program pay;ts e#aj ,y %d rcv an ,,agr-#a slip1 ,/ate;t ( ,f>m-,support ,pay;ts1 6id5tify yr #bjjc taxa# f>m-support pay;ts4 ,ac 6! ,9come ,tax ,regul,ns1 y h 6provide yr social 9sur.e numb]1 :5 reque/$1 6organiz,ns t issue f>m-support pay;ts4 ,y %d rcv an ,,agr-#a slip = all f>m- support programs f : y rcvd pay;ts ( m ?an 4#ajj4 ,^! 9clude f>m-support programs adm9i/]$ 0! f$]al1 prov9cial1 & municipal gov]n;ts1 & 0produc] associ,ns4 ,y h 69clude 9 9come all taxa# f>m- support pay;ts y rcvd 9 yr #bjjc fiscal p]iod1 9clud+ am.ts ( 4#ajj or less4 ,if yr f>m is op]at$ z a "pn]%ip1 only "o "pn] %d atta* ! ,,agr-#a slip 6his or h] 9come tax return4 ,h["e1 if yr "pn]%ip has 6file a "pn]%ip 9=m,n return1 y %d file ! slip ) t return4 ,if ! annual p]iod (! ,,agr-#a slip is n ! same z ! fiscal p]iod ( yr f>m+ op],n1 report only ! "p (! f>m- #dh ,*apt] #b f#aj support pay;ts t y e>n$ dur+ yr normal fiscal p]iod4 ,= example1 if yr f>m+ busi;s has a fiscal p]iod 5d+ on ,june #cj1 #bjjc1 & yr -------------------------------------#aa ,,agr-#a slip %[s 9come ( 4#aj1jjj 9 box #ad1 b y e>n$ only 4#f1jjj ( t 9come 0,june #cj1 #bjjc1 9clude only 4#f1jjj 9 yr 9come = yr #bjjc fiscal p]iod4 ,9clude ! rema9+ 4#d1jjj 9 yr next fiscal p]iod4 ,h["e1 9clude ! ,,agr-#a slip issu$ =! #bjjc cal5d> ye> ) yr #bjjc 9come tax return4 ,if y >e a =m] ,net ,9come ,/abiliz,n ,a3.t 7,,nisa7 program "picipant & rcvd an ,,agr-#a slip )a positive am.t 9 box #ah1 report x z 9come on l9e #acj ( yr 9come tax return4 ,! figure 9 box #ah repres5ts taxa# am.ts pd \ ( yr ,,nisa ,fund #b a3.t4 ,if y rcvd an ,,agr-#a slip )a negative am.t %[+ 9 box #ah1 d n 5t] ? am.t on l9e #acj ( yr 9come tax return4 ,2c a negative figure is n 3sid]$ 9come1 5t] ! am.t on l9e #di ,*apt] #b a#aa #bcb1 8,o!r deduc;ns40 ,5sure t y atta* ! ,,agr-#a slip 6yr 9come tax return 6support ? deduc;n4 ,! back (! ,,agr-#a slip 3ta9s 9=m,n ab h[ 6report am.ts t appe> 9 ! v>i\s boxes4 ,l9e #ieda--,dairy subsidies ,9clude 9 yr 9come ! dairy or milk subsidies y rcvd4 ,l9e #iedb--,crop 9sur.e ,9clude 9 yr 9come any 9sur.e proce$s y rcvd f f$]al1 prov9cial1 or jo9t f$]al/prov9cial programs = loss ( crops4 ,l9e #iedj--,o!r pay;ts ,9clude ! total 9come y rcvd f all o!r /abiliz,n & f>m-subsidy programs made 6f>m produc]s "u f$]al1 prov9cial1 municipal1 or jo9t programs4 #ej ,*apt] #b b#aa ,4a/] assi/.e program pay;ts--,5t] any pay;ts y rcvd f f$]al or prov9cial 4a/] assi/.e programs4 ,^! 9clude ! foll[+3 --! ,agricultural ,9come ,4a/] ,assi/.e 7,,aida7 ,program 9 ,saskat*ewan1 ,manitoba1 ,nova ,scotia1 ,newf.dl& & ,labrador1 ,new ,brunswick1 ,pr9ce ,$w>d ,isl&1 & ,quebec2 --! ,canadian ,f>m ,9come ,program 7,,cfip7 9 ,saskat*ewan1 ,manitoba1 ,nova ,scotia1 ,newf.dl& & ,labrador1 ,new ,brunswick1 ,pr9ce ,$w>d ,isl&1 & ,quebec2 --! ,:ole ,f>m ,9sur.e ,pilot 7,,wfip7 ,program 9 ,briti% ,columbia2 --! ,f>m ,9come ,4a/] ,program 7,,fidp7 9 ,alb]ta2 & --! ,ont>io ,:ole ,f>m ,relief ,program 7,,owfrp7 &! ,ont>io ,f>m ,9come ,4a/] ,program 7,,ofidp7 9 ,ont>io4 #ea ,*apt] #b c#aa ,de/roy+ live/ock--,y h 69clude 9 9come any pay;ts y rcvd "u ! ,h1l? ( ,animals ,act = de/roy+ animals4 ,y c *oose 6deduct all or "p (! pay;t z an exp5se 9 ! ye>4 ,h["e1 if y *oose 6d ?1 y h 69clude 9 yr 9come = yr next fiscal p]iod ! am.t y deduct 9 yr #bjjc fiscal p]iod4 ,if y def]r$ pay;ts 9 yr #bjjb fiscal p]iod1 y h 69clude ! def]r$ am.ts z 9come 9 ? fiscal p]iod4 ,l9e #iegj--,rebates ,9clude ! am.t (! rebate1 grant1 or assi/.e y rcvd on ? l9e4 ,2f do+ s1 reduce any relat$ exp5se or ! capital co/ (a relat$ deprecia# asset 0! am.t (! rebate1 grant1 or assi/.e y rcvd4 ,= m details1 see 8,rebates1 grants1 or assi/.e0 on page #ad4 ,= 9=m,n ab ,,gst/,,hst rebates1 see 8,gds & s]vices tax/h>moniz$ sales tax 7,,gst/,,hst7 rebate0 on page #g4 #eb ,l9e #ifja--,cu/om or d#aa 3tract "w1 & ma*9e r5tals ,5t] ! total ( yr 9cid5tal f>m+ 9come f s* ?+s z cu/om or 3tract "w1 haul+1 cu/om truck+1 h>ve/+1 -b9+1 crop du/+ or spray+1 se$+1 dry+1 pack+1 cl1n+1 tr1t+ se$s1 & r5t+ f>m ma*9]y4 ,l9e #ifjd--,9sur.e proce$s ,5t] ! am.t ( any 9sur.e proce$s y rcvd z -p5s,n = loss or damage 6c]ta9 types ( prop]ty4 ,= example1 y may h rcvd 9sur.e proce$s = damage 6a build+ due 6fire1 or =! loss ( live/ock 641se4 ,5t] ! total 9sur.e proce$s on ? l9e if y >e 2+ reimburs$ =3 --! co/ ( non-deprecia# prop]ty t y previ\sly deduct$ z a curr5t exp5se2 or --! co/ ( prop]ty t 0 a salea# item1 s* z live/ock4 ,if ! 9sur.e proce$s -p5sat$ y = .damages 6deprecia# prop]ty1 & y #ec ,*apt] #b e#aa us$ all ( !m 6.repair ! prop]ty )9 a r1sona# p]iod ( "t1 9clude ! proce$s z 9come on ? l9e4 ,claim a deduc;n =! same am.t 9 ! 8,o!r exp5ses0 >ea on page #b ( ,=m ,t#bjdb4 ,claim repairs 6deprecia# prop]ty t is ma*9]y on l9e #igfj & repairs 6motor vehicles on l9e #ihai4 ,if y did n sp5d all (! 9sur.e proce$s on repairs )9 a r1sona# l5g? ( "t1 we 3sid] ! am.ts y did n sp5d 6be proce$s ( 4posi;n4 ,report ^! am.ts 9 column #d ( ,>ea ;,e on page #c ( ,=m ,t#bjdb4 ,= details1 see 8,column #d--,proce$s ( 4posi;n 9 ! ye>0 on page #cj4 ,9sur.e proce$s t -p5sate y = .replace;t ( .lo/ or .de/roy$ deprecia# prop]ty >e 3sid]$ 6be proce$s ( 4posi;n = t deprecia# prop]ty4 ,d n 9clude ? type ( 9sur.e proce$s on ? l9e4 ,= details1 see ,*apt] #c4 ,= 9=m,n on h[ 9sur.e a6ects ! adju/$ co/ base ( capital prop]ty1 y c al see ,*apt] #f4 ,d n 9clude 9sur.e proce$s f f$]al1 prov9cial1 or municipal gov]n;t #ed ,*apt] #b f#aa programs4 ,= details on gov]n;t 9sur.e programs1 see l9es #iedj & #iedb on ? page4 -------------------------------------#ab ,l9e #ifje--,patronage divid5ds ,9clude all patronage divid5ds 7o!r ?an ^? = 3sum] gds or s]vices7 y rcvd4 ,we 3sid] a patronage divid5d t is a %>e or c]tificate ( 9debt$;s 6be 9come at ! "t y rcvd x4 ,l9e #ifjj--,o!r 9come ,5t] ! total ( any o!r f>m+ 9come t y h n specific,y id5tifi$ on ano!r l9e4 ,! foll[+ p>agraphs id5tify "s ( ^! 9come items4 ,wood sales 79clud+ /umpage7 ,if y op]at$ or regul>ly h>ve/$ a woodlot1 9clude 9 yr 9come ! am.ts #ee ,*apt] #b a#ab f ! sale ( trees1 lumb]1 logs1 poles1 or firewood4 ,f ? 9come1 y c deduct a type ( capital co/ all[.e "kn z a deple;n all[.e4 ,= details1 see ,9t]pret,n ,bullet9 ,,it-#dha1 ,timb] ,res\rce ,prop]ty & ,timb] ,limits4 ,if y e>n$ ! 9come 0lett+ o!r p remove /&+ timb] f yr woodlot1 ! proce$s may 2 a capital receipt4 ,a taxa# capital ga9 or an all[a# capital loss may result4 ,= m details on capital ga9s & losses1 see ,*apt] #f ( ? guide &! ,capital ,ga9s guide4 ,= m details on ! sale ( wood1 see ,9t]pret,n ,bullet9 ,,it-#cgc1 ,woodlots1 & xs ,special ,rel1se4 ,gifts ,9 yr 9come1 9clude ! fair m>ket value ( live/ock or o!r items y gave away t y wd norm,y h sold4 ,=! def9i;n ( 8fair m>ket value10 see page #bh4 #ef ,*apt] #b b#ab ,once y give ! live/ock or o!r items away1 y _c deduct any m co/s = rais+ or ma9ta9+ !m4 ,pay;t 9 k9d ,a pay;t 9 k9d o3urs :5 y rcv or give gds or s]vices 9/1d ( m"oy4 ,= 9/.e1 6pay "s"o =a busi;s exp5se1 y may give !m "s?+ y produc$ on yr f>m 9/1d ( m"oy4 ,:5 y d ?1 9clude ! fair m>ket value (! gds or s]vices 9 9come4 ,deduct ! same am.t z an exp5se4 ,if y rcvd a pay;t 9 k9d =a product y wd norm,y h sold1 9clude ! fair m>ket value (! product 9 9come4 ,if y 7 a l&"l r5t+ \ l& 9volv$ 9 %>ecropp+1 we 3sid] any pay;t 9 k9d y rcvd 6be r5tal 9come4 #eg ,surface r5tal = petroleum c#ab or natural gas explor,n ,if y rcvd pay;ts = l1s+ yr f>ml& = petroleum or natural gas explor,n1 ^! pay;ts w 2 ei 9come or a capital receipt4 ,9clude 9 yr 9come ! ye>ly am.ts = r5tal1 s"e.e1 or 9conv5i;e f a surface r5tal agree;t4 ,! f/ pay;t f ^! agree;ts is (t5 l>g] ?an ! re/ (! annual pay;ts4 ,h["e1 ! agree;t may n specify h[ m* (! f/ pay;t is = s* ?+s z damage 6l&1 l& improve;ts1 s"e.e1 9conv5i;e1 or ! f/ ye>'s r5t4 ,:5 ? happ5s1 9 ! ye> y rcvd ! f/ pay;t1 9clude 9 9come an am.t t is equal 6! annual pay;t y w rcv 9 ! foll[+ ye>s4 ,! re/ (! f/ pay;t is a pay;t = prop]ty4 ,? may result 9 ei a capital ga9 or loss4 ,= details ab capital ga9s1 see ,*apt] #f4 #eh ,r5tal 9come d#ab ,except =! surface r5tal previ\sly expla9$1 y d n usu,y 9clude r5tal 9come 9 yr f>m+ 9come4 ,6det]m9e yr r5tal 9come1 use ,=m ,t#ggf1 ,/ate;t ( ,r1l ,e/ate ,r5tals4 ,y w f9d ? =m 9 ! ,r5tal ,9come guide4 ,if y 7 a l&"l r5t+ \ l& 9volv$ 9 %>ecropp+1 we 3sid] ! pay;ts y rcvd1 :e!r 9 k9d or ca%1 6be r5tal 9come = tax purposes4 ,recapture ( capital co/ all[.e 7,,cca7 ,9clude 9 yr 9come ! am.t ( any recapture ( ,,cca y h f sell+ deprecia# prop]ty s* z tools & equip;t4 ,-plete ! applica# >1s on ,=m ,t#bjdb 6f9d \ if y h any recapture ( ,,cca4 ,= details1 see ,*apt] #c4 #ei ,miscellane\s e#ab ,9clude 9 yr 9come am.ts y rcv f ! sale ( soil1 s&1 gravel1 or /"o4 ,= "s ( ^! items1 y c claim a deple;n all[.e4 ,y c deduct #ajj@3p (! co/ ( prop]ty s* z small tools if !y co/ less ?an 4#bjj4 ,if y did ? & y lat] sold t prop]ty1 y h 69clude 9 9come ! am.t y rcvd f ! sale4 ,9clude 9 yr 9come prizes y won f fairs or f>m+ exhibi;ns4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it-#bac1 ,prizes ,f ,lott]y ,s*emes1 ,pool ,sy/em ,bett+ & ,giveaway ,3te/s4 ,l9e #ifei--,gross 9come ,gross f>m+ 9come is yr total f>m+ 9come 2f y deduct exp5ses4 ,5t] yr gross f>m+ 9come on l9e #afh ( yr 9come tax return4 #fj ,f>m+ exp5ses f#ab ,! phrase 85t] busi;s "p only0 on ,=m ,t#bjdb m1ns t y _c 9clude any (! foll[+ z "p ( yr exp5ses3 --! co/ ( salea# gds or s]vices y1 yr family1 or yr "pn]s & _! families us$ 7salea# gds 9clude items s* z dairy products1 e7s1 fruit1 vegeta#s1 p\ltry1 & m1t72 --! "p ( any exp5ses t y c attribute 6yr p]sonal use (! f>m+ busi;s1 or "pn]%ip prop]ty or s]vices2 -------------------------------------#ac --sal>y1 wages1 or draw+s pd 6yrf1 "pn]7s71 or bo?2 --don,ns 6*>ities & political 3tribu;ns2 --9t]e/ & p5alties y pd on yr 9come tax2 & --mo/ life 9sur.e premiums 7see l9e #ihjd on page #af = details on a limit$ excep;n74 #fa ,curr5t or capital exp5ses a#ac ,r5ov,ns & exp5ses t ext5d ! use;l life ( yr prop]ty or improve x 2y xs orig9al 3di;n >e usu,y capital exp5ses4 ,h["e1 an 9cr1se 9 a prop]ty's m>ket value 2c ( an exp5se is n a major factor 9 decid+ :e!r ! exp5se is capital or curr5t4 ,6decide :e!r an am.t is a curr5t exp5se or a capital exp5se1 3sid] yr answ]s 6! "qs on ! foll[+ *>t4 ,transcrib]'s note3 7,! foll[+ 0 set-up 9 ?ree columns4 ,column #a3 ,crit]ia ,column #b3 ,capital exp5ses ,column #c3 ,curr5t exp5ses7 ,curr5t or capital exp5ses ,crit]ia3 ,does ! exp5se provide a la/+ b5efit8 ,capital exp5ses3 ,a capital exp5se g5],y gives a la/+ b5efit or advantage4 ,= example1 ! co/ ( #fb ,*apt] #b b#ac putt+ v9yl sid+ on ! ext]ior walls (a wood5 h\se is a capital exp5se4 ,curr5t exp5ses3 ,a curr5t exp5se is "o t usu,y recurs af a %ort p]iod4 ,= example1 ! co/ ( pa9t+ ! ext]ior (a wood5 h\se is a curr5t exp5se4 ,crit]ia3 ,does ! exp5se ma9ta9 or improve ! prop]ty8 ,capital exp5ses3 ,! co/ (a repair t improves a prop]ty 2y xs orig9al 3di;n is probably a capital exp5se4 ,if y replace wood5 /eps ) 3crete /eps1 ! co/ is a capital exp5se4 ,curr5t exp5ses3 ,an exp5se t simply re/ores a prop]ty 6xs orig9al 3di;n is usu,y a curr5t exp5se4 ,= example1 ! co/ ( repair+ wood5 /eps is a curr5t exp5se4 ,crit]ia3 ,is ! exp5se =a "p (a prop]ty or =a sep>ate asset8 ,capital exp5ses3 ,! co/ ( replac+ a sep>ate asset )9 t prop]ty is a #fc ,*apt] #b c#ac capital exp5se4 ,= example1 ! co/ ( buy+ a -pressor = use 9 yr busi;s op],n is a capital exp5se4 ,? is ! case 2c a -pressor is a sep>ate asset1 & is n a "p (! build+4 ,curr5t exp5ses3 ,! co/ ( repair+ a prop]ty 0replac+ "o ( xs "ps is usu,y a curr5t exp5se4 ,= 9/.e1 electrical wir+ is "p (a build+4 ,"!=e1 an am.t y sp5d 6rewire is usu,y a curr5t exp5se1 z l;g z ! rewir+ does n improve ! prop]ty 2y xs orig9al 3di;n4 ,crit]ia3 ,:at is ! value (! exp5se8 7,use ? te/ only if y _c det]m9e :e!r an exp5se is capital or curr5t 03sid]+ ! ?ree previ\s te/s74 ,capital exp5ses3 ,-p>e ! co/ (! exp5se 6! value (! prop]ty4 ,g5],y1 if ! co/ is ( 3sid]a# value 9 rel,n 6! prop]ty1 x is a capital exp5se4 ,curr5t exp5ses3 ,? te/ is n a det]m9+ factor 0xf4 ,y mige am.t ( m"oy = ma9t5.e & repairs 6yr #fd ,*apt] #b d#ac prop]ty all at once4 ,if ? co/ 0 = ord9>y ma9t5.e t 0 n d"o :5 x 0 nec1 x is a ma9t5.e exp5se1 & y deduct x z a curr5t exp5se4 ,crit]ia3 ,is ! exp5se = repairs 6us$ prop]ty t y acquir$ 6put x 9 suita# 3di;n = use8 ,capital exp5ses3 ,! co/ ( repair+ us$ prop]ty t y acquir$ 6put x 9 a suita# 3di;n = use 9 yr busi;s is 3sid]$ a capital exp5se ev5 ?\< 9 o!r circum/.es x wd 2 tr1t$ z a curr5t op]at+ exp5se4 ,curr5t exp5ses3 ,": ! repairs 7 = ord9>y ma9t5.e (a prop]ty t y alr _h 9 yr busi;s1 ! exp5se is usu,y curr5t4 ,crit]ia3 ,is ! exp5se = repairs made 6an asset 9 ord] 6sell x8 ,capital exp5ses3 ,! co/ ( repairs made 9 anticip,n (! sale (a prop]ty1 or z a 3di;n ( sale1 is reg>d$ z a capital exp5se4 #fe ,*apt] #b e#ac ,curr5t exp5ses3 ,": ! repairs wd h be5 made anyway1 b a sale 0 negotiat$ dur+ ! c\rse (! repairs or af _! -ple;n1 ! co/ is reg>d$ z curr5t4 ,= m 9=m,n1 see ,*apt] #c & ,9t]pret,n ,bullet9 ,,it-#abh1 ,capital ,co/ ,all[.e--,deprecia# ,prop]ty4 -------------------------------------#ad ,rebates1 grants1 or assi/.e ,y %d subtract f ! applica# exp5se any rebate1 grant1 or assi/.e y rcvd4 ,5t] ! net exp5se on ! appropriate l9e on ,=m ,t#bjdb4 ,if ! rebate1 grant1 or assi/.e is =a deprecia# asset1 subtract x f ! prop]ty's capital co/ 2f calculat+ ,,cca4 ,= details1 see ,*apt] #c4 ,if ! asset qualifies =! 9ve/;t tax cr$it1 ? reduc;n 6! capital co/ w al a6ect yr claim4 ,= details1 see ,=m ,t#bjch7,,ind71 ,9ve/;t ,tax ,cr$it 7,9dividuals74 #ff ,*apt] #b a#ad ,if y _c apply ! rebate1 grant1 or assi/.e 6reduce a "picul> exp5se or a prop]ty's capital co/1 9clude ! am.t z 9come on l9e #iegj4 ,only 9clude ! am.t t 0 n us$ 6reduce ! co/ (a prop]ty or ! am.t ( an \tlay or exp5se4 ,,gst/,,hst 9put tax cr$its ,if y claim ! ,,gst/,,hst y pd on yr f>m+ busi;s exp5ses z an 9put tax cr$it 7,,itc71 reduce ! am.ts (! busi;s exp5ses y %[ on ,=m ,t#bjdb 0! am.t (! ,,itc4 ,d ? :5 ! ,,gst/,,hst = : y >e claim+ ! ,,itc 0 pd or 2came paya#4 ,5t] ! net exp5se figure on ! prop] l9e on ,=m ,t#bjdb4 ,,itc's t y claim =! pur*ase ( deprecia# prop]ty us$ 9 yr busi;s w a6ect yr claim = ,,cca4 ,if y _c apply ! cr$it y rcvd 6reduce a "picul> exp5se1 or 6reduce an asset's capital co/1 9clude ! am.t z 9come at l9e #iegj1 8,rebates10 on ,=m ,t#bjdb4 #fg ,*apt] #b b#ad ,= details ab h[ 9put tax cr$its a6ect yr claim = ,,cca1 see 8,column #b-- ,undepreciat$ capital co/ 7,,ucc7 at ! />t (! ye>0 on page #bi4 ,prepd exp5ses ,a prepd exp5se is ! co/ (a s]vice y pd = ah1d ( "t4 ,= example1 9sur.e1 prop]ty taxes1 & r5t wd 2 prepd exp5ses if y pd 9 "o ye>1 b did n rcv ! b5efits until ! next ye>4 ,if y use ! a3rual me?od 6det]m9e yr f>m+ 9come1 y c deduct ! "p (! prepd exp5ses t applies 6! tax ye> y rcv ! b5efit4 ,if y use ! ca% me?od = report+ 9come1 y _c deduct a prepd exp5se am.t 7o!r ?an = 9v5tory7 relat+ 6a tax ye> t is two or m ye>s af ! ye> ! exp5se is pd4 ,h["e1 y c deduct ! "p ( an am.t y pd 9 a previ\s ye> = b5efits rcvd 9 ! curr5t tax ye>4 ,^! am.ts >e deducti# z l;g z y h n previ\sly deduct$ !m4 #fh ,*apt] #b c#ad ,= example1 if y pd 4#fjj =a ?ree-ye> l1se 9 #bjjc1 y c deduct 4#djj 9 #bjjc4 ,? repres5ts ! "p (! exp5se t applies 6#bjjc & #bjjd4 ,on yr #bjje 9come tax return1 y cd !n deduct ! bal.e ( 4#bjj =! "p (! prepd l1se t applies 6#bjje4 ,l9e #iffa--,3ta9]s & tw9e ,5t] ! total am.t y pd = mat]ial 6package1 3ta91 or %ip yr f>m produce or products4 ,if y op]at$ a nurs]y or gre5h\se1 deduct ! co/ ( yr 3ta9]s & pots =! plants y sold4 ,l9e #iffb--,f]tiliz]s & lime ,5t] ! total am.t y pd = f]tiliz]s & lime y us$ 9 yr f>m+ busi;s4 #fi ,l9e #iffc--,pe/icides d#ad 7h]bicides1 9secticides1 fungicides7 ,5t] ! total am.t y pd = h]bicides1 9secticides1 & fungicides4 ,l9e #iffd--,se$s & plants ,5t] ! total am.t y pd = se$s & plants4 ,d n 9clude ! co/ ( se$s & plants y us$ 9 yr p]sonal vegeta# or fl[] g>d54 ,l9e #igaa--,fe$1 supple;ts1 /raw1 & b$d+ ,5t] ! total am.t y pd = fe$1 supple;ts1 /raw1 & b$d+ y pur*as$ = yr f>m+ busi;s4 ,y _c deduct ! value (! fe$1 /raw1 or b$d+ y grew4 #gj ,l9e #igab--,live/ock e#ad pur*as$ ,5t] ! am.t y pd = all live/ock y pur*as$4 ,l9e #igac--,vet]9>y fees1 m$ic9e1 & bre$+ fees ,5t] ! total am.t y pd = m$ic9e = yr animals1 &= vet]9>y & bre$+ fees4 ,examples ( s* fees 9clude ! co/ ( >tificial 9sem9,n1 /ud s]vice & sem51 embryo transplants1 41se te/+1 & neut]+ or spay+4 ,ma*9]y exp5ses ,! exp5ses ( op]at+ & ma9ta9+ yr ma*9]y is ! total ( l9e #igfj & l9e #igfd 2l4 #ga ,l9e #igfj--,repairs1 f#ad lic;es1 & 9sur.e ,5t] ! total am.t ( repair1 lic;e fee1 & 9sur.e premium exp5ses y 9curr$ = yr ma*9]y4 ,if y rcvd 9sur.e proce$s 6help pay = repairs1 see 8,l9e #ifjd--,9sur.e proce$s0 on page #aa = m 9=m,n4 ,l9e #igfd--,gasol9e1 diesel fuel1 & oil ,5t] ! total am.t y pd = fuel & lubricants = yr ma*9]y4 ,l9e #igie--,build+ & f;e repairs ,deduct repairs 6f;es & all build+s y us$ = f>m+1 except yr f>mh\se4 ,d n 9clude ! value ( yr [n lab\r4 ,if ! exp5diture improv$ a f;e or build+ 2y xs orig9al 3di;n1 ! co/s >e capital exp5ditures4 ,add ! exp5diture 6! co/ (! asset on yr capital co/ all[.e #gb ,*apt] #b g#ad 7,,cca7 *>ts on ,=m ,t#bjdb4 ,we expla9 ! ,,cca *>t 9 ,*apt] #c4 -------------------------------------#ae ,= m details on capital exp5ditures1 see ,9t]pret,n ,bullet9 ,,it-#abh1 ,capital ,co/ ,all[.e--,deprecia# ,prop]ty4 ,if y us$ yr f>mh\se = busi;s r1sons1 see 8,l9e #iide--,busi;s-use-(-home exp5ses0 on page #bg4 ,note ,y may h rcvd 9sur.e proce$s 6pay =! co/ ( repairs4 ,if ! 9sur.e proce$s -p5sat$ y = damages 6deprecia# prop]ty s* z build+s or f;es1 & y us$ all ( !m 6repair ! prop]ty )9 a r1sona# p]iod ( "t1 y c claim a deduc;n =! am.t sp5t on repairs on l9e #igie4 ,h["e1 y h 69clude ! 9sur.e proce$s z 9come on l9e #ifjd4 ,if y did n sp5d all (! 9sur.e proce$s on repairs )9 a r1sona# l5g? ( "t1 9clude ! unexp5d$ excess z proce$s ( 4posi;n 9 column #d ( #gc ,*apt] #b a#ae 8,>ea ;,e--,calcul,n ( capital co/ all[.e 7,,cca70 on ,=m ,t#bjdb4 ,= m details1 see 8,column #d--,proce$s ( 4posi;n 9 ! ye>0 on page #cj4 ,l9e #igif-,cle>+1 levell+1 & dra9+ l& ,5t] ! total (! exp5ses li/$ 2l4 ,9 mo/ cases1 y c deduct ! co/s =3 --cle>+ ! l& ( bru%1 trees1 roots1 /"os1 & s on2 --f/ pl\<+ ! l& = f>m use2 --build+ an unpav$ road2 & --9/all+ l& dra9age4 ,y d n h 6deduct all ! co/s 9 ! ye> y pd !m4 ,if y pd all ! co/s1 y c deduct any "p ( !m 9 ! ye> y pd !m4 ,y c c>ry =w>d any "p (! co/s y did n deduct 6ano!r ye>4 ,h["e1 if y r5t$ l& 6"s"o else1 y _c deduct ! co/s m5;n$ abv4 ,9/1d1 y may 2 a# ei to3 #gd ,*apt] #b b#ae --add ^! co/s 6! co/ (! l&2 or --if y plan on build+ on ! l& "r away1 add ^! co/s 6! co/ (! build+4 ,9 ? case1 add ! co/s =a tile1 pla/ic1 or 3crete l& dra9age sy/em 6class #h on yr ,,cca *>ts on ,=m ,t#bjdb4 ,= details1 see ,*apt] #c4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it-#dhe1 ,co/ ( ,cle>+ or ,levell+ ,l&4 ,improv+ l& ,y _c deduct ! co/ (a pav$ road4 ,9/1d1 y h 6add ? co/ 6class #ag on yr ,,cca *>ts on ,=m ,t#bjdb4 ,= details1 see ,*apt] #c4 ,y c deduct mo/ (! co/ 6drill or dig wat] wells 9 ! ye> y did ! "w4 ,h["e1 y h 6add "s (! co/s 6class #h on yr ,,cca *>ts4 ,! co/s y add 6class #h >e ^? y 9curr$ 6pur*ase & 9/all3 #ge ,*apt] #b c#ae --! cas+ & crib"w =! well2 & --! sy/em t 4tributes wat]1 9clud+ ! pump & pipes4 ,y c deduct am.ts y pd 6h public utilities br"\ 6yr f>m1 z l;g z ! 9/all,ns rema9 ! prop]ty (! util;y4 ,y c deduct am.ts y pd "u ! ,canada ,coop]ative ,associ,ns ,act 6build a 4tribu;n sy/em "u a gas s]vice 3tract4 ,l9e #igig--,crop 9sur.e ,5t] ! am.t ( deducti# premiums 6! ,crop ,9sur.e ,program4 ,d n 9clude any premiums = private1 busi;s-relat$1 or motor vehicle 9sur.e4 ,= details on o!r types ( 9sur.e1 see l9e #igfj on page #ad1 l9e #ihjd on page #af1 & l9e #ihai on page #ai4 #gf ,l9e #igih--,cu/om or d#ae 3tract "w1 & ma*9]y r5tal ,5t] ! exp5ses y 9curr$ = cu/om & 3tract "w1 & ma*9]y r5tal4 ,= example1 y cd h _h a 3tract ) "s"o :o cl1n$1 sort$1 grad$1 & spray$ ! e7s yr h5s produc$1 or "s"o :o _h facilities 6age ! *eese y produc$4 ,y cd h al 3tract$ "s"o 6d yr h>ve/+1 -b9+1 crop du/+1 or se$ cl1n+4 ,l9e #igii--,electric;y ,only ! "p ( yr electric;y co/s t relates 6yr f>m+ busi;s is deducti#4 ,6det]m9e ! "p y c deduct1 keep a sep>ate record (! am.ts t apply 6! f>mh\se1 & 6o!r f>m prop]ties4 ,= example1 ! busi;s "p ( yr electric;y exp5se w dep5d on h[ m* electric;y y us$ =! b>ns & %ops4 ,2c ! electric;y =! f>mh\se is a p]sonal exp5se1 y _c deduct x un.s y meet ! 3di;ns we expla9 9 8,l9e #iide--,busi;s- use-(-home exp5ses0 on page #bg4 #gg ,*apt] #b e#ae ,d n 9clude on ,=m ,t#bjdb ! electric;y exp5se =a h\se t y r5t$ 6"s"o else4 ,? is a r5tal exp5se1 : y 5t] on ,=m ,t#ggf1 ,/ate;t ( ,r1l ,e/ate ,r5tals4 ,y c get ,=m ,t#ggf 9 ! ,r5tal ,9come guide4 ,l9e #ihjb--,h1t+ fuel ,5t] ! total am.t y pd = natural gas1 coal1 & oil 6h1t f>m build+s4 ,al 5t] yr exp5ses = fuel us$ = cur+ toba3o1 crop dry+1 or gre5h\ses4 ,y c deduct only ! "p ( ^! co/s t relates 6yr f>m+ busi;s4 ,6det]m9e ! "p y c deduct1 keep a sep>ate record (! am.ts y pd =! f>mh\se &= o!r f>m prop]ties4 ,= example1 ! busi;s "p ( yr h1t+ fuel exp5se w dep5d on h[ m* h1t+ fuel y us$ =! b>ns & %ops4 ,2c ! h1t+ fuel =! f>mh\se is a p]sonal exp5se1 y _c deduct x un.s y meet ! 3di;ns we expla9 9 8,l9e #gh ,*apt] #b f#ae #iide--,busi;s-use-(-home exp5ses0 on page #bg4 -------------------------------------#af ,d n 9clude on yr /ate;t ( f>m+ activities ! h1t+ fuel exp5ses =a h\se t y r5t$ 6"s"o else4 ,? is a r5tal exp5se1 : y 5t] on ,=m ,t#ggf1 ,/ate;t ( ,r1l ,e/ate ,r5tals4 ,y c get ,=m ,t#ggf 9 ! ,r5tal ,9come guide4 ,l9e #ihjc--,9sur.e program ov]pay;t recapture ,5t] ! am.t ( any 9sur.e program ov]pay;t recapture y 9curr$4 ,y %d rcv an ,,agr-#a slip1 ,/ate;t ( ,f>m- ,support ,pay;ts1 id5tify+ ! am.t (! recapture 9 box #ag4 ,l9e #ihjd--,o!r 9sur.e ,5t] ! am.t ( busi;s-relat$ 9sur.e premiums y pd 69sure yr f>m build+s1 f>m #gi ,*apt] #b a#af equip;t 7exclud+ ma*9]y & motor vehicles71 live/ock1 & busi;s 9t]rup;n4 ,9 mo/ cases1 y _c deduct yr life 9sur.e premiums4 ,h["e1 if y use yr life 9sur.e policy z collat]al =a loan relat$ 6yr f>m+ busi;s1 y may 2 a# 6deduct a limit$ "p (! premiums y pd4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it- #cji1 ,premiums on ,life ,9sur.e ,us$ z ,collat]al4 ,9 mo/ cases1 y _c deduct ! am.ts y pd 69sure p]sonal prop]ty s* z yr home or c>4 ,h["e1 if y us$ ! p]sonal prop]ty = yr f>m+ busi;s1 y c deduct ! busi;s "p ( ^! co/s4 ,= m details1 see 8,l9e #iide-- ,busi;s-use-(-home exp5ses0 on page #bg & 8,l9e #ihai--,motor vehicle exp5ses0 on page #ai4 #hj ,premiums 6private h1l? b#af s]vices plans 7,,phsp7 ,y c deduct premiums pd or paya# 6a private h1l? s]vices plan 7,,phsp7 if y meet ! foll[+ 3di;ns3 --yr net 9come f self-employ;t 7exclud+ losses & ,,phsp deduc;ns7 =! curr5t or previ\s ye> is m ?an #ej@3p ( yr .total .9come1 99 or yr ..9come f s\rces o!r ?an .self- employ;t 9999 is 4#aj1jjj or less1 =! curr5t or previ\s ye>2 --y >e actively 5gag$ 9 yr f>m+ busi;s on a regul> & 3t9u\s basis1 9dividu,y or z a "pn]2 & --! premiums >e pd or paya# 69sure yrf1 yr sp\se or -mon-law "pn]1 or any memb] ( yr h\sehold4 99 ,=! purpose ( ? claim1 calculate yr .total .9come z foll[s3 --! am.t f l9e #aej ( yr #bjjb or #bjjc 9come tax return1 :i*"e #ha ,*apt] #b c#af applies1 2f y deduct any am.ts = ,,phsp's2 .m9us --! am.ts y 5t]$ on l9es #bjg1 #bab1 #bag1 #bba1 #bbi1 #bca1 & #bcb on yr #bjjb or #bjjc 9come tax return1 :i*"e applies4 9999 ,=! purpose ( ? claim1 calculate yr ..9come f s\rces o!r ?an .self- employ;t z foll[s3 --! am.t f l9e #aej ( yr #bjjb or #bjjc 9come tax return1 :i*"e applies1 2f y deduct any am.ts = ,,phsp's2 .m9us --! am.ts y 5t]$ on l9es #ace1 #acg1 #aci1 #ada1 #adc 7exclud+ busi;s losses : reduc$ ! am.t on ^? l9es71 #bjg1 #bab1 #bag1 #bba1 #bbi1 #bca1 & #bcb on yr #bjjb or #bjjc 9come tax return1 :i*"e applies4 ,y _c claim a deduc;n = ,,phsp premiums if ano!r p]son deduct$ ! am.t1 or if y or any"o else claim$ ! #hb ,*apt] #b d#af premiums z a m$ical exp5se4 ,= yr premiums 6be deducti#1 yr ,,phsp cov]age has 6be pd or paya# "u a 3tract ) "o (! foll[+3 --an 9sur.e -pany2 --a tru/ -pany2 --a p]son or "pn]%ip 9 ! busi;s ( adm9i/]+ ,,phsp's2 --a tax-exempt trade union ( : y or ! major;y ( yr employees >e memb]s2 or --a tax-exempt busi;s organiz,n or a tax-exempt profes.nal organiz,n ( : y >e a memb]4 ,= m 9=m,n on ,,phsp's1 see ,9t]pret,n ,bullet9 ,,it-#cci1 ,m1n+ ( ,private ,h1l? ,s]vices ,plan4 ,note ,9 a co/-plus plan1 ! plan w only qualify z a ,,phsp if "! is at l1/ "o employee4 ,= example1 a co/-plus plan t provides cov]age =a sole proprietor & h\sehold memb]s :o >e n #hc ,*apt] #b e#af employees w n qualify z a ,,phsp1 s9ce x is n an 9sur.e plan4 ,def9i;ns ,=! purpose ( ? claim1 ! foll[+ def9i;ns apply3 --.,qualifi$ .employees >e >m's l5g?1 full-"t employees :o h ?ree mon?s s]vice s9ce !y la/ 2came employ$ )a busi;s c>ri$ on 0y1 )a busi;s 9 : y >e a major;y 9t]e/ "pn]1 or )a busi;s c>ri$ on 0a corpor,n a6iliat$ ) y4 ,tempor>y or s1sonal "w]s >e n qualifi$ employees4 --.,>m's .l5g? .employees >e1 g5],y1 employees :o >e n relat$ 6y & :o >e n c>ry+ on yr busi;s ) y1 = example1 z yr "pn]s4 ,= m details1 see 8,non- >m's l5g? transac;n0 on page #bh4 --.,9sura# .p]sons >e p 6:om cov]age is ext5d$ & :o >e3 --qualifi$ employees2 #hd ,*apt] #b f#af --p :o wd 2 qualifi$ employees if !y _h "w$ = y = ?ree mon?s2 or --p c>ry+ on yr busi;s 79clud+ yrf & yr "pn]s74 -------------------------------------#ag ,h[ 6calculate yr maximum deduc;n = ,,phsp's ,! foll[+ sec;ns expla9 h[ 6calculate yr maximum ,,phsp deduc;n bas$ on :e!r y _h employees1 & :e!r y 9sur$ !m "?\t ! ye> or "p (! ye>4 ,f9d ! sec;n t describes yr situ,n4 ,if y did n h any employees "?\t #bjjc ,yr ,,phsp deduc;n is re/rict$ 0a doll> limit on an annual basis4 ,! limit is a maximum (3 --4#a1ejj = yrf2 --4#a1ejj = yr sp\se or -mon-law "pn] & h\sehold memb]s :o 7 #ah #he ,*apt] #b a#ag ye>s ( age or old] at ! />t (! p]iod :5 !y 7 9sur$2 & --4#gej = h\sehold memb]s "u ! age ( #ah at ! />t (! p]iod4 ,! maximum deduc;n is al limit$ 0! numb] ( "ds ! p]son 0 9sur$4 ,calculate yr all[a# maximum =! ye> 0us+ ! foll[+ =mula3 ;,a divid$ 0#cfe multipli$ by 7;,b plus ;,c71 ":3 ;,a is ! numb] ( "ds dur+ ! p]iod (! ye> :5 y 9sur$ yrf & h\sehold memb]s1 if applica#1 b 9sur$ less ?an #ej@3p ( yr employees2 ;,b equals 4#a1ejj multipli$ 0! numb] ( h\sehold memb]s #ah & ov] 9sur$ dur+ t p]iod2 & ;,c equals 4#gej multipli$ 0! numb] ( h\sehold memb]s "u #ah 9sur$ dur+ t p]iod4 #hf ,*apt] #b b#ag ,example #a ,$w9 0 a sole proprietor :o ran 8 f>m al"o 9 #bjjc4 ,he _h no employees & did n 9sure any ( 8 h\sehold memb]s4 ,$w9 pd 4#b1jjj = ,,phsp cov]age 9 #bjjc4 ,8 cov]age la/$ f ,july #a 6,decemb] #ca1 #bjjc1 a total ( #ahc "ds4 ,$w9's maximum all[a# ,,phsp deduc;n is calculat$ z foll[s3 #ahc divid$ 0#cfe multipli$ 04#a1ejj equals 4#geb ,ev5 ?\< ,$w9 pd 4#b1jjj 9 premiums 9 #bjjc1 he c only deduct 4#geb1 2c ! annual limit is 4#a1ejj & he 0 only 9sur$ = ab half (! ye>4 ,if he _h be5 9sur$ =! 5tire ye>1 8 deduc;n limit wd 2 4#a1ejj4 ,example #b ,bruce 0 a sole proprietor :o ran 8 f>m al"o 9 #bjjc4 ,he _h no employees4 ,f ,janu>y #a 6,decemb] #ca1 he #hg ,*apt] #b c#ag 9sur$ hmf1 8 wife1 & 8 two sons4 ,bruce pd 4#a1hjj 69sure hmf1 4#a1hjj 69sure 8 wife1 & 4#a1jjj = ea* ( 8 sons4 ,"o ( 8 sons 0 #ae ye>s old &! o!r turn$ #ah on ,septemb] #a4 ,bruce's ,,phsp deduc;n is limit$ 6! foll[+ am.ts3 --= hmf--4#a1ejj2 --= 8 wife--4#a1ejj2 --= 8 #ae-ye>-old son--4#gej2 & --=! son :o turn$ #ah--4#gej4 ,! 4#gej limit applies 2c he did n turn #ah until af ! 9sur$ p]iod 2gan4 ,if y _h employees "?\t #bjjc ,if y _h at l1/ "o qualifi$ employee "?\t all ( #bjjc1 & at l1/ #ej@3p (! 9sura# p]sons 9 yr busi;s 7 qualifi$ employees1 yr claim = ,,phsp premiums is limit$ 9 a di6]5t way4 ,yr limit is bas$ on ! l[e/ co/ ( .equival5t .cov]age = ea* ( yr qualifi$ employees4 ,see #hh ,*apt] #b d#ag page #af =a def9i;n ( 8qualifi$ employee40 ,use ! foll[+ /eps 6calculate yr maximum all[a# claim =! ,,phsp premiums pd or paya# = yrf1 yr sp\se or -mon-law "pn]1 & yr h\sehold memb]s4 ,= ea* ( yr qualifi$ employees1 d ! foll[+ calcul,n3 ;,x multipli$ 0;,y equals ;,z1 ":3 ;,x equals ! am.t y wd pay 6provide yrf1 yr sp\se or -mon-law "pn]1 & yr h\sehold memb]s ) cov]age equival5t 6t provid$ 6a "picul> employee1 8 or h] sp\se or -mon-law "pn] & h\sehold memb]s2 ;,y equals ! p]c5tage (! premium y pay = t "picul> employee2 & ;,z equals yr limit bas$ on t "picul> employee4 ,example ,y h "o qualifi$ employee4 ,6provide yrf ) cov]age equival5t 6his or h]s1 y pay a premium ( 4#a1hjj4 ,y pay #hi ,*apt] #b e#ag #fj@3p ( yr employee's premium4 ,yr deduc;n limit = yrf is 4#a1jhj1 calculat$ z foll[s3 4#a1hjj 7am.t ;,x7 multipli$ 0#fj@3p 7am.t ;,y7 equals 4#a1jhj 7am.t ;,z74 ,! maximum y c claim is 4#a1jhj1 if y _h only "o qualifi$ employee4 ,if y _h m ?an "o qualifi$ employee1 y h 6d ! ;,x multipli$ 0;,y equals ;,z calcul,n = ea* employee4 ,yr limit is !n ! l1/ am.t y calculate = ea* & e employee4 ,example ,y h ?ree qualifi$ employees1 ,jack1 ,jill1 & ,sue4 ,! foll[+ ta# %[s h[ m* y wd pay = cov]age equival5t 6ea* ( _!s1 &! p]c5tage ( ea* employee's premium t y pay4 #ij ,*apt] #b f#ag ,transcrib]'s note3 7,! foll[+ 0 set-up 9 ?ree columns4 ,column #a3 ,"n ( employee ,column #b3 ,co/ ( equival5t cov]age = yrf ,column #c3 ,p]c5tage (! employee's premium y pay7 ,"n3 ,jack ,co/3 4#a1ejj ,p]c5tage3 #bj@3p ,"n3 ,jill ,co/3 4#a1hjj ,p]c5tage3 #ej@3p ,"n3 ,sue ,co/3 4#a1djj ,p]c5tage3 #dj@3p -------------------------------------#ah ,y h 6d ! foll[+ ?ree calcul,ns3 ,jack3 4#a1ejj 7;,x7 multipli$ 0#bj@3p 7;,y7 equals 4#cjj 7;,z7 #ia ,*apt] #b a#ah ,jill3 4#a1hjj 7;,x7 multipli$ 0#ej@3p 7;,y7 equals 4#ijj 7;,z7 ,sue3 4#a1djj 7;,x7 multipli$ 0#dj@3p 7;,y7 equals 4#efj 7;,z7 ,yr limit is 4#cjj1 ! l1/ (! am.ts calculat$ =! ?ree employees4 ,note ,if y h a qualifi$ employee ) no cov]age1 y _c claim yr ,,phsp premiums z a deduc;n f self-employ;t 9come4 ,y may1 h["e1 2 a# 6claim !m z m$ical exp5ses4 ,if y _h employees "?\t #bjjc b ! numb] ( .>m's .l5g? employees y 9sur$ 0 less ?an #ej@3p ( all (! 9sura# p]sons 9 yr busi;s1 yr maximum all[a# deduc;n is ! .less] (! foll[+ two am.ts3 ,am.t #a ,det]m9e ? am.t 0! us+ ! foll[+ =mula3 #ib ,*apt] #b b#ah ;,a divid$ 0#cfe multipli$ by 7;,b plus ;,c71 ":3 ;,a is ! numb] ( "ds dur+ ! p]iod (! ye> :5 y 9sur$ yrf & h\sehold memb]s1 if applica#1 b 9sur$ less ?an #ej@3p ( yr employees2 ;,b equals 4#a1ejj multipli$ 0! numb] ( h\sehold memb]s #ah & ov] 9sur$ dur+ t p]iod2 & ;,c equals 4#gej multipli$ 0! numb] ( h\sehold memb]s "u #ah 9sur$ dur+ t p]iod4 ,am.t #b ,if y _h at l1/ "o qualifi$ employee1 am.t #b is ! l[e/ co/ ( equival5t cov]age = ea* qualifi$ employee1 calculat$ 0us+ ! ;,x multipli$ 0;,y equals ;,z =mula on page #ag4 ,if y did n h at l1/ "o qualifi$ employee1 ! limit 9 am.t #a w apply4 #ic ,if y _h employees = "p (! c#ah ye> ,=! "p (! ye> :5 y _h at l1/ "o qualifi$ employee & yr 9sura# >m's l5g? employees repres5t$ at l1/ #ej@3p ( all ! 9sura# p]sons 9 yr busi;s1 calculate yr limit .= .t .p]iod ! same way z 9 ! previ\s sec;n call$ 8,if y _h employees "?\t #bjjc40 ..,=! rema9d] (! .ye> :5 y _h no employees or :5 yr 9sura# >m's l5g? employees repres5t$ less ?an #ej@3p ( all ! 9sura# p]sons 9 yr busi;s1 yr deduc;n limit = t rema9+ p]iod is ! less] (! foll[+ two am.ts3 ,am.t #a ;,a divid$ 0#cfe multipli$ by 7;,b plus ;,c71 ":3 ;,a is ! numb] ( "ds dur+ ! p]iod (! ye> :5 y 9sur$ yrf & h\sehold memb]s1 if applica#1 b 9sur$ less ?an #ej@3p ( yr employees2 #id ,*apt] #b d#ah ;,b equals 4#a1ejj multipli$ 0! numb] ( h\sehold memb]s #ah & ov] 9sur$ dur+ t p]iod2 & ;,c equals 4#gej multipli$ 0! numb] ( h\sehold memb]s "u #ah 9sur$ dur+ t p]iod4 ,am.t #b ,if y _h at l1/ "o qualifi$ employee1 am.t #b is ! l[e/ co/ ( equival5t cov]age = ea* qualifi$ employee1 calculat$ 0us+ ! ;,x multipli$ 0;,y equals ;,z =mula on page #ag4 ,if y did n h at l1/ "o qualifi$ employee1 ! limit 9 am.t #a w apply4 ,undeduct$ premiums ,if y deduct only a "p ( yr ,,phsp premium at l9e #ihjd & y pd ! premium 9 ! ye>1 y c 9clude ! undeduct$ bal.e 9 ! calcul,n ( yr non-refunda# m$ical exp5se #ie ,*apt] #b e#ah tax cr$it4 ,= details1 see 8,l9e #ccj0 9 yr ,g5]al ,9come ,tax & ,b5efit ,guide4 ,l9e #ihje--,9t]e/ ,5t] ! 9t]e/ y pd on m"oy y borr[$ 6e>n f>m+ 9come1 s* z 9t]e/ on a loan y us$ 6buy a bal]4 ,d n 9clude ! 9t]e/ on m"oy y borr[$ 6buy a motor vehicle us$ 9 yr f>m+ busi;s4 ,9clude ? am.t on 8,l9e #ihai--,motor vehicle exp5ses10 z expla9$ on page #ai4 ,y c deduct 9t]e/ y pd on any r1l e/ate mortgage y 9curr$ 6e>n f>m+ 9come1 b y _c deduct ! pr9cipal "p ( loan or mortgage pay;ts4 ,d n deduct 9t]e/ on m"oy y borr[$ = p]sonal purposes or 6pay ov]due 9come taxes4 ,y mim+ busi;s1 b h /opp$ us+ = ? purpose 2c y >e no l;g] 9 busi;s4 ,g5],y1 ^! exp5ses >e n deducti# z busi;s exp5ses4 ,h["e1 y may 2 a# #if ,*apt] #b f#ah 6deduct 9t]e/ exp5ses = prop]ty if xs use *ang$ af #aiic4 ,l9e #ihjh--,(fice exp5ses ,5t] ! am.t ( (fice exp5ses1 s* z /,n]y1 9voices1 receipt & a3.t+ books1 & any o!r (fice supplies4 ,l9e #ihji--,legal & a3.t+ fees ,9 mo/ cases1 y c deduct legal fees y 9curr$ = yr f>m+ busi;s4 ,al1 y c deduct any a3.t+ or bookkeep+ fees y 9curr$ 6h "s"o keep yr books & records1 & prep>e yr 9come tax return & ,,gst/,,hst returns4 ,if y pd a3.t+ or legal fees 6file an app1l ag/ an assess;t or deci.n "u ! ,9come ,tax ,act1 ! ,canada ,p5.n ,plan1 ! ,quebec ,p5.n ,plan1 ! ,employ;t ,9sur.e ,act1 or ! ,unemploy;t ,9sur.e ,act1 d n deduct !m "h4 ,deduct ^! #ig ,*apt] #b g#ah fees on l9e #bcb ( yr 9come tax return4 ,y %d subtract any reimburse;t f ! applica# fees1 & 5t] ! result on l9e #bcb4 ,if y deduct$ ^! types ( fees 9 a previ\s ye> & rcvd a reimburse;t 9 #bjjc1 5t] ! am.t (! reimburse;t on l9e #acj ( yr 9come tax return4 -------------------------------------#ai ,d n deduct any legal or o!r fees y 9curr$ 6buy prop]ty1 s* z l&1 build+s1 & equip;t4 ,add ^! fees 6! adju/$ co/ base (! prop]ty if ! prop]ty is us$ 9 yr f>m+ busi;s4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it-#ii1 ,legal & ,a3.t+ ,fees4 ,l9e #ihaj--,prop]ty taxes ,5t] ! am.t ( l&1 municipal1 & r1lty taxes y pd = prop]ty us$ 9 yr f>m+ busi;s4 ,s9ce ! municipal tax =! f>mh\se is a p]sonal exp5se1 y _c deduct x un.s y meet ! 3di;ns we expla9 9 8,l9e #ih ,*apt] #b a#ai #iide--,busi;s-use-(-home exp5ses0 on page #bg4 ,if y >e repay+ a loan = l& dra9age "? yr prop]ty tax pay;ts 6yr t[n%ip1 y _c 9clude ! am.t y repd z "p ( yr prop]ty tax exp5se4 ,l9e #ihaa--,r5t 7l&1 build+s1 & pa/ure7 ,5t] ! am.t ( r5t exp5ses y pd = l&1 build+s1 & pa/ure y us$ = yr f>m+ busi;s4 ,if y f>m$ on a %>ecrop basis & pd yr l&"l a %>e (! crop1 y c d ."o (! foll[+3 --,add 6yr 9come ! fair m>ket value (! crops y gave yr l&"l4 ,deduct ! same am.t z a r5t exp5se 7see page #bh =! def9i;n ( 8fair m>ket value074 --,d n 9clude ! fair m>ket value 9 9come & d n deduct ! am.t z a r5t exp5se4 #ii ,l9e #ihad--,sal>ies1 b#ai wages1 & b5efits 79clud+ employ]'s 3tribu;ns7 ,5t] ! am.t ( gross wages y pd 6yr employees4 ,9clude ! co/ ( bo>d = hir$ help4 ,h["e1 d n 9clude ! co/ ( bo>d = dep5dants4 ,z ! employ]1 al 9clude 9 ? total yr %>e (! ,canada ,p5.n ,plan or ,quebec ,p5.n ,plan 3tribu;ns & ,employ;t ,9sur.e premiums4 ,d n deduct ! am.ts y )held f yr employees' remun],n1 s9ce y alr deduct$ !m 9 ! am.t y claim$ z wages4 ,keep a detail$ record (! am.ts y pd 6ea* employee &! employee's "n1 a4ress1 & social 9sur.e numb]4 ,d n deduct sal>ies or draw+s pd or paya# 6yrf or 6a "pn]4 ,y c deduct ! wages y pd 6yr *1 z l;g z y meet .all ^! 3di;ns3 --y pd ! sal>y 9 ca% or 9 k9d2 --! "w yr * did 0 nec = y 6e>n f>m+ 9come2 #ajj ,*apt] #b c#ai --! sal>y 0 r1sona# :5 y 3sid] yr *'s age2 & --! am.t y pd is :at y wd h pd "s"o else 6d ! same "w4 ,keep docu;ts z pro( (! sal>y y pd 6yr *4 ,if y pd yr * 0*eque1 keep ! c.ell$ *eque4 ,if y pd ca%1 h yr * sign a receipt4 ,y may h pd wages 9 k9d 6yr *4 ,= example1 y may h giv5 yr * live/ock or gra9 9/1d ( ca%1 & deduct$ ! wages z an exp5se4 ,if y did ?3 --yr * 9cludes 9 9come ! value (! live/ock or gra92 & --y 9clude ! same am.t 9 yr gross sales =! ye>4 ,y c al deduct wages y pd 6yr sp\se or -mon-law "pn]1 z l;g z y foll[ ! same rules1 & z l;g z t p]son is n a "pn] 9 yr busi;s4 ,if y 7 a "pn] 9 a f>m "pn]%ip t employ$ yr sp\se or -mon-law "pn]1 ! f>m "pn]%ip c deduct t p]son's #aja ,*apt] #b d#ai wages if x 9curr$ ! exp5se 6e>n f>m+ 9come1 &! wages 7 r1sona#4 ,l9e #ihai--,motor vehicle exp5ses 7n 9clud+ ,,cca7 ,5t] ! am.t ( motor vehicle exp5ses1 exclud+ ! capital co/ all[.e 7,,cca74 ,= details on ,,cca1 see ,*apt] #c4 ,! k9d ( vehicle y [n c a6ect ! exp5ses y c deduct4 ,= 9come tax purposes1 "! >e ?ree types ( vehicles y %d "k ab4 ,!y >e3 --motor vehicles2 --automobiles2 & --pass5g] vehicles4 ,if y [n$ or l1s$ a pass5g] vehicle1 "! may 2 a limit on ! am.ts y c deduct = ,,cca1 9t]e/1 & l1s+ co/s4 ,we cov] ! ,,cca limits 9 ,*apt] #c4 ,y w f9d ! limits on 9t]e/ & l1s+ co/s lat] 9 ? sec;n4 #ajb ,*apt] #b e#ai ,a .motor .vehicle is an automotive vehicle = use on /reets or hiry pass5g]s on /reets & hit \tl9e --a cle>ly m>k$ police & fire em]g5cy-response vehicle2 ,5d \tl9e --a motor vehicle y b"\ 6use m ?an #ej@3p z a taxi1 a bus us$ 9 ! busi;s ( transport+ pass5g]s1 or a he>se 9 a fun]al busi;s2 --a motor vehicle y b"\ 6sell1 r5t1 or l1se 9 a motor vehicle sales1 r5tal1 or l1s+ busi;s2 --a motor vehicle 7except a he>se7 y b"\ 6use 9 a fun]al busi;s 6transport pass5g]s2 #ajc ,*apt] #b f#ai --a van1 pick-up truck1 or simil> vehicle t s1ts no m ?an ! driv] & two pass5g]s :1 9 ! tax ye> -------------------------------------#bj y b"\ or l1s$ x1 0 us$ m ?an #ej@3p 6transport gds or equip;t 6e>n 9come2 --a van1 pick-up truck1 or simil> vehicle :1 9 ! tax ye> y b"\ or l1s$ x1 0 us$ #ij@3p or m 6transport gds1 equip;t1 or pass5g]s 6e>n 9come2 & ,/>t \tl9e --a pick-up truck t1 9 ! tax ye> y b"\ or l1s$ x1 0 us$ m ?an #ej@3p 6transport gds1 equip;t1 or pass5g]s :ile e>n+ or produc+ 9come at a remote "w loc,n or at a special "w site t is at l1/ #cj kilometres f ! ne>e/ -mun;y hav+ a popul,n ( at l1/ #dj1jjj p]sons4 ,5d \tl9e #ajd ,*apt] #b a#bj ,a .pass5g] .vehicle is an automobile y b"\ af ,june #ag1 #aihg4 ,a pass5g] vehicle is al an automobile t y l1s$ "u a l1se agree;t y 5t]$ 9to1 ext5d$1 or renew$ af ,june #ag1 #aihg4 ,mo/ c>s1 /,n wagons1 vans1 & "s pick- up trucks >e pass5g] vehicles4 ,!y >e subject 6! limits = ,,cca1 9t]e/1 & l1s+4 ,! foll[+ *>t w help y det]m9e if y h a motor vehicle1 an automobile1 or a pass5g] vehicle4 ,! *>t does n cov] e situ,n1 b x gives "s (! ma9 def9i;ns4 ,! *>t is =a vehicle y buy or l1se af ,june #ag1 #aihg1 & use 6e>n busi;s 9come4 ,transcrib]'s note3 7,! foll[+ ta# 0 set-up 9 f\r columns4 ,column #a3 ,type ( vehicle ,column #b3 ,s1t+ 79cludes driv]7 ,column #c3 ,busi;s use 9 ye> b"\ or l1s$ ,column #d3 ,vehicle def9i;n7 #aje ,vehicle def9i;ns b#bj ,type ( vehicle3 ,c\pe1 s$an1 /,n wagon1 sports c>1 or luxury c> ,s1t+ 79cludes driv]73 #a 6#i ,busi;s use 9 ye> b"\ or l1s$3 #a@3p 6#ajj@3p ,vehicle def9i;n3 pass5g] ,type ( vehicle3 ,pick-up truck us$ 6transport gds or equip;t ,s1t+ 79cludes driv]73 #a 6#c ,busi;s use 9 ye> b"\ or l1s$3 m ?an #ej@3p ,vehicle def9i;n3 motor ,type ( vehicle3 ,pick-up truck 7o!r ?an abv7 99 ,s1t+ 79cludes driv]73 #a 6#c ,busi;s use 9 ye> b"\ or l1s$3 #a@3p 6#ajj@3p ,vehicle def9i;n3 pass5g] #ajf ,*apt] #b c#bj ,type ( vehicle3 ,pick-up truck ) ext5d$ cab us$ 6transport gds1 equip;t1 or pass5g]s ,s1t+ 79cludes driv]73 #d 6#i ,busi;s use 9 ye> b"\ or l1s$3 #ij@3p or m ,vehicle def9i;n3 motor ,type ( vehicle3 ,pickup truck ) ext5d$ cab 7o!r ?an abv7 99 ,s1t+ 79cludes driv]73 #d 6#i ,busi;s use 9 ye> b"\ or l1s$3 #a@3p 6#ajj@3p ,vehicle def9i;n3 pass5g] ,type ( vehicle3 ,sport util;y us$ 6transport gds1 equip;t1 or pass5g]s ,s1t+ 79cludes driv]73 #d 6#i ,busi;s use 9 ye> b"\ or l1s$3 #ij@3p or m ,vehicle def9i;n3 motor #ajg ,*apt] #b d#bj ,type ( vehicle3 ,sport util;y 7o!r ?an abv7 ,s1t+ 79cludes driv]73 #d 6#i ,busi;s use 9 ye> b"\ or l1s$3 #a@3p 6#ajj@3p ,vehicle def9i;n3 pass5g] ,type ( vehicle3 ,van or m9ivan us$ 6transport gds or equip;t ,s1t+ 79cludes driv]73 #a 6#c ,busi;s use 9 ye> b"\ or l1s$3 m ?an #ej@3p ,vehicle def9i;n3 motor ,type ( vehicle3 ,van or m9ivan 7o!r ?an abv7 ,s1t+ 79cludes driv]73 #a 6#c ,busi;s use 9 ye> b"\ or l1s$3 #a@3p 6#ajj@3p ,vehicle def9i;n3 pass5g] #ajh ,*apt] #b e#bj ,type ( vehicle3 ,van or m9ivan us$ 6transport gds1 equip;t1 or pass5g]s ,s1t+ 79cludes driv]73 #d 6#i ,busi;s use 9 ye> b"\ or l1s$3 #ij@3p or m ,vehicle def9i;n3 motor ,type ( vehicle3 ,van or m9ivan 7o!r ?an abv7 ,s1t+ 79cludes driv]73 #d 6#i ,busi;s use 9 ye> b"\ or l1s$3 #a@3p 6#ajj@3p ,vehicle def9i;n3 pass5g] ,/>t \tl9e 99 ,a vehicle 9 ? category t is us$ m ?an #ej@3p 6transport gds1 equip;t1 or pass5g]s :ile e>n+ or produc+ 9come at a remote "w loc,n or at a special "wsite t is at l1/ #cj kilometres f ! ne>e/ -mun;y hav+ a #aji ,*apt] #b f#bj popul,n ( at l1/ #dj1jjj p]sons is 3sid]$ a .motor .vehicle4 ,5d \tl9e ,busi;s use (a motor vehicle ,if y us$ yr motor vehicle = p]sonal & busi;s r1sons1 y c deduct ! "p ( yr exp5ses t 0 = f>m+-busi;s use4 ,f>m+ busi;s use 9cludes ?+s s* z trips 6pick up "ps & f>m supplies1 or 6deliv] gra94 ,if y did n live on yr f>m1 ! travel 2t ! f>m & yr home 0 n busi;s travel4 ,keep a record (! total kilometres y drive &! kilometres y drive = f>m+ busi;s use4 ,al1 keep track ( :at x co/s y 6run & ma9ta9 ! motor vehicle = yr fiscal p]iod4 ,example ,murray's f>m+ busi;s has a ,decemb] #ca ye>-5d4 ,he [ns a truck t is n a pass5g] vehicle4 ,he uses ! truck 6pick up supplies & equip;t4 #aaj ,*apt] #b g#bj ,murray kept ! foll[+ records = 8 #bjjc fiscal p]iod3 ,f>m+ busi;s kilometres """"" #bg1jjj km ,total kilometres """"""""""" #cj1jjj km ,exp5ses3 ,gasol9e & oil """"""""""""""""" 4#c1ejj ,repairs & ma9t5.e """"""""""""""" 4#ejj ,9sur.e """""""""""""""""""""""" 4#a1jjj ,9t]e/ 7on loan 6buy truck7 """" 4#a1ijj ,lic;e & regi/r,n fees """"""""""" 4#ajj ,total exp5ses =! truck """""""" 4#g1jjj -------------------------------------#ba ,? is h[ ,murray det]m9es ! motor vehicle exp5ses he c deduct 9 8 #bjjc fiscal p]iod3 #bg1jjj 7f>m+ busi;s kilometres7 divid$ 0#cj1jjj 7total kilometres7 multipli$ 04#g1jjj equals 4#f1cjj #aaa ,*apt] #b a#ba ,murray c deduct 4#f1cjj on l9e #ihai ( ,=m ,t#bjdb z motor vehicle exp5ses = 8 #bjjc fiscal p]iod4 ,if y rcvd 9sur.e proce$s 6help pay = repairs1 see 8,l9e #ifjd--,9sur.e proce$s0 on page #aa = m 9=m,n4 ,9t]e/ on ! m"oy y borr[ =a pass5g] vehicle ,:5 y us$ a pass5g] vehicle 6e>n f>m+ busi;s 9come1 "! is a limit on ! am.t ( 9t]e/ y c deduct4 ,:e!r y use ! ca% or a3rual me?od 6det]m9e yr 9come1 -plete ! foll[+ *>t 6calculate ! 9t]e/ y c deduct4 ,if y us$ yr pass5g] vehicle = bo? p]sonal & f>m+ busi;s use1 -plete ! *>t 2f y det]m9e h[ m* 9t]e/ y c deduct z an exp5se4 #aab ,9t]e/ *>t b#ba 7,a7 ,total 9t]e/ y pd 7ca% me?od7 or t is paya# 7a3rual me?od7 9 yr fiscal ye>4 """"""" 4#---- 7,b7 4#aj 99 multipli$ 0numb] ( "ds 9 yr fiscal ye> = : 9t]e/ 0 pd or paya# """"""""""""""""" 4#---- ,yr availa# 9t]e/ exp5se is ei ;,a or ;,b1 :i*"e am.t is less 4#---- 99 ,= pass5g] vehicles b"\3 --f ,septemb] #a1 #aihi1 6,decemb] #ca1 #aiif1 & f #bjja 6#bjjc1 use 4#aj2 --f #aiig 6#bjjj1 use 4#h.cc4 ,example ,h1!r's f>m+ busi;s has a ,decemb] #ca ye>-5d4 ,on ,janu>y #a1 #bjjc1 %e b"\ a new pass5g] vehicle t %e uses = bo? p]sonal & busi;s use4 ,%e borr[$ m"oy 6buy ! vehicle1 &! 9t]e/ %e pd 9 h] #bjjc fiscal p]iod 0 4#b1bjj4 #aac ,*apt] #b c#ba ,s9ce ! c> t ,h1!r b"\ is a pass5g] vehicle1 "! is a limit on ! 9t]e/ %e c deduct4 ,h1!r's availa# 9t]e/ is ei "o ( ^! two am.ts1 :i*"e is less3 --4#b1bjj 7! total 9t]e/ %e pd 9 h] #bjjc fiscal p]iod72 or --4#c1fej 74#aj multipli$ 0#cfe "ds74 ,h1!r kept ! foll[+ records = h] #bjjc fiscal p]iod3 ,f>m+ busi;s kilometres """"" #bj1jjj km ,total kilometres """"""""""" #be1jjj km ,exp5ses3 ,gasol9e & oil """"""""""""""""" 4#b1jjj ,repairs & ma9t5.e """"""""""""" 4#a1jjj ,9sur.e """""""""""""""""""""""" 4#a1ijj ,9t]e/ 7on loan 6buy vehicle """ 4#b1bjj ,lic;e & regi/r,n """"""""""""""""" 4#fj ,total vehicle exp5ses """"""""" 4#g1afj #aad ,*apt] #b d#ba ,"h is h[ ,h1!r det]m9es ! motor vehicle exp5ses %e c deduct 9 h] #bjjc fiscal p]iod3 #bj1jjj 7f>m+ busi;s kilometres7 divid$ 0#be1jjj 7total kilometres7 multipli$ 04#g1afj equals 4#e1gbh ,h1!r c deduct 4#e1gbh on l9e #ihai ( ,=m ,t#bjdb z motor vehicle exp5ses = h] #bjjc fiscal p]iod4 ,l1s+ co/s =a pass5g] vehicle ,:5 y use a pass5g] vehicle 6e>n f>m+ busi;s 9come1 "! is a limit on ! am.t (! l1s+ co/s y c deduct4 ,6calculate yr eligi# l1s+ co/s1 -plete ! *>t4 8,eligi# l1s+ co/s = pass5g] vehicles0 on page #bb4 ,! l1se agree;t = yr pass5g] vehicle may 9clude items s* z 9sur.e1 ma9t5.e1 & #aae ,*apt] #b e#ba taxes4 ,9 ? case1 9clude !m z "p (! l1se *>ges on l9e ;,a :5 y -plete ! *>t4 ,note ,g5],y1 l1ses 9clude taxes s* z ,,gst & ,,pst1 or ,,hst4 ,9clude !m on l9e ;,a4 ,if y pay = items s* z 9sur.e & ma9t5.e sep>ately1 d n 9clude !m 9 ! am.t on l9e ;,a4 ,claim !m sep>ately on ! appropriate l9es on ,=m ,t#bjdb4 -------------------------------------#bb ,eligi# l1s+ co/s = pass5g] vehicles 7,a7 ,total l1se *>ges 9curr$ 9 yr #bjjc fiscal p]iod =! vehicle """"""""""""""""""""""" 4#---- 7,b7 ,total l1se pay;ts deduct$ 2f yr #bjjc fiscal p]iod =! vehicle """"""""""""""""""""""" 4#---- 7,c7 ,total numb] ( "ds ! vehicle 0 l1s$ 9 yr #bjjc & previ\s fiscal p]iods """"""""" 4#---- #aaf ,*apt] #b a#bb 7,d7 ,manufactur]'s li/ price """ 4#---- 7,e7 ,! am.t on l9e ;,d or 74#ce1bid plus ,,gst & ,,pst1 or ,,hst on 4#ce1bid71 :i*"e is m 4#---- multipli$ 0#he@3p 4#---- 7,f7 ,774#hjj plus ,,gst & ,,pst1 or ,,hst on 4#hjj7 multipli$ 0l9e ;,c7' divid$ 0#cj m9us l9e ;,b """"""""""""" 4#---- 7,g7 ,774#cj1jjj plus ,,gst & ,,pst1 or ,,hst on 4#cj1jjj7 multipli$ 0l9e ;,a7' divid$ 0l9e ;,e """""""""""""""""""""" 4#---- ,eligi# l1s+ co/3 ,l9e ;,f or l9e ;,g1 :i*"e is less """""""" 4#---- ,if y 5t]$ 96a l1se agree;t =a pass5g] vehicle 2f ,janu>y #a1 #bjja1 make ^! *anges 6! *>t3 #aag ,*apt] #b b#bb ,transcrib]'s note3 7,! foll[+ 0 set-up 9 five columns4 ,column #a3 ,fiscal ye> y 5t]$ 96l1se agree;t ,column #b3 ,af #aiij & 2f #aiig ,column #c3 #aiig ,column #d3 #aiih & #aiii ,column #e3 #bjjj7 ,fiscal ye> --:5 calculat+ l9e ;,e1 replace 4#ce1bid )3 ,af #aiij & 2f #aiig3 4#bh1bce #aiig3 4#bi1dab #aiih & #aiii3 4#cj1ehh #bjjj3 4#ca1gfe ,fiscal ye> --:5 calculat+ l9e ;,f1 replace 4#hjj )3 ,af #aiij & 2f #aiig3 4#fej #aiig3 4#eej #aiih & #aiii3 4#fej #bjjj3 4#gjj #aah ,*apt] #b c#bb ,fiscal ye> --:5 calculat+ l9e ;,g1 replace 4#cj1jjj )3 ,af #aiij & 2f #aiig3 4#bd1jjj #aiig3 4#be1jjj #aiih & #aiii3 4#bf1jjj #bjjj3 4#bg1jjj ,repay;ts & imput$ 9t]e/ ,:5 y l1se a pass5g] vehicle1 y may h a repay;t [+ 6y1 or y may h imput$ 9t]e/4 ,if ? is ! case1 y w n 2 a# 6use ! *>t4 ,imput$ 9t]e/ is 9t]e/ t wd 2 [+ 6y if 9t]e/ 7 pd on ! m"oy y deposit$ 6l1se a pass5g] vehicle4 ,calculate imput$ 9t]e/ = l1s+ co/s on a pass5g] vehicle only if .all (! foll[+ apply3 --y made "o or m deposits =! l1s$ pass5g] vehicle2 --! deposit is1 or ! deposits >e1 refunda#2 & #aai ,*apt] #b d#bb --! total (! deposits is m ?an 4#a1jjj4 ,= m 9=m,n1 see ,9t]pret,n ,bullet9 ,,it-#eba1 ,motor ,vehicle ,exp5ses ,claim$ 0,self-,employ$ ,9dividuals4 ,m ?an "o vehicle ,if y us$ m ?an "o motor vehicle = yr f>m+ busi;s1 keep a sep>ate record t %[s ! total kilometres & f>m+ busi;s kilometres y drove1 &! co/ 6run & ma9ta9 ea* vehicle4 ,calculate ea* vehicle's exp5ses sep>ately4 ,jo9t [n]%ip (a pass5g] vehicle ,if y & "s"o else [n$ or l1s$ ! same pass5g] vehicle1 ! limits on ,,cca1 9t]e/1 & l1s+ co/s / apply4 ,! am.t y c deduct z jo9t [n]s _c 2 m ?an ! am.t "o p]son [n+ or l1s+ ! pass5g] vehicle cd deduct4 ,ea* ( y has 6claim #abj ,*apt] #b e#bb exp5ses 9 propor;n 6yr %>e (! pass5g] vehicle4 ,yr %>e is bas$ on ! "p (! pur*ase price or l1se co/s t y pd4 ,= m details on motor vehicle exp5ses1 see ,9t]pret,n ,bullet9 ,,it-#eba1 ,motor ,vehicle ,exp5ses ,claim$ 0,self- ,employ$ ,9dividuals4 ,l9e #ihbj--,small tools ,if a tool co/s y less ?an 4#bjj1 deduct xs full co/4 ,if x co/s y 4#bjj or m1 add ! co/ 6yr ,,cca s*$ule z class #h prop]ty4 ,= details1 see ,*apt] #c4 ,l9e #iicg--,m&atory 9v5tory adju/;t 9clud$ 9 #bjjb ,if y 9clud$ an am.t =! m&atory 9v5tory adju/;t 7,,mia7 on l9e #iidb 9 yr #bjjb fiscal p]iod1 deduct ! am.t z an exp5se 9 yr #bjjc fiscal p]iod4 ,d n 9clude ! valu,n ( 9v5tories if y >e us+ ! a3rual me?od ( a3.t+4 ,= #aba ,*apt] #b f#bb details ab ! a3rual me?od1 see 8,report+ me?ods0 on page #d4 ,= m details on ,,mia1 see l9e #iidb on page #bd4 -------------------------------------#bc ,l9e #iich--,op;nal 9v5tory adju/;t 9clud$ 9 #bjjb ,if y 9clud$ an am.t =! op;nal 9v5tory adju/;t 7,,oia7 on l9e #iida 9 yr #bjjb fiscal p]iod1 deduct ! am.t z an exp5se 9 yr #bjjc fiscal p]iod4 ,d n 9clude ! valu,n ( 9v5tories if y >e us+ ! a3rual me?od ( a3.t+4 ,= details ab ! a3rual me?od1 see 8,report+ me?ods0 on page #d4 ,= m details on ,,oia1 see l9e #iida on ? page4 ,l9e #igij--,o!r exp5ses ,y may h o!r exp5ses t >e n specific,y cov]$ on ,=m ,t#bjdb4 ,we expla9 "s ( ^! #abb ,*apt] #b a#bc o!r exp5ses 9 ! foll[+ p>agraphs4 ,deduct ^! o!r exp5ses on ^! l9es4 ,y c pay "s ( yr exp5ses 0hav+ !m deduct$ f yr ca% gra9 tickets or gra9 /abiliz,n pay;ts4 ,^! exp5ses 9clude se$1 fe$1 sprays1 or f]tiliz]s4 ,y c deduct ^! exp5ses if y 9clude 9 yr 9come ! gross am.t (! gra9 sale or /abiliz,n pay;t4 ,pay;t 9 k9d ,if y made a pay;t 9 k9d =a f>m+ busi;s exp5se1 9clude ! fair m>ket value (! gd or s]vice 9 9come4 ,deduct ! same am.t z an exp5se4 ,= m details1 see ! def9i;n ( 8pay;t 9 k9d0 on page #ab4 ,l1s+ co/s ,5t] ! exp5ses y 9curr$ 9 yr #bjjc fiscal p]iod = l1s+ prop]ty us$ 6e>n yr f>m+ 9come4 ,if y l1se a pass5g] #abc ,*apt] #b b#bc vehicle1 see 8,l9e #ihai--,motor vehicle exp5ses0 on page #ai4 ,if y 5t]$ 96a l1se agree;t af ,april #bf1 #aihi1 y c *oose 6tr1t yr l1se pay;ts z -b9$ pay;ts ( pr9cipal & 9t]e/4 ,h["e1 y &! p]son f :om y >e l1s+ h 6agree 6tr1t ! pay;ts ? way4 ,9 ? case1 we 3sid] t3 --y h b"\ ! prop]ty r ?an l1s$ x2 & --y h borr[$ an am.t equal 6! fair m>ket value (! l1s$ prop]ty4 ,we def9e 8fair m>ket value0 on page #bh4 ,y c deduct ! 9t]e/ "p (! pay;t z an exp5se4 ,y c al claim ,,cca on ! prop]ty4 ,= details on ,,cca1 see ,*apt] #c4 ,y c make ? *oice z l;g z ! prop]ty qualifies &! total fair m>ket value 7,,fmv7 ( all ! prop]ty t is subject 6! l1se is m ?an 4#be1jjj4 ,= example1 a -b9e t y l1se )a ,,fmv ( 4#ce1jjj qualifies4 ,h["e1 (fice furniture & automobiles (t5 d n4 #abd ,*apt] #b c#bc ,6make ? *oice reg>d+ yr l1se1 -plete ."o (! foll[+ =ms & file x ) yr 9come tax return =! ye> y make ! l1se agree;t3 --,=m ,t#bade1 ,elec;n 9 ,respect (! ,l1s+ ( ,prop]ty2 or --,=m ,t#badf1 ,elec;n 9 ,respect ( ,assign$ ,l1ses or ,subl1s$ ,prop]ty4 ,adv]tis+ ,deduct ! co/ ( any adv]tis+ d"o = yr f>m+ busi;s4 ,teleph"o exp5ses ,d n deduct ! basic mon?ly rate ( yr home teleph"o4 ,h["e1 y c deduct any l;g 4t.e teleph"o calls y made on yr home teleph"o = f>m+ busi;s4 ,if y h a sep>ate teleph"o 6use 9 yr busi;s & y use x = busi;s calls only1 y c deduct xs basic mon?ly rate4 #abe ,memb]%ips & subscrip;ns d#bc ,5t] ! am.t ( fees y 9curr$ = memb]%ips 9 f>m+ organiz,ns &= subscrip;ns 6f>m+ public,ns us$ 9 yr f>m+ activities4 ,freim+ busi;s4 ,l9e #iice--,all[.e on eligi# capital prop]ty ,we expla9 h[ 6det]m9e ? all[.e 9 ,*apt] #d4 ,l9e #iicf--,capital co/ all[.e ,5t] ! am.t ( capital co/ all[.e 7,,cca7 y calculate on ! *>ts f.d on pages #b & #c ( ,=m ,t#bjdb4 ,= #abf ,*apt] #b e#bc details on h[ 6-plete ^! *>ts1 see ,*apt] #c4 ,l9e #ihih--,total f>m exp5ses ,5t] ! total ( l9es #igij1 #iice1 & #iicf4 ,5t] ! busi;s "p only4 ,l9e #ihii--,net 9come 7loss7 2f adju/;ts ,5t] ! gross 9come m9us ! total f>m exp5ses4 ,if y >e a "pn] 9 a "pn]%ip1 ? am.t is ! net f>m+ busi;s 9come ( all "pn]s4 ,if y h a loss1 5t] ! am.t 9 brackets4 ,l9e #iida--,op;nal 9v5tory adju/;t 9clud$ 9 #bjjc ,if y want 69clude an 9v5tory am.t 9 9come1 r1d ? sec;n4 ,0mak+ ! op;nal 9v5tory adju/;t 7,,oia71 y c 9clude 9 yr 9come an am.t up 6! fair m>ket #abg ,*apt] #b f#bc value ( yr 9v5tory m9us ! m&atory 9v5tory adju/;t 7,,mia74 ,y c only make ! ,,oia if y use ! ca% me?od4 ,see l9e #iidb on page #bd =! def9i;ns ( 89v5tory0 & 8fair m>ket value40 ,=! ,,oia1 unlike =! ,,mia1 ! 9v5tory does .n h 6be pur*as$ 9v5tory4 ,x is all ! 9v5tory y / h at ! 5d ( yr #bjjc fiscal p]iod4 ,5t] ! am.t ( yr ,,oia on l9e #iida4 ,y m/ deduct ? am.t z an exp5se 9 yr next fiscal p]iod4 -------------------------------------#bd ,l9e #iidb--,m&atory 9v5tory adju/;t 9clud$ 9 #bjjc ,! m&atory 9v5tory adju/;t 7,,mia7 decr1ses yr net loss if y held 9v5tory at ! 5d ( yr fiscal p]iod4 ,r1d ? sec;n1 ev5 if y d n h 6make ! ,,mia4 ,? sec;n w %[ y h[ 6det]m9e ! value (! f>m 9v5tory y b"\ & / h at ! 5d ( yr #bjjc fiscal p]iod4 ,y w ne$ 6"k ? value if y h 6make ! ,,mia ? ye> or 9 ! future4 #abh ,*apt] #b a#bd ,y h 6make ! ,,mia if .all (! foll[+ apply3 --y use ! ca% me?od 6report yr 9come2 --y h a net loss on l9e #ihii ( ,=m ,t#bjdb2 & --y b"\ 9v5tory & / h x at ! 5d ( yr #bjjc fiscal p]iod4 ,? does n ref] only 69v5tory t y pur*as$ 9 #bjjc4 ,x 9cludes 9v5tory t y _h previ\sly pur*as$ & / [n$ at ! 5d ( yr #bjjc fiscal p]iod4 ,yr ,,mia is "o ( ^! two am.ts1 :i*"e is less3 --! net loss 2f adju/;ts on l9e #ihii2 or --! value (! pur*as$ 9v5tory y / h at ! 5d ( yr #bjjc fiscal p]iod4 ,6calculate yr ,,mia1 -plete *>ts #a1 #b1 #c1 & #d on page #ea4 ,once y h -plet$ *>t #d1 5t] ! am.t on l9e #iidb4 ,= m 9=m,n1 see ,9t]pret,n ,bullet9 ,,it-#ebf1 ,f>m+--,ca% ,me?od ,9v5tory ,adju/;ts4 #abi ,*apt] #b b#bd ,9 yr #bjjd fiscal p]iod1 deduct ! ,,mia y a4$ 6yr net loss 9 yr #bjjc fiscal p]iod4 ,note ,if y b"\ a specifi$ animal 7z def9$ 2l7 9 a non->m's l5g? transac;n1 we 3sid] t y b"\ ! animal 9 ! same ye> & at ! same price = : ! sell] b"\ x4 ,a non->m's l5g? transac;n is1 = example1 a transac;n 2t memb]s (a family1 s* z a husb& & wife1 or a p>5t & *4 ,see page #bh =! def9i;n ( non->m's l5g? transac;n4 ,def9i;ns ,6value yr 9v5tory1 y ne$ 6"k ! m1n+ (! foll[+ t]ms4 .,9v5tory is a gr\p ( items t a busi;s holds & 9t5ds 63sume or sell 6xs cu/om]s4 #acj ,*apt] #b c#bd .,f>m .9v5tory is tangi# prop]ty t is3 --held = sale1 s* z h>ve/$ gra92 --us$ 9 ! produc;n ( salea# gds1 s* z se$ & fe$2 or --in ! process ( 2+ produc$1 s* z /&+ crops1 or fe$] live/ock4 ,se$ t y h alr plant$1 & f]tiliz] or *emicals t y h alr appli$1 >e n "p ( yr 9v5tory4 .,pur*as$ .9v5tory is 9v5tory y h b"\ & pd =4 .,specifi$ .animals >e horses4 ,y may al *oose 6designate cattle y regi/]$ "u ! ,animal ,p$igree ,act z specifi$ animals4 ,6make ? *oice1 put a note on yr 9come tax return say+ y want 6designate ! animal ? way4 ,if y 9dicate on yr return t x is a specifi$ animal1 we w 3t9ue 63sid] x z s* until y sell x4 .,ca% .co/ is ! am.t y pd 6pur*ase yr 9v5tory4 .,fair .m>ket .value 7,,fmv7 is g5],y ! hi value y c get = yr prop]ty 9 an op5 & unre/rict$ m>ket 2t an #aca ,*apt] #b d#bd 9=m$ & will+ buy] & an 9=m$ & will+ sell]1 :o >e d1l+ ) ea* o!r at >m's l5g?4 ,we def9e 8non->m's l5g? transac;n0 on page #bh4 ,valu+ yr pur*as$ 9v5tory ,6value yr pur*as$ 9v5tory1 r1d ! text t foll[s &! example ( h[ 6-plete ! ,,mia *>ts4 ,on page #ea ( ? guide1 "! >e blank *>ts = y 6use4 ,keep ^! *>ts z "p ( yr records4 ,except = specifi$ animals1 y h 6value any pur*as$ 9v5tory y b"\ 2f or dur+ yr #bjjc fiscal p]iod at "o (! two foll[+ am.ts1 :i*"e is less3 --! ca% co/2 or --! fair m>ket value4 ,6det]m9e : am.t is less1 sep>ately -p>e ea* item or gr\p ( items 9 ! 9v5tory4 #acb ,*apt] #b e#bd ,value1 at "o (! foll[+ am.ts1 ! specifi$ animals y b"\ .9 yr #bjjc fiscal p]iod & / h at ! 5d ( ? p]iod3 --! ca% co/2 --#gj@3p (! ca% co/2 or --any am.t 2t ^! two am.ts4 ,value1 at "o (! foll[+ am.ts1 ! specifi$ animals y b"\ .2f yr #bjjc fiscal p]iod & / h at ! 5d ( ? p]iod3 --! ca% co/2 --#gj@3p (3 --! value (! specifi$ animals = ,,mia purposes z det]m9$ at ! 5d ( yr #bjjb fiscal p]iod2 .plus --any am.ts y pd 9 yr #bjjc fiscal p]iod t[>d ! pur*ase price2 or --any am.t 2t ^! two am.ts4 -------------------------------------#be ,example ,d\g />t$ 8 f>m+ busi;s 9 #aiid & uses ! ca% me?od 6report 8 9come4 ,8 ye>-5d is ,decemb] #ca4 ,d\g %[s a net loss ( 4#ee1jjj 9 #bjjc on l9e #ihii4 ,d\g has pur*as$ 9v5tory at ! 5d ( 8 #acc ,*apt] #b a#be #bjjc fiscal p]iod4 ,? m1ns he has 6decr1se 8 net loss 0! ,,mia4 ,d\g made a *>t =! ca% co/ ( 8 live/ock t is pur*as$ 9v5tory at ! 5d ( 8 #bjjc fiscal p]iod4 ,live/ock ,transcrib]'s note3 7,! foll[+ 0 set-up 9 ?ree columns4 ,column #a3 ,ye> ( pur*ase ,column #b3 ,co/ ( pur*ase ,column #c3 ,am.t ,d\g pd 0! 5d ( 8 #bjjc fiscal p]iod7 ,ye>3 #bjjc ,co/3 4#cj1jjj ,am.t pd3 4#be1jjj ,ye>3 #bjjb ,co/3 4#bf1jjj ,am.t pd3 4#bf1jjj 99 #acd ,*apt] #b b#be ,ye>3 #bjja ,co/3 4#bb1jjj ,am.t pd3 4#bb1jjj ,ye>3 #bjjj ,co/3 4#bj1jjj ,am.t pd3 4#bj1jjj 99 ,= live/ock b"\ 9 8 #bjjb fiscal p]iod1 ,d\g pd 4#ai1jjj 9 #bjjb1 & 4#g1jjj 9 #bjjc4 ,d\g's o!r 9v5tory is f]tiliz]1 se$1 & fuel4 ,! ca% co/ is ! same z ! fair m>ket value = ? 9v5tory4 ,xs value is z foll[s3 --b"\ 9 8 #bjjc fiscal p]iod3 4#ae1jjj --b"\ 9 8 #bjjb fiscal p]iod3 4#f1jjj --b"\ 9 8 #bjja fiscal p]iod3 4#e1jjj ,at ! 5d ( 8 #bjjc fiscal p]iod1 ,d\g did n h any o!r 9v5tory t he #ace ,*apt] #b c#be b"\ 2f 8 #bjja fiscal p]iod4 ,d\g has regi/]$ 8 live/ock "u ! ,animal ,p$igree ,act4 ,he wants 6designate ^! animals z specifi$ animals4 ,d\g -pletes *>t #a z foll[s3 ,*>t #a--,ca% co/ ( pur*as$ 9v5tory ,d\g 5t]s ! am.t he pd 0! 5d ( 8 #bjjc fiscal p]iod =! specifi$ animals he b"\3 ,fiscal p]iod """"""""""""""""" ,ca% co/ 7,a7 --in 8 #bjjc fiscal p]iod 4#be1jjj 7,b7 --in 8 #bjjb fiscal p]iod 4#bf1jjj 7,c7 --in 8 #bjja fiscal p]iod 4#bb1jjj 7,d7 --in 8 #bjjj fiscal p]iod 4#bj1jjj 7,e7 --2f 8 #bjjj fiscal p]iod "" 4#j.jj #acf ,*apt] #b d#be ,d\g 5t]s ! am.t he pd 0! 5d ( 8 #bjjc fiscal p]iod = all o!r 9v5tory he b"\3 7,f7 --in 8 #bjjc fiscal p]iod 4#ae1jjj 7,g7 --in 8 #bjjb fiscal p]iod 4#f1jjj 7,h7 --in 8 #bjja fiscal p]iod 4#e1jjj 7,i7 --in 8 #bjjj fiscal p]iod "" 4#j.jj 7,j7 --2f 8 #bjjj fiscal p]iod "" 4#j.jj ,d\g n[ "ks ! ca% co/ ( 8 pur*as$ 9v5tory1 9clud+ 8 specifi$ animals4 ,he uses ^! am.ts 6calculate ! value ( 8 pur*as$ 9v5tory at ! 5d ( 8 #bjjc fiscal p]iod4 ,6d ?1 he -pletes *>ts #b1 #c1 & #d z foll[s3 ,*>t #b--,value ( pur*as$ 9v5tory = specifi$ animals ,! small lrs 9 front ( ea* l9e mat* ! p>agraphs at ! 5d ( ? *>t4 ,^! p>agraphs expla9 h[ ,d\g calculates ! numb] on ea* l9e4 #acg ,*apt] #b e#be ,9v5tory b"\ 9 8 #bjjc fiscal p]iod a7 & 7,k7 ,d\g 5t]s an am.t t is n m ?an ! am.t on l9e ;,a1 b n less ?an #gj@3p ( ? am.t4 """ 4#bj1jjj ,9v5tory b"\ 9 8 #bjjb fiscal p]iod b7 & 7,l7 ,d\g 5t]s an am.t t is n m ?an ! am.t on l9e ;,b1 b n less ?an #gj@3p (! total (! value at ! 5d ( 8 #bjjb fiscal p]iod1 plus any am.ts he pd 9 8 #bjjc fiscal p]iod t[>d ! pur*ase price4 """""""""""""" 4#ad1baj ,9v5tory b"\ 9 8 #bjja fiscal p]iod c7 & 7,m7 ,d\g 5t]s an am.t t is n m ?an ! am.t on l9e ;,c1 b n less ?an #gj@3p (! total (! value at ! 5d ( 8 #bjjb fiscal p]iod1 plus any am.ts he pd 9 #ach ,*apt] #b f#be 8 #bjjc fiscal p]iod t[>d ! pur*ase price4 """"""""""""""" 4#g1edf ,9v5tory b"\ 9 8 #bjjj fiscal p]iod d7 & 7,n7 ,d\g 5t]s an am.t t is n m ?an ! am.t on l9e ;,d1 b n less ?an #gj@3p (! total (! value at ! 5d ( 8 #bjjb fiscal p]iod1 plus any am.ts he pd 9 8 #bjjc fiscal p]iod t[>d ! pur*ase price4 """"""""""""""" 4#d1hjb e7 & 7,o7 ,9v5tory b"\ 2f 8 #bjjj fiscal p]iod """"""""""""""" 4#j a7 ,d\g *ose 4#bj1jjj1 : is 2t ! ca% co/ ( 4#be1jjj & 4#ag1ejj 7#gj@3p (! ca% co/74 b7 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjjb fiscal p]iod at #gj@3p (! ca% co/4 ,"!=e1 ! value ( ? 9v5tory at ! 5d ( 8 #bjjb fiscal p]iod 0 4#ac1cjj 74#ai1jjj multipli$ 0#gj@3p74 ,rememb]1 ,d\g pd 4#ai1jjj = ^! #aci ,*apt] #b g#be specifi$ animals 9 #bjjb4 ,he pd 4#g1jjj 9 #bjjc4 ,= 8 #bjjc fiscal p]iod1 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjjb fiscal p]iod at #gj@3p (! total (! value at ! 5d (! #bjjb fiscal p]iod plus any am.ts he pd 9 8 #bjjc fiscal p]iod t[>d ! pur*ase price4 ,"!=e1 ! am.t he 5t]s on l9e ;,l is 4#ad1baj ,7#gj@3p multipli$ by 74#ac1cjj plus 4#g1jjj77'4 ,he cd *oose any am.t 2t ! ca% co/ ( 4#bf1jjj &! l[e/ a3epta# 9v5tory value ( 4#ad1baj4 c7 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjja fiscal p]iod at #gj@3p (! ca% co/4 ,"!=e1 ! value ( ? 9v5tory at ! 5d ( 8 #bjja fiscal p]iod 0 4#ae1djj 74#bb1jjj multipli$ 0#gj@3p74 -------------------------------------#bf ,= 8 #bjjb fiscal p]iod1 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjja fiscal p]iod at #gj@3p (! total (! value at ! 5d ( 8 #bjja fiscal #adj ,*apt] #b a#bf p]iod4 ,"!=e1 ! value ( ? 9v5tory at ! 5d ( 8 #bjjb fiscal p]iod 0 4#aj1ghj 74#ae1djj multipli$ 0#gj@3p74 ,= 8 #bjjc fiscal p]iod1 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjja fiscal p]iod at #gj@3p (! total (! value at ! 5d ( 8 #bjjb fiscal p]iod4 ,"!=e1 ! am.t he 5t]s on l9e ;,m is 4#g1edf 74#aj1ghj multipli$ 0#gj@3p74 ,he cd *oose any am.t 2t ! ca% co/ ( 4#bb1jjj &! l[e/ a3epta# 9v5tory value ( 4#g1edf4 d7 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjjj fiscal p]iod at #gj@3p (! ca% co/4 ,"!=e1 ! value ( ? 9v5tory at ! 5d ( 8 #bjjj fiscal p]iod 0 4#ad1jjj 74#bj1jjj multipli$ 0#gj@3p74 ,= 8 #bjja fiscal p]iod1 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjjj fiscal p]iod at #gj@3p (! total (! value at ! 5d ( 8 #bjjj fiscal p]iod4 ,"!=e1 ! value ( ? 9v5tory at ! #ada ,*apt] #b b#bf 5d ( 8 #bjja fiscal p]iod 0 4#i1hjj 74#ad1jjj multipli$ 0#gj@3p74 ,= 8 #bjjb fiscal p]iod1 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjjj fiscal p]iod at #gj@3p (! total (! value at ! 5d ( 8 #bjja fiscal p]iod4 ,"!=e1 ! value ( ? 9v5tory at ! 5d ( 8 #bjjb fiscal p]iod 0 4#f1hfj 74#i1hjj multipli$ 0#gj@3p74 ,= 8 #bjjc fiscal p]iod1 ,d\g *ose 6value ! 9v5tory he b"\ 9 8 #bjjj fiscal p]iod at #gj@3p (! total (! value at ! 5d ( 8 #bjjb fiscal p]iod4 ,"!=e1 ! am.t he 5t]s on l9e ;,n is 4#d1hjb 74#f1hfj multipli$ 0#gj@3p74 ,he cd *oose any am.t 2t ! ca% co/ ( 4#bj1jjj &! l[e/ a3epta# 9v5tory value ( 4#d1hjb4 e7 ,d\g _h n pur*as$ any specifi$ animals 2f 8 #bjjj fiscal p]iod4 #adb ,*>t #c--,value ( pur*as$ c#bf 9v5tory = all o!r 9v5tory ,9v5tory b"\ 9 8 #bjjc fiscal p]iod3 7,p7 ,d\g 5t]s ! am.t on l9e ;,f or ! fair m>ket value1 :i*"e is less4 """""""""""""""""""" 4#ae1jjj ,9v5tory b"\ 9 8 #bjjb fiscal p]iod 7,q7 ,d\g 5t]s ! am.t on l9e ;,g or ! fair m>ket value1 :i*"e is less4 """"""""""""""""""""" 4#f1jjj ,9v5tory b"\ 9 8 #bjja fiscal p]iod3 7,r7 ,d\g 5t]s ! am.t on l9e ;,h or ! fair m>ket value1 :i*"e is less4 """"""""""""""""""""" 4#e1jjj #adc ,*apt] #b d#bf ,9v5tory b"\ 9 8 #bjjj fiscal p]iod3 7,s7 ,d\g 5t]s ! am.t on l9e ;,i or ! fair m>ket value1 :i*"e is less """"""""""""""""""""""" 4#j.jj ,9v5tory b"\ 2f 8 #bjjj fiscal p]iod3 7,t7 ,d\g 5t]s ! am.t on l9e ;,j or ! fair m>ket value1 :i*"e is less4 """""""""""""""""""""" 4#j.jj ,*>t #d--,calcul,n ( ,,mia 7,u7 ,d\g 5t]s ! am.t ( 8 net loss f .l9e .#ihii ( ,=m ,t#bjdb4 """""""""""""""""""" 4#ee1jjj ,d\g 5t]s ! value ( 8 9v5tory f *>ts #b & #c3 --! am.t on l9e ;,k 4#bj1jjj --! am.t on l9e ;,l 4#ad1baj --! am.t on l9e ;,m 4#g1edf --! am.t on l9e ;,n 4#d1hjb #add ,*apt] #b e#bf --! am.t on l9e ;,o "" 4#j.jj --! am.t on l9e ;,p 4#ae1jjj --! am.t on l9e ;,q 4#f1jjj --! am.t on l9e ;,r 4#e1jjj --! am.t on l9e ;,s "" 4#j.jj --! am.t on l9e ;,t "" 4#j.jj 7,v7 ,total value ( 9v5tory """""""""""" 4#gb1eeh 4#gb1eeh 7,w7 ,,mia--,d\g 5t]s ! am.t on l9e ;,u or l9e ;,v1 :i*"e is less4 """""""""""""""""""" 4#ee1jjj ,! ,,mia t ,d\g uses = 8 #bjjc fiscal p]iod w 2 ! same am.t he deducts f 8 f>m+ 9come :5 he calculates 8 9come = 8 next fiscal p]iod4 ,5t] ! figure f l9e ;,w ( *>t #d on l9e #iidb ( ,=m ,t#bjdb4 ,yr %>e ( l9e ;c ,5t] yr %>e (! total ( l9e #ihii1 l9e #iida1 & l9e #iidb ( ,=m ,t#bjdb4 #ade ,*apt] #b f#bf ,? is ! am.t left af y subtract ! am.ts ! o!r "pn]s >e responsi# = report+4 ,on ! *>t 8,details ( o!r "pn]s0 on page #d ( ,=m ,t#bjdb1 %[ ! full "ns & a4resses (! o!r "pn]s1 z well z a br1kd[n ( _! %>es (! 9come & _! p]c5tages (! "pn]%ip4 ,l9e #iidc--,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss7 ,use ! *>t 8,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss70 on page #d ( ,=m ,t#bjdb4 ,claim extra exp5ses y 9curr$ 6e>n yr %>e (! "pn]%ip 9come1 s* z ! f>m+ busi;s "p ( all[a# motor vehicle exp5ses1 9clud+ ,,cca4 ,claim ^! am.ts only if ! "pn]%ip did n repay y = !m4 ,y c al claim any o!r deducti# am.ts4 ,! limits 4cuss$ 9 ? *apt] al apply 6^! exp5ses4 ,y m/ n h claim$ ^! exp5ses any": else on ,=m ,t#bjdb4 ,y c al use ? *>t 6claim a busi;s 9come reduc;n if y >e a "pn] 9 a #adf ,*apt] #b g#bf "pn]%ip t sold eligi# capital prop]ty & y fil$ a capital ga9s elec;n 9 #aiid relat+ 6yr "pn]%ip 9t]e/4 ,= m 9=m,n1 see ! ,busi;s & ,profes.nal ,9come guide4 -------------------------------------#bg ,l9e #iide--,busi;s-use-(-home exp5ses ,y c deduct exp5ses =! f>m+ busi;s use (a "w space 9 yr home1 z l;g z y meet ."o ( ^! 3di;ns3 --! "w space is yr pr9cipal place ( busi;s2 or --y use ! space only 6e>n yr f>m+ busi;s 9come1 & y use x on a regul> & ongo+ basis 6meet yr cli5ts or cu/om]s4 ,y c deduct "p ( yr ma9t5.e co/s1 s* z h1t+1 home 9sur.e1 electric;y1 & cl1n+ mat]ials4 ,y c al deduct "p ( yr prop]ty taxes1 mortgage 9t]e/1 & capital co/ all[.e4 ,6calculate ! "p y c deduct1 use #adg ,*apt] #b a#bg a r1sona# basis1 s* z ! >ea (! "w space divid$ 0! total >ea4 ,! capital ga9 & recapture rules w apply if y deduct capital co/ all[.e on ! busi;s-use "p ( yr home & y lat] sell yr home4 ,= m 9=m,n ab ^! rules1 see *apt]s #c & #f4 ,if y r5t yr home1 y c deduct ! "p (! r5t & any exp5ses y 9cur t relate 6! "w space4 ,! am.t y c deduct = busi;s-use-(-home exp5ses _c 2 m ?an yr net 9come f ! f>m+ busi;s 2f y deduct ^! exp5ses4 ,9 o!r ^ws1 y _c use ^! exp5ses 69cr1se or cr1te a busi;s loss4 ,y c deduct :i*"e (! foll[+ am.ts is .less3 --any am.t y c>ry =w>d f yr #bjjb fiscal p]iod1 plus ! busi;s-use-(- home exp5ses y 9cur 9 yr #bjjc fiscal p]iod2 or --! 9come am.t on l9e ;f ( ,=m ,t#bjdb4 #adh ,*apt] #b b#bg ,9 a future ye>1 y c use any exp5se y cd n deduct 9 yr #bjjc fiscal p]iod1 z l;g z y meet "o (! previ\s two 3di;ns4 ,! same rules apply4 ,y c use ! *>t 8,calcul,n ( busi;s- use-(-home exp5ses0 on page #d ( ,=m ,t#bjdb 6calculate yr all[a# claim = busi;s-use-(-home exp5ses4 ,note ,if y >e claim+ ,,cca =! busi;s use (a "w space 9 yr home1 y h 6deduct x on ! *>t 8,calcul,n ( busi;s-use-(-home exp5ses0 on page #d ( ,=m ,t#bjdb4 ,subtract ! ,,cca calculat$ = busi;s- use-(-home exp5ses f ! total ,,cca claim$ 9 ,>ea ;,e 2f 5t]+ yr claim on l9e #iicf1 8,capital co/ all[.e0 on page #b ( ,=m ,t#bjdb4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it-#ead1 ,"w ,space 9 ,home ,exp5ses4 #adi ,l9e #iidf--,yr net 9come c#bg 7loss7 ,5t] yr net f>m+ 9come or loss on ? l9e1 & al on l9e #ada ( yr 9come tax return4 ,if y h a loss1 5t] ! am.t 9 brackets4 ,= m 9=m,n ab losses1 see ,*apt] #e4 ,note ,y may h 6adju/ ! figure f l9e #iidf 2f 5t]+ x on yr 9come tax return4 ,y may h fil$ ,=m ,t#aaci1 ,reconcili,n ( #bjjb ,busi;s ,9come = ,tax ,purposes1 ) yr #bjjb tax return4 ,if s1 y w probably h 6-plete ! same =m = #bjjc4 ,6f9d \ if y h 6file ,=m ,t#aaci1 & calculate ! am.t ( f>m+ 9come 6report on yr #bjjc 9come tax return1 see ! ,reconcili,n ( ,busi;s ,9come = ,tax ,purposes guide4 ,! guide 9cludes ,=m ,t#aaci4 #aej ,details ( equ;y 7*>t on d#bg page #d ( ,=m ,t#bjdb7 ,l9e #iica--,total busi;s liabilities ,a liabil;y is a debt or an oblig,n (a busi;s4 ,total busi;s liabilities >e ! total ( all am.ts yr f>m+ busi;s [es at ! 5d ( xs fiscal p]iod4 ,? 9cludes a3.ts paya#1 notes paya#1 taxes paya#1 unpd sal>ies1 wages & b5efits1 9t]e/ paya#1 def]r$ or une>n$ rev5ues1 loans paya#1 mortgages paya#1 or any o!r \t/&+ bal.e4 ,l9e #iicb--,draw+s 9 #bjjc ,a draw+ is any )drawal ( ca% or o!r assets & s]vices (a busi;s 0! proprietor or "pn]s4 ,? 9cludes transac;ns 0! proprietor or "pn]s 7or family memb]s71 s* z )draw+ ca% = non-busi;s use1 & us+ busi;s assets & s]vices = p]sonal use4 #aea ,l9e #iicc--,capital e#bg 3tribu;ns 9 #bjjc ,a capital 3tribu;n is an a4i;n ( ca% or o!r assets t y made 6! f>m+ busi;s dur+ xs fiscal p]iod4 ,? 9cludes a4+ p]sonal funds 6! busi;s a3.t1 pay+ busi;s debts ) p]sonal funds1 & transf]r+ p]sonal assets 6! f>m+ busi;s4 ,details ( o!r "pn]s 7*>t on page #d ( ,=m ,t#bjdb7 ,if y >e a "pn] 9 a "pn]%ip t does .n h 6file a "pn]%ip 9=m,n return 7see ,*apt] #a = ^! require;ts71 -plete ! *>t1 8,details ( o!r "pn]s10 on ,=m ,t#bjdb4 ,if y >e a "pn] 9 a "pn]%ip t .does h 6file a "pn]%ip 9=m,n return1 y d n ne$ 6-plete ! *>t4 #aeb ,*apt] #c--,capital ,co/ f#bg ,all[.e 7,,cca7 ,:at is ,,cca8 ,y mim+ busi;s4 ,y _c deduct ! co/ (! prop]ty :5 y calculate yr net f>m+ 9come =! ye>4 ,h["e1 2c ^! prop]ties may we> \ or 2come \tdat$ ov] "t1 y c deduct _! co/ ov] a p]iod ( s"eal ye>s4 ,! deduc;n = ? is call$ capital co/ all[.e 7,,cca74 -------------------------------------#bh ,def9i;ns ,6calculate yr ,,cca claim1 y w ne$ 6"k ! m1n+ (! foll[+ t]ms4 ,availa# = use ,y c claim ,,cca on a deprecia# prop]ty only :5 x 2comes availa# = use4 #aec ,*apt] #c a#bh ..,prop]ty1 o!r ?an a .build+1 g5],y 2comes availa# = use on ! e>lie/ (! foll[+ dates3 --! date y f/ use ! prop]ty 6e>n 9come2 --! second tax ye> af ! ye> y acquire ! prop]ty2 --! "t j 2f y 4pose (! prop]ty2 or --! date ! prop]ty is deliv]$ or made availa# 6y & is capa# ( produc+ a salea# product or s]vice1 or ( p]=m+ ! func;n = : y acquir$ x4 ,example ,if y buy a tractor &! sell] deliv]s x 6y 9 #bjjc1 b x is n 9 "w+ ord] until #bjjd1 y _c claim ,,cca on x until #bjjd4 ,h["e1 if y buy a tractor &! sell] deliv]s x 6y 9 "w+ ord] 9 #bjjc1 b y did n use x until #bjjd1 y c / claim ,,cca 9 #bjjc 2c x 0 availa# = use4 #aed ,*apt] #c b#bh ..,a build+1 or "p (a .build+1 usu,y 2comes availa# = use on ! e>lie/ (! foll[+ dates3 --! date y />t us+ #ij@3p or m (! build+ =! purpose y acquir$ x2 --! date ! 3/ruc;n is -plet$2 --! second tax ye> af ! ye> y acquire ! build+2 or --! "t j 2f y 4pose (! build+4 ,we 3sid] any ..3/ruc;n1 r5ov,n1 or .alt],n 6a "picul> build+ 6be a sep>ate build+ =! purposes ( apply+ ! availa#-=- use rules4 ,capital co/ ,? is ! am.t on : y f/ claim ,,cca4 ,! capital co/ (a deprecia# prop]ty is g5],y ! total (3 --! pur*ase price n 9clud+ ! co/ ( l&1 : is n deprecia# 7see 8,l&0 on page #cj72 --! "p ( yr legal1 a3.t+1 5g9e]+1 9/all,n1 & o!r fees t #aee ,*apt] #c c#bh relates 6! pur*ase or 3/ruc;n (! deprecia# prop]ty 7n 9clud+ ! "p t applies 6l&72 --! co/ ( any a4i;ns or improve;ts y made 6! deprecia# prop]ty af y acquir$ x1 provid$ y h n claim$ ^! co/s z a curr5t exp5se2 & --s(t co/s 7s* z 9t]e/1 legal & a3.t+ fees1 & prop]ty taxes7 relat$ 6! p]iod y >e 3/ruct+1 r5ovat+1 or alt]+ ! build+ provid$ y h n claim$ ^! co/s z a curr5t exp5se4 ,deprecia# prop]ty ,? is any prop]ty on : y c claim ,,cca4 ,y usu,y gr\p deprecia# prop]ties 96classes4 ,= example1 di7]s1 drills1 & tools t co/ 4#bjj or m 2l;g 6class #h4 ,y h 6base yr ,,cca claim on a rate assign$ 6ea* class ( prop]ty4 ,see 8,classes ( deprecia# prop]ty0 on page #cb =! mo/ -mon classes ( #aef ,*apt] #c d#bh deprecia# prop]ty y cd use 9 yr f>m+ op],n1 & 8,capital ,co/ ,all[.e 7,,cca7 ,rates0 on page #ej4 ,fair m>ket value 7,,fmv7 ,fair m>ket value is g5],y ! hi value t y c get = yr f>m prop]ty 9 an op5 & unre/rict$ m>ket 2t an 9=m$ & will+ buy] & an 9=m$ & will+ sell] :o >e d1l+ at >m's l5g? ) ea* o!r4 ,non->m's l5g? transac;n ,a non->m's l5g? transac;n 9cludes a transac;n 2t "pies :o >e relat$1 s* z memb]s (a family4 ,an example (a non- >m's l5g? transac;n wd 2 ! sale ( prop]ty 2t a husb& & wife1 or a p>5t & *4 ,= m details on non->m's l5g? transac;ns1 see ,9t]pret,n ,bullet9 ,,it-#dai1 ,m1n+ ( ,>m's ,l5g?4 #aeg ,proce$s ( 4posi;n e#bh ,yr proce$s ( 4posi;n >e usu,y ! am.t y rcv1 or t we 3sid] y 6h rcvd1 :5 y 4pose ( yr deprecia# prop]ty4 ,? cd 9clude -p5s,n y rcv = deprecia# prop]ty t "s"o de/roys1 expropriates1 /1ls1 or damages4 ,= m details ab proce$s ( 4posi;n1 see ,9t]pret,n ,bullet9 ,,it- #bbj1 ,capital ,co/ ,all[.e--,proce$s ( ,4posi;n ( ,deprecia# ,prop]ty1 & xs ,special ,rel1se1 & ,9t]pret,n ,bullet9 ,,it-#bhe1 ,capital ,co/ ,all[.e--,g5]al ,-;ts4 ,undepreciat$ capital co/ 7,,ucc7 ,! ,,ucc is g5],y ! am.t left af y deduct ,,cca f ! capital co/ (a deprecia# prop]ty4 ,! ,,cca y claim ea* ye> reduces ! ,,ucc (! prop]ty ea* ye>4 #aeh ,h[ m* ,,cca c y claim8 f#bh ,base yr ,,cca claim on yr fiscal p]iod1 & n ! cal5d> ye>4 ,! am.t ( ,,cca y c claim dep5ds on ! type ( prop]ty y [n1 &! date y acquir$ x4 ,y gr\p ! deprecia# prop]ty y [n 96classes4 ,a di6]5t rate ( ,,cca applies 6ea* class4 ,we expla9 ! mo/ -mon classes ( deprecia# prop]ty 9 8,classes ( deprecia# prop]ty0 on page #cb4 ,we li/ mo/ (! classes ( deprecia# prop]ty &! rates = ea* class 9 8,capital ,co/ ,all[.e 7,,cca7 ,rates0 on page #ej4 -------------------------------------#bi ,guidel9es = claim+ ,,cca --,in mo/ cases1 ,,cca is calculat$ us+ ! decl9+ bal.e me?od4 ,? m1ns t y claim ,,cca on ! capital co/ (! prop]ty m9us ! ,,cca1 if any1 y claim$ 9 previ\s ye>s4 ,! rema9+ bal.e decl9es ov] ! ye>s z y claim ,,cca4 #aei ,*apt] #c a#bi --,y d n h 6claim ! maximum am.t ( ,,cca 9 any giv5 ye>4 ,y c claim any am.t y l1 f z]o 6! maximum all[$ =! ye>4 ,= example1 if y d n h 6pay 9come tax =! ye>1 y may n want 6claim ,,cca4 ,claim+ ,,cca reduces ! bal.e (! class 0! am.t ( ,,cca claim$4 ,z a result1 ! availa# ,,cca = future ye>s w 2 reduc$4 --,in ! ye> y acquire a deprecia# prop]ty1 y c usu,y claim ,,cca only on "o-half ( yr net a4i;ns 6a class4 ,we expla9 ? #ej@3p rule 9 8,column #f--,adju/;t = curr5t-ye> a4i;ns0 on page #ca4 ,! availa#-=-use rules may al a6ect ! am.t ( ,,cca y c claim4 ,see ! def9i;n ( 8availa# = use0 on page #bh4 --,y _c claim ,,cca on mo/ l& or on liv+ ?+s s* z trees1 %rubs1 or animals4 ,h["e1 y c claim ,,cca on timb] limits1 cutt+ "rs1 & wood assets4 ,= m details1 see ,9t]pret,n ,bullet9s ,,it-#dha1 ,timb] #afj ,*apt] #c b#bi ,res\rce ,prop]ty & ,timb] ,limits1 & ,,it-#eja1 ,capital ,co/ ,all[.e-- ,lo7+ ,assets1 & xs ,special ,rel1se4 --,if y rcv 9come f a qu>ry1 s&1 or gravel pit1 or a woodlot1 y c claim a type ( all[.e "kn z a deple;n all[.e4 ,= m details1 see ,9t]pret,n ,bullet9s ,,it-#cgc1 ,f>m ,woodlots & ,tree ,f>ms1 & xs ,special ,rel1se1 & ,,it-#dib1 ,capital ,co/ ,all[.e--,9du/rial ,m9]al ,m9es4 --,if y claim ,,cca & y lat] 4pose (! prop]ty1 y may h 6add an am.t 6yr 9come z a recapture ( ,,cca4 ,alt]natively1 y may 2 a# 6deduct an a4i;nal am.t f yr 9come z a t]m9al loss4 ,= m 9=m,n1 see 8,column #e-- ,,ucc af a4i;ns & 4posi;ns0 on page #ca4 --,if y us$ deprecia# prop]ty 9 #bjjc t y us$ 9 yr f>m+ busi;s 2f ,janu>y #afa ,*apt] #c c#bi #a1 #aigb1 -plete 8,>ea ;,e--,"p ,,xvii prop]ties0 on ,=m ,t#bjdb4 --,if y >e a "pn] 9 a "pn]%ip t provides y )a ,t#ejac slip1 ,/ate;t ( ,"pn]%ip ,9come1 y _c p]son,y claim ,,cca = prop]ty [n$ 0! "pn]%ip4 ,! ,t#ejac slip y rcv w h alr allocat$ 6y a %>e (! "pn]%ip's ,,cca on ! deprecia# f>m prop]ty4 ,y 7 ask+8 ,"q ,if ,i />t a f>m+ busi;s on ,june #a1 #bjjc1 h[ d ,i det]m9e my ,,cca claim 6,decemb] #ca1 #bjjc8 ,answ] ,s9ce ! p]iod is %ort] ?an #cfe "ds1 y h 6prorate yr ,,cca claim4 ,calculate yr ,,cca us+ ! rules we 4cuss 9 ? *apt]4 ,h["e1 base yr ,,cca claim on ! numb] ( "ds 9 yr fiscal p]iod -p>$ 6#cfe "ds4 #afb ,*apt] #c d#bi ,9 yr case1 yr fiscal p]iod is #bad "ds4 ,suppose y calculate yr ,,cca 6be 4#c1ejj4 ,! am.t ( ,,cca y c claim is 4#b1jeb 74#c1ejj multipli$ 0#bad divid$ 0#cfe74 ,h[ d y make yr claim8 ,use ,>ea ;,e on page #c ( ,=m ,t#bjdb 6calculate yr ,,cca deduc;n = yr #bjjc fiscal p]iod4 ,if y acquir$ or 4pos$ ( build+s or equip;t dur+ ! ye>1 y w ne$ 6-plete >1s ;,a1 ;,b1 ;,c1 or ;,d 7:i*"e applies7 2f y -plete ,>ea ;,e4 ,ev5 if y >e n claim+ a deduc;n = ,,cca = yr #bjjc fiscal p]iod1 y %d -plete ^! >1s 6%[ any a4i;ns or 4posals dur+ ! ye>4 ,!y >e locat$ on pages #b & #c ( ,=m ,t#bjdb4 ,= details on h[ 6-plete all ^! >1s1 see ! foll[+ sec;ns4 #afc ,column #a--,class numb] e#bi ,if ? is ! f/ ye> y >e claim+ ,,cca1 r1d 8,classes ( deprecia# prop]ty0 on page #cb1 =! mo/ -mon classes ( deprecia# prop]ties y c use 9 yr f>m+ op],n1 & 8,capital ,co/ ,all[.e 7,,cca7 ,rates0 on page #ej4 ,if y claim$ ,,cca la/ ye>1 y c get ! class numb]s f la/ ye>'s ,=m ,t#bjdb4 ,g5],y1 if y [n s"eal prop]ties 9 ! same class1 y -b9e ! capital co/ ( all ^! prop]ties 9 "o class4 ,y !n 5t] ! total 9 ,>ea ;,e4 ,column #b--,undepreciat$ capital co/ 7,,ucc7 at ! />t (! ye> ,if ? is ! f/ ye> y >e claim+ ,,cca1 skip ? column4 ,o!rwise1 5t] ! ,,ucc = ea* class at ! 5d ( la/ ye> 9 ? column4 ,if y -plet$ ,>ea ;,e on ,=m ,t#bjdb la/ ye>1 y w f9d ^! am.ts 9 column #aj4 #afd ,*apt] #c f#bi ,y may h rcvd a ,,gst/,,hst 9put tax cr$it 9 #bjjb =a pass5g] vehicle y us$ less ?an #ij@3p (! "t 9 yr busi;s4 ,9 ? case1 subtract ! am.t (! cr$it f ! 2g9n+ ,,ucc = yr #bjjc fiscal p]iod4 ,= m 9=m,n1 see 8,grants1 subsidies1 & rebates0 on page #ce4 ,subtract any 9ve/;t tax cr$it y claim$ or 7 refund$ 9 #bjjb f yr ,,ucc at ! />t ( yr #bjjc fiscal p]iod4 ,al1 subtract any #bjjb 9ve/;t tax cr$it y c>ri$ back 6a ye> 2f #bjjb4 ,note ,9 #bjjc1 y may 2 claim+1 c>ry+ back1 or gett+ a refund ( an 9ve/;t tax cr$it4 ,if y / h deprecia# prop]ty 9 ! class1 y h 6adju/ ! ,,ucc (! class 6: ! prop]ty 2l;gs 9 #bjjd4 ,6d ?1 subtract ! am.t (! cr$it f ! ,,ucc at ! 2g9n+ ( #bjjd4 ,:5 "! is no prop]ty left 9 ! class1 report ! am.t (! 9ve/;t tax cr$it z 9come 9 #bjjd4 #afe ,column #c--,co/ ( a4i;ns 9 #cj ! ye> ,if y acquire or make improve;ts 6deprecia# prop]ty 9 ! ye>1 we g5],y 3sid] ! improve;ts 6be a4i;ns 6! class 9 : ! prop]ty 2l;gs4 ,see 8,class #c 7#e@3p70 on page #cb = an excep;n 6? rule4 ,5t] ! details ( yr #bjjc a4i;ns on ,=m ,t#bjdb z expla9$ 2l3 --complete ,>ea ;,a & ,>ea ;,b 7:i*"e applies7 on ,=m ,t#bjdb2 & --= ea* class1 5t] 9 column #c ( ,>ea ;,e ! correspond+ am.t f column #e ( ,>ea ;,a & ,>ea ;,b4 ,:5 -plet+ ,>ea ;,a & ,>ea ;,b 7see 2l7 9 ! column call$ 8,p]sonal "p10 5t] ! "p (! prop]ty t y use p]son,y1 sep>ate f ! "p y use = busi;s4 ,= example1 if y use #be@3p (! build+ 9 : y live = yr f>m+ busi;s1 yr p]sonal "p is ! o!r #ge@3p4 ,d n 9clude ! value ( yr [n lab\r 9 ! co/ (a prop]ty y build or improve4 ,9clude ! co/ ( survey+ or valu+ #aff ,*apt] #c a#cj a prop]ty y acquire 9 ! capital co/ (! prop]ty4 ,rememb] t a prop]ty usu,y has 6be availa# = use 2f y c claim ,,cca4 ,see ! def9i;n ( 8availa# = use0 on page #bh4 ,note ,if y rcvd 9sur.e proce$s 6reimburse y =! .loss or .de/ruc;n ( deprecia# prop]ty1 5t] ! am.t y sp5t 6.replace ! prop]ty 9 column #c ( ,>ea ;,e1 & al 9 ,>ea ;,a or ;,b1 :i*"e applies4 ,9clude ! am.t ( 9sur.e proce$s z proce$s ( 4posi;n 9 column #d ( ,>ea ;,e & al 9 column #c ( ,>ea ;,c or ;,d1 :i*"e applies4 ,= m 9=m,n1 see 8,l9e #ifjd--,9sur.e proce$s0 on page #aa4 ,if y replac$ a lo/ or de/roy$ prop]ty )9 a ye> (! loss1 special rules = replace;t prop]ty may apply4 ,see ,9t]pret,n ,bullet9 ,,it-#bei1 ,ex*anges ( ,prop]ty1 & #afg ,*apt] #c b#cj ,9t]pret,n ,bullet9 ,,it-#dia1 ,=m] ,busi;s ,prop]ty1 & xs ,special ,rel1se4 ,y %d al see 8,special situ,ns0 on page #cd 6see if any (! situ,ns apply 6y4 ,>ea ;,a--,details ( equip;t a4i;ns 9 ! ye> ,li/ ! details ( all equip;t1 ma*9]y1 or motor vehicles y acquir$ or improv$ 9 #bjjc4 ,gr\p ! equip;t 96! applica# classes1 & put ea* class on a sep>ate l9e4 ..,5t] on l9e .#iibe ! total busi;s "p (! co/ (! equip;t4 ,>ea ;,b--,details ( build+ a4i;ns 9 ! ye> ,li/ ! details ( all build+s y acquir$ or improv$ 9 #bjjc4 ,gr\p ! build+s 96! #afh ,*apt] #c c#cj applica# classes1 & put ea* class on a sep>ate l9e4 ..,5t] on l9e .#iibg ! total busi;s "p (! co/ (! build+s4 ,! co/ 9cludes ! actual pur*ase price (! build+1 plus any relat$ exp5ses t y %d add 6! capital co/ (! build+1 s* z legal fees1 l& transf] taxes1 & mortgage fees4 ,l& ,l& is n deprecia# prop]ty4 ,"!=e1 y _c claim ,,cca on xs co/4 ,if y acquire a f>m prop]ty t 9cludes bo? l& &a build+1 5t] 9 column #c ( ,>ea ;,b only ! co/ (! build+4 ,6"w \ ! build+'s capital co/1 y h 6split any fees t relate 6! pur*ase (! prop]ty 2t ! l& &! build+4 ,relat$ fees may 9clude legal & a3.t+ fees4 ,calculate ! "p (! relat$ fees y c 9clude 9 ! capital co/ (! build+ z foll[s3 #afi ,*apt] #c d#cj build+ value divd$ 0total pur*ase price multipli$ 0legal1 a3.t+1 or o!r fees equals ! "p (! fees y c 9clude 9 ! build+'s co/ ,y d n h 6split a fee if x relates specific,y 6! l& or ! build+4 ,9 ? case1 y wd add ! am.t (! fee 6! co/ 6: x relates1 ei ! l& or ! build+4 ,>ea ;,f--,details ( l& a4i;ns & 4posi;ns 9 ! ye> ..,5t] on l9e .#iibc ! total co/ ( acquir+ l& 9 #bjjc4 ,! co/ 9cludes ! actual pur*ase price (! l&1 plus any relat$ exp5ses t y %d add 6! capital co/ (! l&1 s* z legal fees1 l& transf] taxes1 & mortgage fees4 ,y _c claim ,,cca on l&4 ,d .n 5t] ? am.t 9 column #c ( ,>ea ;,e4 #agj ,>ea ;,g--,details ( quota e#cj a4i;ns & 4posi;ns 9 ! ye> ..,5t] on l9e .#iibi ! total co/ ( acquir+ quotas 9 #bjjc4 ,column #d--,proce$s ( 4posi;n 9 ! ye> ,if y 4pos$ (a deprecia# prop]ty dur+ yr #bjjc fiscal p]iod3 --complete ,>ea ;,c & ,>ea ;,d on ,=m ,t#bjdb1 if !y apply2 & --= ea* class1 5t] 9 column #d ( ,>ea ;,e ! correspond+ am.t f column #e ( ,>ea ;,c & ,>ea ;,d4 ,:5 -plet+ ,>ea ;,c & ,>ea ;,d1 5t] 9 column #c "o (! foll[+ am.ts1 :i*"e is less3 --yr proce$s ( 4posi;n 7see ! def9i;n on page #bh7 m9us any relat$ exp5ses2 or --! capital co/ ( yr deprecia# prop]ty4 #aga ,*apt] #c f#cj ,note ,if y rcvd 9sur.e proce$s 6reimburse y =! .loss or .de/ruc;n ( deprecia# prop]ty1 5t] ! am.t y rcvd z proce$s ( 4posi;n 9 column #d ( ,>ea ;,e & al 9 column #c ( ,>ea ;,c or ;,d1 :i*"e applies4 ,5t] ! am.t y sp5t 6.replace ! prop]ty 9 column #c ( ,>ea ;,e1 & al 9 ,>ea ;,a or ;,b1 :i*"e applies4 ,= m 9=m,n1 see 8,l9e #ifjd--,9sur.e proce$s0 on page #aa4 -------------------------------------#ca ,if y replac$ a lo/ or de/roy$ prop]ty )9 a ye> (! loss1 special rules = replace;t prop]ty may apply4 ,see ,9t]pret,n ,bullet9 ,,it-#bei1 ,ex*anges ( ,prop]ty1 & ,9t]pret,n ,bullet9 ,,it- #dia1 ,=m] ,busi;s ,prop]ty1 & xs ,special ,rel1se4 ,special rules may apply if y 4pose (a build+ = less ?an bo? xs undepreciat$ capital co/ & yr capital co/4 ,if ? is ! #agb ,*apt] #c a#ca case1 see 8,special rules = 4pos+ (a build+ 9 ! ye>0 on page #cf = details4 ,if y 4pose (a deprecia# prop]ty = m ?an xs co/1 y w h a capital ga94 ,= details on capital ga9s1 see ,*apt] #f4 ,y _c h a capital loss :5 y sell deprecia# prop]ty4 ,h["e1 y may h a t]m9al loss4 ,see 8,column #e--,,ucc af a4i;ns & 4posi;ns0 on ? page = an explan,n ( t]m9al losses4 ,if all (! proce$s ( 4posi;n = equip;t1 ma*9]y1 motor vehicles1 or =a build+ >e n rcvd 9 ! ye> y 4pose ( s* prop]ty1 see ,9t]pret,n ,bullet9 ,,it- #bcf1 ,res]ves--,4posi;n ( ,capital ,prop]ty4 ,if y ne$ m details1 see ,9t]pret,n ,bullet9 ,,it-#bbj1 ,capital ,co/ ,all[.e--,proce$s ( ,4posi;n ( ,deprecia# ,prop]ty1 & xs ,special ,rel1se4 #agc ,*apt] #c b#ca ,note ,:5 -plet+ ,>ea ;,c & ,>ea ;,d 7see 2l71 9 ! column call$ 8,p]sonal "p10 5t] ! "p (! prop]ty t y use p]son,y1 sep>ately f ! "p y use = busi;s4 ,= example1 if y use #be@3p (! build+ 9 : y live = yr f>m+ busi;s1 yr p]sonal "p is ! o!r #ge@3p4 ,>ea ;,c--,details ( equip;t 4posi;ns 9 ! ye> ,9 ? >ea1 li/ ! details ( all equip;t1 ma*9]y1 or motor vehicles y 4pos$ ( 9 #bjjc4 ,gr\p ! prop]ties 96! applica# classes1 & put ea* class on a sep>ate l9e4 ..,5t] on l9e .#iibf ! total busi;s "p (! proce$s ( 4posi;n (! equip;t1 ma*9]y1 & motor vehicles4 #agd ,>ea ;,d--,details ( c#ca build+ 4posi;ns 9 ! ye> ,9 ? >ea1 li/ ! details ( all build+s y 4pos$ ( 9 #bjjc4 ,gr\p ! build+s 96! applica# classes1 & put ea* class on a sep>ate l9e4 ..,5t] on l9e .#iibh ! total busi;s "p (! proce$s ( 4posi;n (! build+s4 ,>ea ;,f--,details ( l& a4i;ns & 4posi;ns 9 ! ye> ..,5t] on l9e .#iibd ! total ( all am.ts y rcvd or w rcv = 4pos+ ( l& 9 ! ye>4 ,>ea ;,g--,details ( quota a4i;ns & 4posi;ns 9 ! ye> ..,5t] on l9e .#iicj ! total ( all am.ts y rcvd or w rcv = 4pos+ ( quotas 9 ! ye>4 #age ,column #e--,,ucc af d#ca a4i;ns & 4posi;ns ,y _c claim ,,cca :5 ! am.t 9 column #e is3 --.negative 7see 8,recapture ( ,,cca0 2l72 or --.positive1 & y d n h any prop]ty left 9 t class at ! 5d ( yr #bjjc fiscal p]iod 7see 8,t]m9al loss0 2l74 ,9 ei case1 5t] 8#j0 9 column #aj4 ,recapture ( ,,cca ,if ! am.t 9 column #e is negative1 y h a recapture ( ,,cca4 ,9clude yr recapture on l9e #ifjj1 8,o!r 9come40 ,a recapture ( ,,cca c o3ur1 = example1 :5 y get a gov]n;t grant or claim an 9ve/;t tax cr$it4 ,x c al happ5 if ! proce$s f ! sale ( deprecia# prop]ty >e m ?an ! total (3 --! ,,ucc (! class at ! 2g9n+ (! ye>2 & #agf ,*apt] #c e#ca --! capital co/ ( any new a4i;ns dur+ ! ye>4 ,9 "s cases1 y may 2 a# 6po/p"o a recapture ( ,,cca4 ,= example1 y may sell a prop]ty & replace x )a simil> "o1 "s"o may expropriate yr prop]ty1 or y may transf] prop]ty 6a corpor,n1 a "pn]%ip1 or yr *4 ,t]m9al loss ,if ! am.t 9 column #e is positive & y no l;g] [n any prop]ty 9 t class1 y may h a t]m9al loss4 ,m precisely1 y may h a t]m9al loss :51 at ! 5d ( yr fiscal p]iod1 y h no m prop]ty 9 ! class b y / h an am.t t y h n deduct$ z ,,cca4 ,y c usu,y subtract ? t]m9al loss f yr gross f>m+ 9come 9 ! fiscal p]iod y 4pos$ (! deprecia# prop]ty4 ,9clude yr t]m9al loss on l9e #igij1 8,o!r exp5ses40 ,= m 9=m,n on recapture ( ,,cca & t]m9al loss1 see ,9t]pret,n ,bullet9 #agg ,*apt] #c f#ca ,,it-#dgh1 ,capital ,co/ ,all[.e-- ,recapture & ,t]m9al ,loss4 ,note ,! rules = recapture ( ,,cca & t]m9al loss d n apply 6pass5g] vehicles 9 class #aj.a4 ,h["e1 see ! -;ts 9 8,column #g--,base am.t = ,,cca10 on page #cb1 6calculate yr ,,cca claim4 ,column #f--,adju/;t = curr5t- ye> a4i;ns ,9 ! ye> y acquire or make a4i;ns 6a deprecia# prop]ty1 y c usu,y claim ,,cca on only "o half ( yr net a4i;ns 7! am.t 9 column #c m9us ! am.t 9 column #d74 ,we call ? ! .#ej@3p .rule4 ,calculate yr ,,cca claim only on ! net adju/$ am.t4 ,d n reduce ! co/ (! a4i;ns 9 column #c1 or ! ,,cca rate 9 column #h4 ,= example1 if y acquir$ a prop]ty 9 #bjjc = 4#cj1jjj1 y wd base yr #agh ,*apt] #c g#ca ,,cca claim on 4#ae1jjj 74#cj1jjj multipli$ 0#ej@3p74 -------------------------------------#cb ,if y acquir$ & 4pos$ ( deprecia# prop]ty (! same class 9 #bjjc1 ! calcul,n 9 column #f re/ricts yr ,,cca claim4 ,calculate ! ,,cca y c claim z foll[s3 --,det]m9e : (! foll[+ am.ts is less3 --! proce$s ( 4posi;n ( yr prop]ty1 .m9us any relat$ co/s or exp5ses2 or --! capital co/4 --,subtract ! abv am.t f ! capital co/ ( yr a4i;n4 --,in column #f1 5t] #ej@3p (! result4 ,if ! result is negative1 5t] 8#j40 ,9 "s cases1 y d n make an adju/;t 9 column #f4 ,= example1 9 a non->m's l5g? transac;n1 y may buy deprecia# prop]ty t ! sell] 3t9u\sly [n$ f ! "d t is at l1/ #cfd "ds 2f ! 5d ( yr #bjjc fiscal p]iod 6! "d ! prop]ty 0 pur*as$4 ,h["e1 #agi ,*apt] #c a#cb if y transf] p]sonal prop]ty1 s* z a c> or a p]sonal -put] 96yr busi;s1 ! #ej@3p rule applies 6! "picul> prop]ty transf]r$4 ,al1 "s prop]ties >e n subject 6! #ej@3p rule4 ,"s examples >e prop]ties 9 classes #ac1 #ad1 #bc1 #bd1 #bg1 #bi1 & #cd1 z well z "s ( ^? 9 class #ab1 s* z small tools t co/ less ?an 4#bjj4 ,! #ej@3p rule does n apply :5 ! availa#-=-use rule 74cuss$ on page #bh7 d5ies a ,,cca claim until ! second tax ye> af y acquir$ a prop]ty4 ,if y ne$ m details on ! #ej@3p rule1 see ,9t]pret,n ,bullet9 ,,it-#bhe1 ,capital ,co/ ,all[.e--,g5]al ,-;ts4 ,column #g--,base am.t = ,,cca ,base yr ,,cca claim on ? am.t4 ,=a class #aj.a vehicle y 4pos$ ( 9 yr #bjjc fiscal p]iod1 y may 2 a# 6claim #ej@3p (! ,,cca t wd 2 all[$ if y / [n$ ! vehicle at ! 5d ( yr #bjjc #ahj ,*apt] #c b#cb fiscal p]iod4 ,? is "kn z ! ..half-ye> rule on .sale4 ,y c use ! half-ye> rule on sale if1 at ! 5d ( yr #bjjb fiscal p]iod1 y [n$ ! class #aj.a vehicle y 4pos$ ( 9 #bjjc4 ,if ? applies 6y1 9 column #g 5t] #ej@3p (! am.t 9 column #b4 ,column #h--,rate 7@3p7 ,5t] ! rate 9 ? column = ea* class ( prop]ty 9 ,>ea ;,e ( ,=m ,t#bjdb4 ,=a li/ ( rates1 see 8,capital ,co/ ,all[.e 7,,cca7 ,rates0 on page #ej4 ,= m detail$ 9=m,n on c]ta9 k9ds ( prop]ty1 see 8,classes ( deprecia# prop]ty0 on ? page4 ,column #i--,,cca =! ye> ,9 column #i1 5t] ! ,,cca y wd l 6deduct = #bjjc4 ,! ,,cca y deduct _c 2 m ?an ! am.t y get :5 y multiply ! am.t #aha ,*apt] #c c#cb 9 column #g 0! rate 9 column #h4 ,y c deduct any am.t up 6! maximum4 ,if ? is yr f/ ye> ( busi;s1 y may h 6prorate yr ,,cca claim4 ,see 8,y 7 ask+80 on page #bi4 ,add up all ! am.ts 9 column #i = all yr classes ( deprecia# prop]ty & 5t] ! total on l9e #iicf1 8,capital co/ all[.e40 ,see 8,p]sonal use ( prop]ty0 on page #cd 6f9d \ h[ 6calculate yr ,,cca claim if y >e us+ ! prop]ty = bo? busi;s & p]sonal use4 ,column #aj--,,ucc at ! 5d (! ye> ,? is ! ,,ucc at ! 5d ( yr #bjjc fiscal p]iod4 ,x is ! am.t y w 5t] 9 column #b :5 y calculate yr ,,cca claim next ye>4 ,5t] 8#j0 9 column #aj if y h a t]m9al loss or a recapture ( ,,cca4 ,"! w n 2 #ahb ,*apt] #c d#cb an am.t 9 column #aj =a class #aj.a pass5g] vehicle y 4pose ( 9 ! ye>4 ,! example at ! 5d ( ? *apt] sums up ,,cca4 ,classes ( deprecia# prop]ty ,! foll[+ >e ! mo/ -mon classes ( deprecia# f>m prop]ty1 &! rates t apply 6ea* class4 ,build+s ,a build+ may 2l;g 6class #a1 #c1 or #f1 dep5d+ on :at ! build+ is made (&! date y acquir$ x4 ,y al 9clude 9 ^! classes ! "ps t make up ! build+1 s* z3 --electrical wir+ --lim+ or fi%+2 or --! build+ has no foot+s or o!r base supports 2l gr.d level4 ,if ei (! abv 3di;ns applies1 y al add 6class #f ! full co/ ( all a4i;ns & alt],ns 6! build+4 ,if nei (! abv 3di;ns applies1 9clude ! build+ 9 class #f if ."o (! foll[+ 3di;ns applies3 --y acquir$ ! build+ 2f #aigi2 --y 5t]$ 96an agree;t 2f #aigi 6acquire ! build+1 & foot+s or o!r base supports 7 />t$ 2f #aigi2 or --y />t$ 3/ruc;n (! build+ 2f #aigi 7or x 0 />t$ "u ! t]ms (a writt5 agree;t y 5t]$ 962f #aigi71 & foot+s or o!r base supports (! build+ 7 />t$ 2f #aigi4 ,= a4i;ns or alt],ns 6s* a build+3 --,add 6class #f3 --all a4i;ns made 2f #aigi2 & #ahf ,*apt] #c b#cc --only ! f/ 4#ajj1jjj ( a4i;ns or alt],ns made af #aigh4 --,add 6class #c3 --! "p (! co/ ( all a4i;ns or alt],ns abv 4#ajj1jjj made af #aigh & 2f #aihh2 & --! "p (! co/ ( a4i;ns or alt],ns abv 4#ajj1jjj made af #aihg1 b only up 64#ejj1jjj or #be@3p (! co/ (! build+1 :i*"e is less4 --,add 6class #a any a4i;ns or alt],ns abv ^! limits4 ,if y ne$ m 9=m,n1 see ,9t]pret,n ,bullet9 ,,it-#gi1 ,capital ,co/ ,all[.e --,build+s or ,o!r ,/ructures4 ,o!r prop]ty--,class #h 7#bj@3p7 ,class #h 9cludes prop]ty t is n 9clud$ 9 any o!r class4 ,= example1 furniture1 appli.es1 fixtures1 mo/ #ahg ,*apt] #c c#cc ma*9]y1 & equip;t y use 9 yr busi;s >e all 9 ? class4 ,/orage facilities = fre% fruit & vegeta#s--,class #h 7#bj@3p7 ,9clude build+s y use 6/ore fre% fruit or vegeta#s at a 3troll$ temp]ature 9 class #h 9/1d ( class #a1 #c1 or #f4 ,al 9clude 9 class #h any build+s y use 6/ore silage4 ,electronic (fice equip;t-- ,classes #h 7#bj@3p71 #aj 7#cj@3p71 & #ab 7#ajj@3p7 ,c]ta9 types ( -put] equip;t & (fice -munic,n & electronic equip;t c 2come obsolete 2f y c fully deduct _! co/ = 9come tax purposes4 ,? 9cludes photocopi]s & fax ma*9es4 ,= s* prop]ty acquir$ af ,april #bf1 #aiic1 y c elect 69clude ! prop]ty 9 a sep>ate #ahh ,*apt] #c d#cc class4 ,! elec;n w only apply 6ea* prop]ty t co/s 4#a1jjj or m4 ,? class does n *ange ! ,,cca rate t applies 6! prop]ties4 ,h["e1 ! elec;n lets y calculate a sep>ate ,,cca deduc;n =a five-ye> p]iod4 ,9 ? way1 :5 all ! prop]ty 9 ! class is 4pos$ (1 ! undepreciat$ capital co/ 7,,ucc7 (! equip;t w 2 fully deducti# z a t]m9al loss4 ,= m 9=m,n on t]m9al losses1 see 8,column #e--,,ucc af a4i;ns & 4posi;ns0 on page #ca4 ,6make an elec;n 69clude ? prop]ty 9 a sep>ate prescrib$ class1 atta* a lr 6yr 9come tax return =! tax ye> 9 : y acquir$ ! prop]ty4 ,note ,y mi foll[+ ! tax ye> 9 : ! prop]ty 2came availa# = use4 ,if s1 y w h 6transf] ! ,,ucc ( ea* sep>ate class f ! sep>ate #ahi ,*apt] #c e#cc prescrib$ class 6! g5]al class 9 : x wd o!rwise 2l;g4 ,pass5g] vehicles--,class #aj.a 7#cj@3p7 ,yr pass5g] vehicle c 2l;g 6ei class #aj or class #aj.a4 ,we def9e a 8pass5g] vehicle0 on page #bj4 ,9clude yr pass5g] vehicle 9 class #aj un.s x meets a class #aj.a 3di;n4 ,li/ ea* class #aj.a vehicle sep>ately4 ,9clude yr pass5g] vehicle 9 class #aj.a if y b"\ x 9 #bjjc or #bjjb1 & x co/ m ?an 4#cj1jjj4 ,we 3sid] ! capital co/ ( t vehicle 6be 4#cj1jjj1 plus ! relat$ ,,gst & ,,pst or ,,hst4 ,! 4#cj1jjj am.t is ! capital co/ limit =a pass5g] vehicle4 ,h["e1 6det]m9e ! class 6: yr pass5g] vehicle 2l;gs1 y h 6use ! co/ (! vehicle 2f y add ,,gst & ,,pst or ,,hst4 #aij ,*apt] #c #cd ,example ,vivi5ne [ns a f>m+ busi;s4 ,on ,june #ba1 #bjjc1 %e b"\ two pass5g] vehicles 6use 9 h] f>m+ busi;s4 ,! ,,pst rate = h] prov9ce is #h@3p4 ,vivi5ne kept ! foll[+ records = #bjjc3 ,transcrib]'s note3 7,! foll[+ 0 set-up 9 f\r columns3 ,column #a3 ,co/ ,column #b3 ,,gst ,column #c3 ,,pst ,column #d3 ,total7 ,vehicle #a3 ,co/3 4#cc1jjj ,,gst3 4#b1caj ,,pst3 4#b1fdj ,total3 4#cg1iej #aia ,*apt] #c a#cd ,vehicle #b3 ,co/3 4#bh1jjj ,,gst3 4#a1ifj ,,pst3 4#b1bdj ,total3 4#cb1bjj ,vivi5ne puts vehicle #a 9 class #aj.a1 s9ce %e b"\ x 9 #bjjc & x co/ h] m ?an 4#cj1jjj4 ,2f ,vivi5ne 5t]s an am.t 9 column #c ( ,>ea ;,a1 %e has 6calculate ! ,,gst & ,,pst on 4#cj1jjj4 ,%e does ? z foll[s3 --,,gst at #g@3p ( 4#cj1jjj equals 4#b1ajj2 & --,,pst at #h@3p ( 4#cj1jjj equals 4#b1djj4 ,"!=e1 ,vivi5ne's capital co/ is 4#cd1ejj 74#cj1jjj plus 4#b1ajj plus 4#b1djj74 ,%e 5t]s ? am.t 9 column #c ( ,>ea ;,a4 ,vivi5ne puts vehicle #b 96class #aj1 s9ce %e b"\ x 9 #bjjc & x did n #aib ,*apt] #c b#cd co/ h] m ?an 4#cj1jjj4 ,vivi5ne's capital co/ is 4#cb1bjj 74#bh1jjj plus 4#a1ifj plus 4#b1bdj74 ,%e 5t]s ? am.t 9 column #c ( ,>ea ;,a4 ,note ,! ,,gst rate is #g@3p & we us$ a ,,pst rate ( #h@3p = ? example4 ,6det]m9e ! ,,pst = yr calcul,n1 use ! curr5t rate t applies 9 yr prov9ce or t]ritory4 ,y may al live 9 a prov9ce t has h>moniz$ sales tax 7,,hst7 ( #ae@3p4 ,= m 9=m,n ab ,,hst1 see ! ,g5]al ,9=m,n = ,,gst/,,hst ,regi/rants guide4 ,special situ,ns ,*ang+ f p]sonal 6busi;s use ,if y b"\ a prop]ty = p]sonal use & !n />t$ us+ x 9 yr f>m+ busi;s 9 yr #bjjc fiscal p]iod1 "! is a *ange 9 use4 ,y #aic ,*apt] #c c#cd ne$ 6det]m9e ! capital co/ = busi;s purposes4 ,5t] ! fair m>ket value 7,,fmv7 (! prop]ty 9 column #c ( ,>ea ;,a or ;,b1 :i*"e applies1 if1 at ! "t ( *ange 9 use1 ! ,,fmv (! deprecia# prop]ty is less ?an xs orig9al co/4 ,:5 y />t 6use yr prop]ty = f>m+ busi;s use1 y >e 3sid]$ 6h 4pos$ ( x4 ,if ! ,,fmv (! prop]ty is grt] ?an xs co/1 y may h a capital ga9 un.s y file an elec;n4 ,see ,*apt] #f = an explan,n ( capital ga9s4 ,use ! foll[+ *>t 6det]m9e ! am.t 65t] 9 column #c :5 ! ,,fmv is m ?an xs orig9al co/4 #aid ,capital co/ calcul,n d#cd 7,a7 ,actual co/ (! prop]ty """"""""""""""""""""""" 4#---- 7,b7 ,,fmv (! prop]ty """" 4#---- 7,c7 ,am.t on l9e ;,a """" 4#---- 7,d7 ,l9e ;,b .m9us l9e ;,c 7if negative1 5t] 8#j07 """""""""""""""""" 4#---- 7,e7 ,5t] all capital ga9s deduc;ns claim$ =! am.t on l9e ;,d 99 4#---- multipli$ 0#b """ 4#---- 7,f7 ,l9e ;,d .m9us l9e ;,e 7if negative1 5t] 8#j07 4#---- multipli$ 0"o-half """""""""""""""""""""" 4#---- 7,g7 ,capital co/ 7l9e ;,a .plus l9e ;,f7 """""""""""" 4#---- 99 ,5t] ! am.t t relates 6! deprecia# prop]ty only4 #aie ,*apt] #c e#cd ,5t] ! capital co/ (! prop]ty f l9e ;,g 9 column #c ( ,>ea ;,a or ;,b4 ,we 3sid] t y acquire ! l& = an am.t equal 6xs ,,fmv :5 y *ange xs use4 ,9clude ? am.t on l9e #iibc1 8,total co/ ( all l& a4i;ns 9 ! ye>10 9 ,>ea ;,f4 ,p]sonal use ( prop]ty ,if y buy prop]ty = bo? busi;s & p]sonal use1 y c %[ ! busi;s "p (! prop]ty 9 ,>ea ;,a or ;,b 9 two ways3 --,if yr busi;s use /ays ! same f ye> 6ye>1 5t] ! total co/ (! prop]ty 9 column #c1 ! p]sonal "p 9 column #d1 &! busi;s "p 9 column #e4 ,5t] ! am.t f column #e 9 column #c ( ,>ea ;,e 6calculate ! ,,cca y c claim4 --,if yr busi;s use *anges f ye> 6ye>1 5t] ! total co/ (! prop]ty 9 column #c & column #e1 & 5t] 8#j0 9 column #d4 ,5t] ! am.t f #aif ,*apt] #c f#cd column #e 9 column #c ( ,>ea ;,e 6calculate ! ,,cca y c claim4 ,:5 y claim ,,cca1 y w h 6calculate ! all[a# "p y c claim = busi;s use4 ,example ,j5nif] [ns a busi;s4 ,%e b"\ a c> 9 #bjjc t %e uses = bo? p]sonal & busi;s use4 ,! c> co/ 4#bj1jjj1 9clud+ all *>ges & taxes4 ,"!=e1 %e 9cludes ! c> 9 class #aj4 ,h] busi;s use v>ies f ye> 6ye>4 ,%e calculates h] ,,cca on ! c> = #bjjc z foll[s3 ,%e 5t]s 4#bj1jjj 9 column #c & column #e ( ,>ea ;,a4 ,%e al 5t]s 4#bj1jjj 9 column #c ( ,>ea ;,e4 ,0-plet+ ! o!r columns 9 ! *>t1 %e calculates a ,,cca claim ( 4#c1jjj4 ,2c ,j5nif] us$ h] c> "ply = p]sonal use1 %e calculates h] ,,cca claim z foll[s3 #aig ,*apt] #c g#cd #ab1jjj 7busi;s kilometres7 divid$ 0#ah1jjj 7total kilometres7 multipli$ 04#c1jjj equals 4#b1jjj ,j5nif] 5t]s 4#b1jjj on l9e #iicf4 -------------------------------------#ce ,note ,! capital co/ limits on a class #aj.a vehicle 7a pass5g] vehicle7 / apply :5 y split ! capital co/ 2t busi;s & p]sonal use4 ,= m details1 see 8,pass5g] vehicles--,class #aj.a0 on page #cc4 ,grants1 subsidies1 & rebates ,y may get a grant1 subsidy1 or rebate f a gov]n;t or a gov]n;t ag5cy 6buy deprecia# prop]ty4 ,:5 ? happ5s1 subtract ! am.t (! grant1 subsidy1 or rebate f ! prop]ty's capital co/4 ,d ? 2f y 5t] ! capital co/ 9 column #c ( ,>ea ;,a or ;,b4 #aih ,*apt] #c a#ce ,if ! rebate is m ?an ! rema9+ undepreciat$ capital co/ 9 ! "picul> class1 add ! excess 69come at l9e #iegj1 8,rebates40 ,y may h 9curr$ ,,gst or ,,hst on "s (! deprecia# prop]ty y acquir$ = yr busi;s4 ,if s1 y may h al rcvd an 9put tax cr$it f u4 ,! 9put tax cr$it is gov]n;t assi/.e4 ,"!=e1 subtract x f ! prop]ty's capital co/4 ,d ? 2f y 5t] ! capital co/ 9 column #c ( ,>ea ;,a or ;,b1 :i*"e applies4 ,if y rcv an 9put tax cr$it =a pass5g] vehicle y use 9 yr busi;s1 use ."o ( ^! me?ods3 --,=a pass5g] vehicle y use #ij@3p or m (! "t = yr busi;s1 subtract ! am.t (! cr$it f ! vehicle's co/ 2f y 5t] xs capital co/ 9 column #c ( ,>ea ;,a4 --,=a pass5g] vehicle y use less ?an #ij@3p (! "t = yr busi;s1 d n make an adju/;t 9 #bjjc4 ,9 #bjjd1 #aii ,*apt] #c b#ce subtract ! am.t (! cr$it f yr 2g9n+ undepreciat$ capital co/4 ,y may get an 9c5tive f a non-gov]n;t ag5cy 6buy deprecia# prop]ty4 ,if ? happ5s1 y c ei 9clude ! am.t 9 9come at l9e #iegj1 or subtract ! am.t f ! capital co/ (! prop]ty4 ,see ,9t]pret,n ,bullet9 ,,it-#bgc1 ,gov]n;t ,assi/.e--,g5]al ,-;ts1 & xs ,special ,rel1se1 = m details ab gov]n;t assi/.e4 ,non->m's l5g? transac;ns ,:5 y acquire deprecia# prop]ty 9 a non->m's l5g? transac;n 7see ! def9i;n on page #bh71 "! >e special rules 6foll[ 6det]m9e ! prop]ty's co/4 ,^! special rules w n apply if y get ! prop]ty 2c ( "s"o's d1?4 ,y c acquire deprecia# prop]ty 9 a non->m's l5g? transac;n f3 #bjj ,*apt] #c c#ce --a resid5t ( ,canada2 --a "pn]%ip ) at l1/ "o "pn] :o is an 9dividual resid5t 9 ,canada2 or --a "pn]%ip ) at l1/ "o "pn] t is ano!r "pn]%ip4 ,if y pay m =! prop]ty ?an ! sell] pd =! same prop]ty1 calculate ! capital co/ z foll[s3 ,capital co/ calcul,n 7,a7 ,! sell]'s co/ or capital co/ """"""""""""""""""" 4#---- 7,b7 ,! sell]'s proce$s ( 4posi;n """""""""""""""" 4#---- 7,c7 ,am.t f l9e ;,a """"" 4#---- 7,d7 ,l9e ;,b .m9us l9e ;,c 7if negative1 5t] 8#j07 """""""""""""""""" 4#---- 7,e7 ,5t] any capital ga9s deduc;n claim$ =! am.t on l9e ;,d 4#---- multipli$ 0#b """""""""" 4#---- #bja ,*apt] #c d#ce 7,f7 ,l9e ;,d .m9us l9e ;,e 7if negative1 5t] 8#j07 4#---- multipli$ 0"o-half """""""""""""""""""""" 4#---- 7,g7 ,capital co/ 7l9e ;,a .plus l9e ;,f7 """""""""""""""""""""" 4#---- ,5t] ? am.t 9 column #c ( ei ,>ea ;,a or ;,b1 :i*"e applies4 ,d n 9clude ! co/ (! relat$ l&4 ,9clude ! co/ (! relat$ l& on l9e #iibc1 8,total co/ ( all l& a4i;ns 9 ! ye>10 9 ,>ea ;,f on ,=m ,t#bjdb4 ,we 3sid] t y acquire ! l& = an am.t equal 6xs ,,fmv :5 y *ange xs use4 ,9clude ? am.t on l9e #iibc4 ,"! is a limit on ! co/ (a pass5g] vehicle y buy 9 a non->m's l5g? transac;n4 ,! co/ is "o ( ^! am.ts1 ..:i*"e is ! .l1/3 #bjb ,*apt] #c e#ce --! ,,fmv :5 y buy x2 --if y b"\ x 9 #bjjc or #bjjb1 4#cj1jjj .plus any ,,gst & ,,pst1 or ,,hst y wd pay on 4#cj1jjj2 or --! sell]'s co/ am.t (! vehicle :5 y buy x4 ,! co/ am.t c v>y1 dep5d+ on :at ! sell] us$ ! vehicle = 2f y b"\ x4 ,if ! sell] us$ ! vehicle 6e>n 9come1 ! co/ am.t w 2 ! undepreciat$ capital co/ 7,,ucc7 (! vehicle :5 y buy x4 ,if ! sell] did n use ! vehicle 6e>n 9come1 ! co/ am.t w usu,y 2 ! orig9al co/ (! vehicle4 -------------------------------------#cf ,y c al buy deprecia# prop]ty 9 a non- >m's l5g? transac;n f a corpor,n or an 9dividual :o is n a resid5t ( ,canada1 or a "pn]%ip ) no "pn]s :o >e 9dividuals resid5t 9 ,canada or no "pn]s t >e o!r "pn]%ips4 ,if y pay m =! prop]ty ?an ! sell] pd =! same prop]ty1 calculate ! capital co/ z foll[s3 #bjc ,capital co/ calcul,n a#cf 7,a7 ,! sell]'s co/ or capital co/ """"""""""""""""""" 4#---- 7,b7 ,! sell]'s proce$s ( 4posi;n """""""""""""""" 4#---- 7,c7 ,am.t f l9e ;,a """"" 4#---- 7,d7 ,l9e ;,b .m9us l9e ;,c 7if negative1 5t] 8#j07 4#---- multipli$ 0"o-half """""""""""""""""""""" 4#---- 7,e7 ,capital co/ 7l9e ;,a .plus l9e ;,d7 """""""""""" 4#---- ,5t] ? am.t 9 column #c ( ei ,>ea ;,a or ;,b1 :i*"e applies4 ,d n 9clude ! co/ (! relat$ l&4 ,9clude ! co/ (! relat$ l& on l9e #iibc1 8,total co/ ( all l& a4i;ns 9 ! ye>10 9 ,>ea ;,f on ,=m ,t#bjdb4 ,y mim's l5g? transac;n & pd less = x ?an ! sell] pd4 ,if t is ! case1 yr capital co/ is ! same am.t z ! #bjd ,*apt] #c b#cf sell] pd4 ,we 3sid] y 6h alr deduct$ z ,,cca ! di6];e 2t :at y pd & :at ! sell] pd4 ,5t] ! am.t y pd 9 column #c ( ,>ea ;,e4 ,5t] ! same am.t 9 ,>ea ;,a or ;,b1 :i*"e applies4 ,= m details on non->m's l5g? transac;ns1 see ,9t]pret,n ,bullet9 ,,it-#dje1 ,9adequate ,3sid],ns-- ,acquisi;ns & ,4posi;ns1 & ,9t]pret,n ,bullet9 ,,it-#dai1 ,m1n+ ( ,>m's ,l5g?4 ,special rules = 4pos+ (a build+ 9 ! ye> ,if y 4pos$ (a build+ 9 ! ye>1 special rules may apply t *ange ! am.t y use z proce$s ( 4posi;n = capital co/ purposes4 ,? happ5s :5 y meet bo? (! foll[+ 3di;ns3 --y 4pos$ (! build+ = an am.t less ?an bo? xs co/ am.t1 z calculat$ 2l1 & xs capital co/ 6y2 & --y1 or a p]son ) :om y d n d1l at >m's l5g? 7see ! def9i;n on #bje ,*apt] #c c#cf page #bh7 [n$ ! l& t ! build+ is on1 or ! l& next 6x1 : 0 nec =! build+'s use4 ,calculate ! .co/ .am.t z foll[s3 --,if ! build+ 0 ! only prop]ty 9 ! class1 ! co/ am.t is ! undepreciat$ capital co/ 7,,ucc7 (! class 2f y 4pos$ (! build+4 --,if "! is m ?an "o prop]ty 9 ! same class1 y h 6calculate ! co/ am.t ( ea* build+ z foll[s3 capital co/ (! build+ divid$ 0capital co/ ( all ! prop]ties 9 ! class t h n be5 previ\sly 4pos$ ( multipli$ 0,,ucc (! class equals co/ am.t (! build+ ,note ,if any prop]ty 9 ! class (! build+ t 0 acquir$ at non->m's l5g? 0 previ\sly us$ =a purpose o!r ?an ga9+ or produc+ 9come1 or if ! "p (a prop]ty us$ = ga9+ or produc+ 9come has #bjf ,*apt] #c d#cf *ang$1 ! capital co/ ( s* prop]ty has 6be recalculat$ 6det]m9e ! co/ am.t (! prop]ty4 ,if y 4pos$ (a build+ "u ^! 3di;ns & y or a p]son ) :om y d n d1l at >m's l5g? 4pos$ (! l& 9 ! same ye>1 calculate yr deem$ proce$s ( 4posi;n z %[n 9 ,calcul,n ;,a on page #cg4 ,if y1 or a p]son ) :om y d n d1l at >m's l5g?1 did n 4pose (! l& 9 ! same ye> z ! build+1 calculate yr deem$ proce$s ( 4posi;n z %[n 9 ,calcul,n ;,b on page #cg4 -------------------------------------#cg ,calcul,n ;,a--,l& & build+ sold 9 ! same ye> 7,a7 ,,fmv (! build+ at ! "t y 4pos$ ( x """"""""" 4#---- 7,b7 ,,fmv (! l& j 2f y 4pos$ ( x """""""""""""" 4#---- #bjg ,*apt] #c a#cg 7,c7 ,l9e ;,a .plus l9e ;,b """"""""""""""""""""""""""" 4#---- 7,d7 ,sell]'s co/ am.t (! l& """"""""""""""""""""" 4#---- 7,e7 ,total capital ga9s 7)\t res]ves7 f any 4posi;n (! l& 7s* z a *ange 9 use7 9 ! ?ree- ye> p]iod 2f y or a p]son n d1l+ at >m's l5g? ) y 4pos$ (! build+1 6ei y or ano!r p]son n d1l+ at >m's l5g? ) y """"""""""""""" 4#---- 7,f7 ,l9e ;,d .m9us l9e ;,e 7if negative1 5t] 8#j07 """""""""""""""""" 4#---- 7,g7 ,l9e ;,b or l9e ;,f1 :i*"e am.t is less """""""""""" 4#---- 7,h7 ,l9e ;,c .m9us l9e ;,g 7if negative1 5t] 8#j07 """"""""""""""""""""""""" 4#---- 7,i7 ,co/ am.t (! build+ j 2f y 4pos$ ( x """"""" 4#---- #bjh ,*apt] #c b#cg 7,j7 ,capital co/ (! build+ j 2f y 4pos$ ( x 4#---- 7,k7 ,l9e ;,i or l9e ;,j1 :i*"e am.t is less """"" 4#---- 7,l7 ,l9e ;,a or l9e ;,k1 :i*"e am.t is m """"""""""""""" 4#---- ,deem$ proce$s ( 4posi;n =! build+ 7,m7 ,l9e ;,h or l9e ;,l1 :i*"e am.t is less 75t] ? am.t 9 column #c ( ,>ea ;,d1 & 9clude x 9 column #d ( ,>ea ;,e7 """"" 4#---- ,deem$ proce$s ( 4posi;n =! l& 7,n7 ,proce$s ( 4posi;n (! build+ &! l& """""""""""""""""" 4#---- 7,o7 ,am.t f l9e ;,m """""""""""" 4#---- 7,p7 ,l9e ;,n .m9us l9e ;,o 79clude ? am.t on l9e #iibd ( ,>ea ;,f7 """"""""""""""""""""" 4#---- #bji ,*apt] #c c#cg ,if y h a t]m9al loss on ! build+1 9clude x on l9e #igij1 8,o!r exp5ses40 ,calcul,n ;,b--,l& & build+ sold 9 di6]5t ye>s 7,a7 ,co/ am.t (! build+ j 2f y 4pos$ ( x """"""""""""""""""""" 4#---- 7,b7 ,,fmv (! build+ j 2f y 4pos$ ( x """"""""""""""""""""" 4#---- 7,c7 ,l9e ;,a or l9e ;,b1 :i*"e am.t is m """"""""""""""""""""" 4#---- 7,d7 ,actual proce$s ( 4posi;n1 if any """""""""""""""""""""""" 4#---- 7,e7 ,l9e ;,c .m9us l9e ;,d """"" 4#---- 7,f7 ,l9e ;,e 4#---- multipli$ 0"o-half """""""""""""""""""""" 4#---- 7,g7 ,am.t f l9e ;,d """""""""""" 4#---- #baj ,*apt] #c d#cg ,deem$ proce$s ( 4posi;n =! build+ 7,h7 ,l9e ;,f .plus l9e ;,g 75t] ? am.t 9 column #c ( ,>ea ;,d1 & 9clude x 9 column #d ( ,>ea ;,e7 """""""""""""""""""""""""" 4#---- ,if y h a t]m9al loss on ! build+1 9clude x on l9e #igij1 8,o!r exp5ses40 ,ord9>ily1 y c deduct all (a t]m9al loss1 b only "p (a capital loss4 ,calcul,n ;,b 5sures t y use ! same frac;n 6calculate a t]m9al loss =a build+ z y use 6calculate a capital loss on l&4 ,z a result ( ? calcul,n1 y add a "p (! am.t on l9e ;,e 6! actual proce$s ( 4posi;n f ! build+ 7see 8,t]m9al loss0 on page #ca74 ,replace;t prop]ty ,9 a few cases1 y c po/p"o or def] a4+ a capital ga9 or recapture ( #baa ,*apt] #c e#cg ,,cca 69come4 ,y mi "o1 or yr prop]ty mi "o4 ,y c def] tax on ! am.t ( sale proce$s if y re9ve/ !m 9 replace;t prop]ty )9 a r1sona# p]iod ( "t4 ,6def] report+ ! ga9 or recapture ( ,,cca1 y m/ acquire1 & y1 or a p]son relat$ 6y1 m/ use ! new prop]ty =! same or simil> purpose z ! "o t y >e replac+4 ,see ,9t]pret,n ,bullet9 ,,it-#bei1 ,ex*anges ( ,prop]ty1 & ,9t]pret,n ,bullet9 ,,it-#dia1 ,=m] ,busi;s ,prop]ty1 & xs ,special ,rel1se1 = m details4 -------------------------------------#ch ,y c al def] a capital ga9 or recapture ( ,,cca :5 y transf] prop]ty 6a corpor,n1 a "pn]%ip1 or yr *4 ,= m details on transf]r+ prop]ty 6yr *1 see page #dh4 ,= 9=m,n on transf]s 6a corpor,n or a "pn]%ip1 see3 #bab ,*apt] #c a#ch --,9=m,n ,circul> #gf-ai1 ,transf] ( ,prop]ty 6a ,corpor,n ,"u ,sec;n #he2 --,9t]pret,n ,bullet9 ,,it-#bia1 ,transf] ( ,prop]ty 6a ,corpor,n ,"u ,subsec;n #he7#a72 --,9t]pret,n ,bullet9 ,,it-#cgh1 ,w9d+-,up (a ,"pn]%ip2 & --,9t]pret,n ,bullet9 ,,it-#dac1 ,elec;n 0,memb]s (a ,"pn]%ip ,"u ,subsec;n #ig7#b74 ,! foll[+ example summ>izes ? *apt] on ,,cca4 ,example ,9 #bjjc1 ,trevor b"\ a build+ 6use = 8 f>m+ busi;s4 ,! total co/ 0 4#ie1jjj 7! sum (! 4#ij1jjj total pur*ase price &! 4#e1jjj total exp5ses 3nect$ )! pur*ase7 z foll[s3 #bac ,*apt] #c b#ch ,build+ value """"""""""""""""" 4#ge1jjj ,l& value """"""""""""""""""""" 4#ae1jjj ,total pur*ase price """""""""" 4#ij1jjj ,exp5ses 3nect$ )! pur*ase3 ,legal fees """""""""""""""""""" 4#c1jjj ,l& transf] taxes """""""""""""" 4#b1jjj ,total fees """""""""""""""""""" 4#e1jjj ,trevor's f>m+ busi;s has a ,decemb] #ca ye>-5d4 ,9 #bjjc1 ,trevor's f>m+ 9come 0 4#f1jjj1 & 8 exp5ses 7 4#d1ijj4 ,"!=e1 8 net 9come 2f deduct+ ,,cca 0 4#a1ajj 74#f1jjj m9us 4#d1ijj74 ,2f ,trevor c -plete 8 ,,cca s*$ule1 he has 6calculate ! capital co/ (! build+4 ,s9ce l& is n deprecia# f>m prop]ty1 he has 6calculate ! "p (! exp5ses 3nect$ )! pur*ase t relates only 6! build+4 ,6d ?1 he has 6use ! #bad ,*apt] #c c#ch foll[+ =mula1 : we expla9 on page #cj "u ! h1d+ 8,l&40 4#ge1jjj divid$ 04#ij1jjj multipli$ 04#e1jjj equals 4#d1aff.fg ,? 4#d1aff.fg repres5ts ! "p (! 4#e1jjj 9 legal fees & l& transf] taxes t relates 6! pur*ase (! build+1 :ile ! rema9+ 4#hcc.cc relates 6! pur*ase (! l&4 ,"!=e1 ! capital co/ (! build+ is3 ,build+ value """""""""""""" 4#ge1jjj.jj ,relat$ exp5ses """"""""""""" 4#d1aff.fg ,capital co/ (! build+ """"" 4#gi1aff.fg ,trevor 5t]s 4#gi1aff.fg 9 column #c ( ,>ea ;,b & 4#ae1hcc.cc 74#ae1jjj plus 4#hcc.cc7 on l9e #iibc ( ,>ea ;,f z ! capital co/ (! l&4 #bae ,*apt] #c d#ch ,note ,trevor did n [n f>m prop]ty 2f #bjjc4 ,"!=e1 he has no undepreciat$ capital co/ 65t] 9 column #b ( ,>ea ;,e4 ,trevor acquir$ 8 f>m prop]ty 9 #bjjc4 ,"!=e1 he is subject 6! #ej@3p rule t we expla9 "u ! h1d+ 8,column #f--,adju/;t = curr5t-ye> a4i;ns0 on page #ca4 #baf ,*apt] #d--,eligi# e#ch ,capital ,exp5ditures ,:at is an eligi# capital exp5diture8 ,y may buy prop]ty t has no physical exi/;e1 b gives y a la/+ economic b5efit4 ,"s examples >e milk & egg quotas4 ,we call ? k9d ( prop]ty .eligi# .capital .prop]ty4 ,! price y pay 6buy ? k9d ( prop]ty is an .eligi# .capital .exp5diture4 ,:at is an annual all[.e8 ,y _c deduct ! full co/ ( an eligi# capital exp5diture1 2c ! co/ is capital &! eligi# capital prop]ty gives y a la/+ economic b5efit4 ,h["e1 y c deduct "p ( xs co/ ea* ye>4 ,we call ! am.t y c deduct yr .annual .all[.e4 #bag ,:at is a cumulative f#ch eligi# capital 7,,cec7 a3.t8 ,? is ! bookkeep+ record y set up 6det]m9e yr annual all[.e4 ,y al use yr ,,cec a3.t 6keep track (! prop]ty y buy & sell4 ,we call ! prop]ty 9 yr ,,cec a3.t yr eligi# capital prop]ty4 ,y base yr annual all[.e on ! bal.e 9 yr a3.t at ! 5d ( yr fiscal p]iod4 ,keep a sep>ate a3.t = ea* busi;s4 ,h[ 6calculate yr annual all[.e ,-plete ! foll[+ *>t 6calculate yr annual all[.e &! bal.e 9 yr ,,cec a3.t at ! 5d ( yr #bjjc fiscal p]iod4 #bah ,calculat+ yr annual all[.e #ci & yr ,,cec a3.t bal.e at ! 5d ( yr #bjjc fiscal p]iod 7,a7 ,bal.e 9 ! a3.t at ! />t ( yr #bjjc fiscal p]iod """"""""""""""""""""""""" 4#---- 7,b7 ,eligi# capital exp5ditures y made 9 yr #bjjc fiscal p]iod """"" 4#---- 7,c7 #ge@3p multipli$ 0l9e ;,b """""""""""""""""""""" 4#---- 7,d7 ,l9e ;,a .plus l9e ;,c """"""""""""""""""""""""""" 4#---- 7,e7 ,all ! am.ts y rcvd or >e 5titl$ 6rcv f ! sale ( eligi# capital prop]ty 9 yr #bjjc fiscal p]iod """"""""""" 4#---- 7,f7 ,all ! am.ts t 2came receiva# 9 yr #bjjc fiscal p]iod f ! sale ( eligi# capital prop]ties 2f ,june #ah1 #aihg """""""""""""""""" 4#---- #bai ,*apt] #d a#ci 7,g7 ,l9e ;,e .plus l9e ;,f """""""""""""""""""" 4#---- 7,h7 #ge@3p multipli$ 0l9e ;,g """""""""""""""""""""" 4#---- 7,i7 ,,cec a3.t bal.e ,l9e ;,d .m9us l9e ;,h """"""""""""""""" 4#---- 7,j7 ,annual all[.e3 #g@3p multipli$ 0l9e ;,i """""""""""" 4#---- 7,k7 ,,cec a3.t bal.e at ! 5d ( #bjjc4 ,l9e ;,i .m9us l9e ;,j 4#---- ,note ,an eligi# capital exp5diture is reduc$ 0! am.t ( any assi/.e rcvd or receiva# f a gov]n;t4 ,al1 an am.t =giv5 7or 5titl$ 6be =giv57 on loans f a gov]n;t reg>d+ an eligi# capital exp5diture reduces yr ,,cec a3.t4 ,an eligi# capital exp5diture made 9 a non->m's l5g? transac;n is reduc$ 0! capital ga9s deduc;n claim$ 0! sell]4 .,"u .propos$ .am5d;ts1 an eligi# capital exp5diture made 9 a #bbj ,*apt] #d b#ci non->m's l5g? transac;n af ,decemb] #bj1 #bjjb1 is al reduc$ 0! non-taxa# por;n (! sell]'s ga94 ,if yr fiscal p]iod is less ?an #cfe "ds1 y h 6prorate yr claim4 ,base yr claim on ! numb] ( "ds 9 yr fiscal p]iod -p>$ 6#cfe "ds4 ,y c deduct an annual all[.e if "! is a .positive bal.e 9 yr ,,cec a3.t at ! 5d ( yr #bjjc fiscal p]iod4 ,y c deduct up 6a maximum ( #g@3p (! bal.e1 b y d n h 6deduct ! maximum annual all[.e4 ,if "! is a .negative bal.e 9 yr ,,cec a3.t1 see 8,sale ( eligi# capital prop]ty-- ,fiscal p]iod 5d+ 9 #bjjc0 on page #dj4 ,example ,sylvie />t$ h] f>m+ busi;s on ,janu>y #a1 #bjjc4 ,h] busi;s has a ,decemb] #ca ye>-5d4 ,dur+ #bjjc1 %e b"\ a milk quota = 4#ace1jjj4 ,6calculate h] annual all[.e & h] ,,cec a3.t bal.e at #bba ,*apt] #d c#ci ! 5d ( h] fiscal ye>1 %e -pletes ! *>t z foll[s3 ,sylvie's ,,cec a3.t 7,a7 ,bal.e at ! />t ( h] #bjjc fiscal p]iod """"""""""""""""""""""""" 4#j.jj 7,b7 ,milk quota co/ dur+ h] #bjjc fiscal p]iod """"" 4#ace1jjj 7,c7 #ge@3p multipli$ 0l9e ;,b """"""""" 4#aja1bej 7,d7 ,l9e ;,a .plus l9e ;,c """""""""""""""""""" 4#aja1bej 7,i7 ,sylvie does n h any am.ts on l9es ;,e to ;,h4 ,"!=e1 h] ,,cec a3.t bal.e is ! am.t on l9e ;,d4 """""" 4#aja1bej 7,j7 ,h] annual all[.e is #g@3p multipli$ 0l9e ;,i """"" 4#g1jhg 7,k7 ,bal.e at ! 5d ( #bjjc4 ,l9e ;,i .m9us l9e ;,j """""" 4#id1afc #bbb ,elec;n d#ci ,y c elect 6tr1t a 4posi;n ( eligi# capital prop]ty 7,,ecp7 z a capital ga9 9/1d ( 9clud+ x 9 ! *>t 8,calculat+ yr annual all[.e & yr ,,cec a3.t bal.e at ! 5d ( yr #bjjc fiscal p]iod0 on ? page4 ,if y make ! elec;n1 ! proce$s ( 4posi;n on l9es ;,e & ;,f (! *>t >e 3sid]$ 6be equal 6! orig9al co/4 ,y c !n dcl a capital ga9 equal 6yr actual proce$s ( 4posi;n .m9us ! co/ ( acquisi;n4 ,report ! details on ! 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 l9e on ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjc4 ,! elec;n is only availa# if y meet ! foll[+ 3di;ns3 --y 4pos$ ( an ,,ecp2 --! co/ (! ,,ecp c 2 det]m9$2 --! proce$s ( 4posi;n exce$ ! co/2 --! ,,ecp t y 4pos$ ( is n gdwill2 & --y h no exempt ga9s bal.e4 ,mak+ ! elec;n w help y if y h capital losses 6apply ag/ yr ga94 #bbc ,*apt] #d e#ci ,! elec;n may al help if y >e eligi# 6claim a capital ga9s deduc;n & y 4pos$ ( an ,,ecp t is a qualifi$ f>m prop]ty4 ,if y 4pos$ ( an ,,ecp t 0 a qualifi$ f>m prop]ty1 any deem$ ga9 report$ "u ! elec;n is al 3sid]$ 6be f a 4posi;n ( qualifi$ f>m prop]ty4 ,if ? is ! case1 report ! details on ! 8,qualifi$ f>m prop]ty0 l9e on ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjc1 9/1d (! 8,r1l e/ate1 deprecia# prop]ty1 & o!r prop]ties0 l9e4 ,see 8,qualifi$ f>m prop]ty & cumulative capital ga9s deduc;n0 on page #dg4 ,atta* a note 6yr 9come tax return /at+ t y >e elect+ "u subsec;n #ad7#a.ja7 (! ,9come ,tax ,act4 -------------------------------------#dj ,sale ( eligi# capital prop]ty --,fiscal p]iod 5d+ 9 #bjjc ,:5 y sell eligi# capital prop]ty1 y h 6subtract "p (! proce$s ( 4posi;n f yr ,,cec a3.t4 #bbd ,*apt] #d a#dj ,y h 6d ? calcul,n if y sell eligi# capital prop]ty3 --in yr #bjjc fiscal p]iod2 or --2f ,june #ah1 #aihg1 &! proce$s ( 4posi;n 2come due 6y 9 yr #bjjc fiscal p]iod4 ,= #bjjc1 ! am.t y h 6subtract is #ge@3p (! .total ( ^! am.ts3 --! proce$s ( 4posi;n ( all eligi# capital prop]ty y sell 9 yr #bjjc fiscal p]iod 79clude ! am.t f a sale ev5 if y d n get any or all (! proce$s until af #bjjc72 & --! am.t ( any proce$s t 2come due 6y 9 yr #bjjc fiscal p]iod f eligi# capital prop]ty y sold 2f ,june #ah1 #aihg4 ,if y h a negative bal.e 9 yr ,,cec a3.t af y subtract ! requir$ am.t1 y h 6calculate ! "p ( t am.t 69clude 9 yr f>m+ 9come4 ,! "p (! negative am.t 9 yr ,,cec a3.t t exce$s ! annual all[.es deduct$ is multipli$ 0two-?irds4 ,6t result1 #bbe ,*apt] #d b#dj y add ! excess or annual all[.es deduct$1 :i*"e is less4 ,? is ! am.t 69clude 9 yr f>m+ 9come4 ,! foll[+ example %[s h[ 6calculate ! am.t 69clude 9 f>m+ 9come4 ,example ,c>ol />t$ h] f>m+ busi;s on ,janu>y #a1 #aiig1 )a ,decemb] #ca ye>-5d4 ,9 #aiig1 %e b"\ an egg quota = 4#be1jjj4 ,c>ol sold h] f>m+ busi;s on ,septemb] #a1 #bjjc4 ,%e sold h] egg quota = 4#fe1jjj & %e does n h any o!r eligi# capital prop]ty 9 h] f>m+ busi;s4 ,%e deduct$ annual all[.es ea* ye> z foll[s3 #aiig 4#a1cac #aiih 4#a1bbj #aiii 4#a1ace #bjjj 4#a1jef #bjja "" 4#ihb #bjjb "" 4#iac ,total 4#f1fai #bbf ,*apt] #d c#dj ,! am.t 9clud$ 9 ,c>ol's f>m+ 9come on l9e #ifjj1 8,o!r 9come10 is ! total ( am.ts ;,a & ;,c3 ,calcul,n ( am.t ;,a ,! less] ( ;i7 or ;ii73 ;i7 ,excess am.t calculat$ z foll[s3 ,proce$s ( 4posi;n3 4#fe1jjj 4#fe1jjj multipli$ 0#ge@3p """" 4#dh1gej ,plus3 total annual all[.es deduct$ """""""""""""""""""""" 4#f1fai ,subtotal """"""""""""""""""""" 4#ee1cfi .,m9us3 #ge@3p ( eligi# capital exp5ditures 4#be1jjj multipli$ 0#ge@3p "" 4#ah1gej 7i7 ,excess am.t """""""""""""" 4#cf1fai ;ii7 ,total annual all[.es deduct$ """""""""""""""""""""" 4#f1fai ,! less] ( ;i7 or ;ii7 """"""""" 4#f1fai #bbg ,*apt] #d d#dj ,calcul,n ( am.t ;,b ,excess am.t """"""" 4#cf1fai .,m9us3 total annual deduc;ns tak5 """"" 4#f1fai 4#cj1jjj ,calcul,n ( am.t ;,c ,l9e ;,b multipli$ 0two-?irds """""""""""""""""" 4#bj1jjj ,l9e ;,a .plus l9e ;,c """""""" 4#bf1fai ,! am.t ,c>ol 9cludes 9 f>m+ 9come on l9e #ifjj1 8,o!r 9come10 is 4#bf1fai4 ,c>ol does n h an exempt ga9s bal.e 9 ? example1 2c %e did n file ,=m ,t#ffd1 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid4 ,if y fil$ ,=m ,t#ffd1 see ,*apt] #e 9 ! ,busi;s & ,profes.nal ,9come guide = 9=m,n ab eligi# capital prop]ty4 ,if ! prop]ty is 3sid]$ 6be a qualifi$ f>m prop]ty1 "p (! f>m+ 9come may #bbh ,*apt] #d e#dj 2 eligi# =! capital ga9s deduc;n4 ,= m details1 r1d ! foll[+ sec;n4 ,f>m+ 9come f ! sale ( eligi# capital prop]ty eligi# =! capital ga9s deduc;n ,"p ( yr f>m+ 9come f ! sale ( eligi# capital prop]ty 7,,ecp7 t is .qualifi$ .f>m .prop]ty may 2 eligi# =! capital ga9s deduc;n4 ,y w f9d ! def9i;n ( .qualifi$ .f>m .prop]ty on page #dg4 ,if y h m ?an "o busi;s1 d a sep>ate calcul,n = ea*4 ,if y >e a sole proprietor1 -plete ,*>t #a1 on ! next page1 6calculate ! am.t eligi# =! capital ga9s deduc;n f ! sale ( ,,ecp4 ,if yr f>m+ busi;s is a "pn]%ip1 -plete ,*>t #b4 #bbi ,*>t #a--,sole proprietor #da ,f>m+ 9come eligi# =! capital ga9s deduc;n 7,a7 ,f>m+ 9come f ! sale ( ,,ecp 7o!r ?an recapture ( annual all[.es deduct$ 9 previ\s ye>s7 = #bjjc 2f apply+ yr exempt ga9s bal.e 99 """""""""" 4#---- 7,b7 ,all or "p ( yr exempt ga9s bal.e =! busi;s t y >e us+ 6reduce ! am.t on l9e ;,a = #bjjc """""""""""" 4#---- 7,c7 ,l9e ;,a .m9us l9e ;,b """"""""""""""""""""""""""" 4#---- 7,d7 ,all proce$s ( 4posi;n f ! sale ( ,,ecp t is ,,qfp dur+ fiscal p]iods t 2gan af #aihg & 5d$ 2f ,febru>y #bh1 #bjjj """"""""""""" 4#---- #bcj ,*apt] #d a#da 7,e7 ,all eligi# capital exp5ditures made or 9curr$ = ,,qfp sold dur+ fiscal p]iods t 2gan af #aihg & 5d$ 2f ,febru>y #bh1 #bjjj """""""""" 4#---- 7,f7 ,\tlays & exp5ses relat$ 64posi;ns describ$ on l9e ;,d n deduct$ 9 calculat+ 9come 4#---- 7,g7 ,l9e ;,e .plus l9e ;,f """""""""""""""""""" 4#---- 7,h7 ,l9e ;,d .m9us l9e ;,g """""""""""""""""""" 4#---- 7,i7 ,am.t f l9e ;,h 4#---- multipli$ 0?ree- qu>t]s """""""""""""""""""""""" 4#---- 7,j7 ,all proce$s ( 4posi;n f ! sale ( #bca ,*apt] #d b#da ,,ecp t is ,,qfp dur+ fiscal p]iods 5d+ af ,febru>y #bg1 #bjjj1 & 2f ,octob] #ah1 #bjjj "" 4#---- 7,k7 ,all eligi# capital exp5ditures made or 9curr$ = ,,qfp sold dur+ fiscal p]iods 5d+ af ,febru>y #bg1 #bjjj1 & 2f ,octob] #ah1 #bjjj 7,l7 ,\tlays & exp5ses relat$ 64posi;ns describ$ on l9e ;,j n deduct$ 9 calculat+ 9come 4#---- 7,m7 ,l9e ;,k .plus l9e ;,l """""""""""""""""""" 4#---- 7,n7 ,l9e ;,j .m9us l9e ;,m """""""""""""""""""" 4#---- #bcb ,*apt] #d c#da 7,o7 ,am.t f l9e ;,n 4#---- multipli$ 0two- ?irds """"""""""""""""""""""""" 4#---- 7,p7 ,all proce$s ( 4posi;n f ! sale ( ,,ecp t is ,,qfp dur+ fiscal p]iods 5d+ af ,octob] #ag1 #bjjj """"" 4#---- 7,q7 ,all eligi# capital exp5ditures made or 9curr$ = ,,qfp sold dur+ fiscal p]iods 5d+ af ,octob] #ag1 #bjjj """""""""" 4#---- 7,r7 ,\tlays & exp5ses relat$ 64posi;ns describ$ on l9e ;,p n deduct$ 9 calculat+ 9come 4#---- 7,s7 ,l9e ;,q .plus l9e ;,r """""""""""""""" 4#---- #bcc ,*apt] #d d#da 7,t7 ,l9e ;,p .m9us l9e ;,s """""""""""""""" 4#---- 7,u7 ,am.t f l9e ;,t 4#---- multipli$ 0"o-half """""""""""""""""""""" 4#---- 7,v7 ,l9e ;,i .plus l9e ;,o .plus l9e ;,u """"""""""""""""""""""""""" 4#---- 7,w7 ,all taxa# capital ga9s f ! 4posi;ns ( ,,ecp (! f>m+ busi;s t is ,,qfp = fiscal p]iods t 2gan af #aihg & 5d$ 2f ,febru>y #bc1 #aiid """""""""""""""""" 4#---- 7,x7 ,f>m+ 9come eligi# =! capital ga9s deduc;n f ! sale ( ,,ecp t is ,,qfp = fiscal p]iods t 2gan af ,febru>y #bb1 #aiid1 & 5d$ 2f ,janu>y #a1 #bjjc """""""""""""" 4#---- 7,y7 ,l9e ;,w .plus l9e ;,x """"" 4#---- #bcd ,*apt] #d e#da 7,z7 ,l9e ;,v .m9us l9e ;,y """"" 4#---- 7,,aa7 ,f>m+ 9come eligi# =! capital ga9s deduc;n = #bjjc 7l9e ;,c or l9e ;,z1 :i*"e is less7 """"""""""""""""""""""""" 4#---- ,5t] ! am.t f l9e .,,aa on l9e #agc ( ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjc4 ,y c get ? s*$ule 9 ! ,g5]al ,9come ,tax & ,b5efit ,guide package4 ,6claim ! capital ga9s deduc;n1 use ,=m ,t#feg1 ,calcul,n ( ,capital ,ga9s ,deduc;n = #bjjc4 99 ,y only h an exempt ga9s bal.e if y fil$ ,=m ,t#ffd1 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid4 ,= 9=m,n on h[ 6apply yr exempt capital ga9s bal.e1 see ! ,busi;s & ,profes.nal ,9come guide4 #bce ,*>t #b--,"pn]%ips ,f>m+ #db 9come eligi# =! capital ga9s deduc;n 7,a7 ,f>m+ 9come f ! sale ( ,,ecp 7o!r ?an recapture ( annual all[.es deduct$ 9 previ\s ye>s7 = #bjjj """"""""" 4#---- 7,b7 ,all proce$s ( 4posi;n f ! sale ( ,,ecp t is ,,qfp dur+ fiscal p]iods t 2gan af #aihg & 5d$ 2f ,febru>y #bh1 #bjjj """"""""""""" 4#---- 7,c7 ,all eligi# capital exp5ditures made or 9curr$ = ,,qfp sold dur+ fiscal p]iods t 2gan af #aihg & 5d$ 2f ,febru>y #bh1 #bjjj """""""""" 4#---- #bcf ,*apt] #d a#db 7,d7 ,\tlays & exp5ses relat$ 64posi;ns describ$ on l9e ;,b n deduct$ 9 calculat+ 9come 4#---- 7,e7 ,l9e ;,c .plus l9e ;,d """""""""""""""" 4#---- 7,f7 ,l9e ;,b .m9us l9e ;,e """""""""""""""" 4#---- 7,g7 ,am.t f l9e ;,f 4#---- multipli$ 0?ree- qu>t]s """""""""""""""""""""""" 4#---- 7,h7 ,all proce$s ( 4posi;n f ! sale ( ,,ecp t is ,,qfp dur+ fiscal p]iods 5d+ af ,febru>y #bg1 #bjjj1 & 2f ,octob] #ah1 #bjjj "" 4#---- 7,i7 ,all eligi# capital exp5ditures made or 9curr$ = ,,qfp sold dur+ fiscal #bcg ,*apt] #d b#db p]iods 5d+ af ,febru>y #bg1 #bjjj1 & 2f ,octob] #ah1 #bjjj """""""""" 4#---- 7,j7 ,\tlays & exp5ses relat$ 64posi;ns describ$ on l9e ;,h n deduct$ 9 calculat+ 9come 4#---- 7,k7 ,l9e ;,i .plus l9e ;,j """""""""""""""" 4#---- 7,l7 ,l9e ;,h .m9us l9e ;,k """""""""""""""" 4#---- 7,m7 ,am.t f l9e ;,l 4#---- multipli$ 0two- ?irds """"""""""""""""""""""""" 4#---- 7,n7 ,all proce$s ( 4posi;n f ! sale ( ,,ecp t is ,,qfp dur+ fiscal p]iods 5d+ af ,octob] #ag1 #bjjj """"" 4#---- #bch ,*apt] #d c#db 7,o7 ,all eligi# capital exp5ditures made or 9curr$ = ,,qfp sold dur+ fiscal p]iods 5d+ af ,octob] #ag1 #bjjj """""""""" 4#---- 7,p7 ,\tlays & exp5ses relat$ 64posi;ns describ$ on l9e ;,n n deduct$ 9 calculat+ 9come 4#---- 7,q7 ,l9e ;,o .plus l9e ;,p """""""""""""""" 4#---- 7,r7 ,l9e ;,n .m9us l9e ;,q """""""""""""""" 4#---- 7,s7 ,am.t f l9e ;,r 4#---- multipli$ 0"o- half """""""""""""""""""""""""" 4#---- 7,t7 ,l9e ;,g .plus l9e ;,m .plus l9e ;,s """"""""""""" 4#---- #bci ,*apt] #d d#db 7,u7 ,all taxa# capital ga9s f ! 4posi;n ( ,,ecp =! f>m+ busi;s t is ,,qfp = fiscal p]iods t 2gan af #aihg & 5d$ 2f ,febru>y #bc1 #aiid """""""""""""""""" 4#---- 7,v7 ,f>m+ 9come eligi# =! capital ga9s deduc;n f ! sale ( ,,ecp t is ,,qfp = fiscal p]iods t 2gan af ,febru>y #bb1 #aiid1 & 5d$ 2f ,janu>y #a1 #bjjc """""""""""""" 4#---- 7,w7 ,l9e ;,u .plus l9e ;,v """"" 4#---- 7,x7 ,l9e ;,t .m9us l9e ;,w """"" 4#---- 7,y7 ,f>m+ 9come eligi# =! capital ga9s deduc;n = #bjjc 7! less] ( l9e ;,a & l9e ;,x7 4#---- 7,z7 ,yr %>e (! am.t on l9e ;,y 4#---- 7,,aa7 ,! am.t y claim$ z a busi;s 9come reduc;n = #bjjc 99 """""""""""""""""""""" 4#---- #bdj ,*apt] #d e#db 7,,bb7 ,yr %>e (! f>m+ 9come eligi# =! capital ga9s deduc;n 7l9e ;,z .m9us l9e ,,aa7 """""" 4#---- ,5t] ! am.t f l9e .,,bb 7abv7 on l9e #agc ( ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjc4 ,6claim ! capital ga9s deduc;n1 use ,=m ,t#feg1 ,calcul,n ( ,capital ,ga9s ,deduc;n = #bjjc4 99 ,y wd only h a busi;s 9come reduc;n if y fil$ ,=m ,t#ffd1 ,elec;n 6,report a ,capital ,ga9 on ,prop]ty ,[n$ at ! ,5d ( ,febru>y #bb1 #aiid4 ,= 9=m,n ab apply+ yr busi;s 9come reduc;n1 see ! ,capital ,ga9s guide4 -------------------------------------#dc ,replace;t prop]ty ,if y sell an eligi# capital prop]ty & replace x ) ano!r "o =! same or simil> use1 y c po/p"o all or "p ( any ga9 on ! sale4 ,? happ5s if y acquire a #bda ,*apt] #d a#dc replace;t eligi# capital prop]ty )9 a c]ta9 p]iod ( "t4 ,6d ?1 y h 6replace ! prop]ty no lat] ?an "o ye> af ! 5d (! tax ye> 9 : y sell ! orig9al prop]ty4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it- #bei1 ,ex*anges ( ,prop]ty4 ,= m 9=m,n ab eligi# capital exp5ditures1 see ,9t]pret,n ,bullet9 ,,it-#abc1 ,transac;ns ,9volv+ ,eligi# ,capital ,prop]ty1 & ,9t]pret,n ,bullet9 ,,it-#adc1 ,m1n+ ( ,eligi# ,capital ,exp5diture1 & xs ,special ,rel1se4 #bdb ,*apt] #e--,f>m ,losses b#dc ,:5 ! exp5ses = yr f>m+ busi;s >e m ?an ! 9come =! ye>1 y h a net op]at+ loss4 ,h["e1 2f y c calculate yr net f>m loss =! ye>1 y may h 69cr1se or decr1se ! loss 0c]ta9 adju/;ts expla9$ 9 8,l9e #iida--,op;nal 9v5tory adju/;t 9clud$ 9 #bjjc0 on page #bc1 & 8,l9e #iidb-- ,m&atory 9v5tory adju/;t 9clud$ 9 #bjjc0 on page #bd4 ,if y %[ a net f>m loss =! ye>1 r1d ? *apt] = 9=m,n on h[ 6tr1t yr loss4 ,= m details on f>m losses1 see ,9t]pret,n ,bullet9 ,,it-#cbb1 ,f>m ,losses4 ,! am.t (! net f>m loss y c deduct dep5ds on ! nature & ext5t ( yr busi;s4 ,yr f>m loss may be3 --fully deducti#2 --"ply deducti# 7re/rict$ f>m loss72 or --non-deducti#4 #bdc ,fully deducti# f>m losses c#dc ,if y made yr liv+ f f>m+1 we 3sid] f>m+ 6be yr *ief s\rce ( 9come4 ,z l;g z f>m+ 0 yr *ief s\rce ( 9come1 y c deduct ! full am.t ( yr net f>m loss f o!r 9come4 ,f>m+ c / 2 yr *ief s\rce ( 9come ev5 if yr f>m did n %[ a pr(it4 ,o!r 9come cd -e f 9ve/;ts1 "p-"t employ;t1 & s on4 ,6det]m9e if f>m+ 0 yr *ief s\rce ( 9come1 y ne$ 63sid] s* factors z3 --gross 9come2 --net 9come2 --capital 9ve/$2 --ca% fl[2 --p]sonal 9volve;t2 --yr f>m's abil;y 6make a pr(it 7bo? actual & pot5tial72 & --plans 6ma9ta9 or develop yr f>m & h[ y c>ri$ \ ^! plans4 ,al? y may h be5 a "pn] 9 a f>m+ busi;s1 y / h 6det]m9e if f>m+ 0 yr [n *ief s\rce ( 9come4 #bdd ,*apt] #e d#dc ,:5 f>m+ is yr *ief s\rce ( 9come & y %[ a net f>m loss 9 #bjjc1 y may h 6reduce ! loss :5 y h o!r 9come 9 #bjjc4 ,any loss t is left is yr f>m loss = #bjjc4 ,example ,rick's f>m+ busi;s1 : is 8 *ief s\rce ( 9come1 has a ,decemb] #ca fiscal ye>-5d4 ,8 f>m loss 2f adju/;ts is 4#ej1jjj4 ,he wants 6reduce 8 loss 0! op;nal 9v5tory adju/;t 7,,oia74 ,rick kept ! foll[+ records = #bjjc3 ,net f>m loss 2f adju/;ts """"" 4#ej1jjj ,op;nal 9v5tory adju/;t """"""" 4#ae1jjj ,o!r 9come """"""""""""""""""""" 4#b1jjj #bde ,*apt] #e e#dc ,6reduce ! loss am.t1 ,rick a4s back 8 ,,oia4 ,he det]m9es 8 f>m loss = #bjjc z foll[s3 ,f>m loss 2f adju/;ts """"""" 74#ej1jjj7 .,add op;nal 9v5tory adju/;t "" 4#ae1jjj ,f>m loss af adju/;ts """"""" 74#ce1jjj7 .,add o!r 9come """""""""""""""" 4#b1jjj ,f>m loss = #bjjc """"""""""" 74#cc1jjj7 ,c>ryback--#bjjc f>m loss ,y c c>ry back yr #bjjc f>m loss = up 6?ree ye>s4 ,y c al c>ry x =w>d up 6t5 ye>s4 ,9 bo? cases1 y c deduct x f yr 9come f all s\rces 9 ^? ye>s4 ,if y *oose 6c>ry back yr #bjjc f>m loss 6yr #bjjj1 #bjja1 or #bjjb 9come tax returns1 -plete ,=m ,t#a;,a1 ,reque/ = ,loss ,c>ryback & file "o copy (! =m ) yr #bjjc 9come tax return4 ,d n file an am5d$ return =! ye> 6: y apply ! loss4 #bdf ,apply+ yr f>m losses f f#dc ye>s 2f #bjjc ,y may 2 a# 6apply f>m losses y _h 9 any ye> f #aiic 6#bjjb on yr #bjjc 9come tax return14 ,y c apply ^! losses if y did n alr deduct !m1 & y h net 9come 9 #bjjc4 ,6apply ^! losses 6#bjjc1 y h 6apply ! loss f ! e>lie/ ye> f/4 ,5t] ! am.t y wi% 6deduct on l9e #beb on yr 9come tax return4 ,non-capital loss ,y may h 9curr$ a loss 9 #bjjc f a busi;s o!r ?an f>m+4 ,if ? loss is m ?an yr o!r 9come =! ye>1 y may h a non- capital loss4 ,use ,=m ,t#a;,a 6calculate yr #bjjc non-capital loss4 -------------------------------------#dd ,y c c>ry back yr #bjjc non-capital loss up 6?ree ye>s & c>ry x =w>d up 6sev5 ye>s4 ,if y *oose 6c>ry back yr #bjjc non- capital loss 6yr #bjjj1 #bjja1 or #bdg ,*apt] #e a#dd #bjjb 9come tax returns1 -plete ,=m ,t#a;,a4 ,file "o copy (! =m ) yr #bjjc return4 ,d n file an am5d$ return =! ye> 6: y apply ! loss4 ,= m details ab non-capital losses1 see ,9t]pret,n ,bullet9 ,,it-#bcb1 ,losses--,_! ,deductibil;y 9 ! ,loss ,ye> or 9 ,o!r ,ye>s4 ,"ply deducti# losses 7re/rict$ f>m losses7 ,y may h run yr f>m z a busi;s4 ,= yr f>m 6be 3sid]$ a busi;s1 y m/ h c>ri$ on activities )! 9t5;n ( mak+ a pr(it & "! m/ 2 evid;e 6support t 9t5;n4 ,h["e1 if f>m+ 0 n yr *ief s\rce ( 9come 7= example1 y did n rely on f>m+ al"o 6make yr liv+71 y may 2 a# 6deduct only "p ( yr net f>m loss4 ,ea* ye> y h a f>m loss1 *eck yr situ,n c>e;lly 6see if f>m+ 0 yr *ief s\rce ( 9come4 ,x is important 6d ?1 #bdh ,*apt] #e b#dd s9ce a f>m+ loss may 2 re/rict$ 9 "o ye>1 b n 9 ano!r ye>4 ,h[ 6calculate yr re/rict$ f>m loss ,if f>m+ 0 n yr *ief s\rce ( 9come & y _h a net f>m loss1 ! loss y c deduct dep5ds on ! am.t ( yr net f>m loss4 ,:5 yr net f>m loss is 4#ae1jjj or m1 y c deduct 4#h1gej f yr o!r 9come4 ,! re/ ( yr net f>m loss is yr re/rict$ f>m loss4 ,:5 yr net f>m loss is less ?an 4#ae1jjj1 ! am.t y c deduct f yr o!r 9come is "o (! foll[+ two am.ts1 :i*"e is .less3 ,a7 yr net f>m loss =! ye>2 or ,b7 4#b1ejj .plus #ej@3p multipli$ by 7yr net f>m loss .m9us 4#b1ejj74 ,! am.t rema9+ is yr re/rict$ f>m loss4 #bdi ,*apt] #e c#dd ,note ,:5 ! f>m loss y deduct is di6]5t f yr actual f>m loss 2c (! re/rict$ f>m loss calcul,n1 y %d 9dicate ? on yr 9come tax return on ! l9e call$ 8,f>m+ ,9come40 ,= example1 y c d ? 0not+ 8re/rict$ f>m loss10 8,,rfl10 or 8,sec;n #ca0 6! left ( l9e #afh4 ,example ,%>on ran a cattle f>m )! 9t5;n ( mak+ a pr(it4 ,h["e1 f>m+ 0 n h] *ief s\rce ( 9come 9 #bjjc4 ,9 #bjjc1 %e _h employ;t 9come &a net f>m loss ( 4#i1bjj1 : %e calculat$ on l9e #iidf ( ,=m ,t#bjdb4 ,! "p ( ,%>on's net f>m loss %e c deduct f h] o!r 9come 9 #bjjc is ei am.t ;,a or ;,b1 :i*"e is .less3 ,a7 4#i1bjj2 or ,b7 4#b1ejj .plus #ej@3p multipli$ by 74#i1bjj m9us 4#b1ejj7 #bej ,*apt] #e d#dd 4#b1ejj .plus #ej@3p multipli$ 04#f1gjj ,"!=e1 ;,b equals 74#b1ejj plus 4#c1cej7 equals 4#e1hej4 ,2c ,%>on c only deduct ei ;,a or ;,b1 :i*"e am.t is .less1 %e 5t]s 4#e1hej on l9e #ada ( h] 9come tax return & deducts ? am.t f h] o!r 9come 9 #bjjc4 ,h] re/rict$ f>m loss is ! am.t t rema9s1 : is 4#c1cej 74#i1bjj .m9us 4#e1hej74 ,%>on pr9ts 8,sec;n #ca0 6! left ( l9e #afh on h] 9come tax return 6%[ t ! loss %e is deduct+ is ! result (a re/rict$ f>m loss calcul,n4 ,apply+ yr #bjjc re/rict$ f>m loss ,y c c>ry back yr #bjjc re/rict$ f>m loss up 6?ree ye>s1 & c>ry x =w>d up 6t5 ye>s4 ,! am.t y deduct 9 any ye> _c 2 m ?an yr net f>m+ 9come = t ye>4 ,if y h #bea ,*apt] #e e#dd no net f>m+ 9come 9 any ( ^? ye>s1 y _c deduct any re/rict$ f>m loss4 ,6c>ry back yr #bjjc re/rict$ f>m loss 6yr #bjjj1 #bjja1 or #bjjb 9come tax returns1 use ,=m ,t#a;,a1 ,reque/ = ,loss ,c>ryback1 & file "o copy (! =m ) yr #bjjc 9come tax return4 ,d n file an am5d$ return =! ye> 6: y wd l ! loss appli$4 ,apply+ yr re/rict$ f>m losses f ye>s 2f #bjjc ,y may h net f>m+ 9come 9 #bjjc4 ,if s1 y may 2 a# 6apply 6yr #bjjc 9come tax return re/rict$ f>m losses y _h 9 any ye> f #aiic 6#bjjb4 ,y c apply ^! losses z l;g z y did n alr deduct !m f yr f>m+ 9come4 ,al1 y c only apply !m up 6! am.t ( yr net f>m+ 9come 9 #bjjc4 ,y h 6apply ! loss f ! e>lie/ ye> f/1 2f y apply ! losses f o!r ye>s4 ,claim ? am.t on l9e #beb ( yr 9come tax return4 #beb ,*apt] #e f#dd ,y may h sold f>ml& at a "t :5 y _h re/rict$ f>m losses t y did n claim4 ,:5 ? happ5s1 y may 2 a# 6reduce ! am.t ( yr capital ga9 f ! sale4 ,= m details1 see 8,re/rict$ f>m losses0 on page #dg4 ,non-deducti# f>m losses ,if y did n run yr f>m z a busi;s1 y _c deduct any "p ( yr net f>m loss4 ,= yr f>m 6h be5 a busi;s1 "! m/ h be5 an 9t5t 6make a pr(it & evid;e support+ t 9t5;n4 ,! size & scope ( yr f>m may make x impossi# =! f>m 6make a pr(it1 ei n[ or 9 ! ne> future4 ,9 ? case1 y _c deduct yr f>m loss4 ,we 3sid] ? k9d ( f>m 6be p]sonal4 ,"!=e1 any f>m exp5ses >e p]sonal exp5ses4 #bec #bed ,*apt] #f--,capital ,ga9s #de ,? *apt] expla9s ! capital ga9s rules = p :o f>m4 ,we cov] ! g5]al capital ga9s rules 9 ! ,capital ,ga9s guide4 ,"?\t ? *apt]1 we use ! t]ms .sell1 .sold1 .buy1 or .b"\4 ,^! ^ws describe mo/ capital transac;ns4 ,h["e1 ! 9=m,n 9 ? *apt] al applies 6deem$ 4posi;ns or acquisi;ns4 ,:5 r1d+ ? *apt]1 y c use ! t]ms .sold 9/1d ( .4pos$ .(1 & .b"\ 9/1d ( .acquir$1 if !y m cle>ly describe yr situ,n4 ,li/ ! 4posi;ns ( all yr prop]ties on ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjc4 ,y c get ? s*$ule 9 ! ,g5]al ,9come ,tax & ,b5efit ,guide package4 ,y may 2 a "pn] 9 a "pn]%ip t provides y )a ,t#ejac slip1 ,/ate;t ( ,"pn]%ip ,9come4 ,if ! "pn]%ip has a capital ga91 ! "pn]%ip w allocate "p ( t ga9 6y4 ,! ga9 w 2 report$ on ! "pn]%ip's f9ancial /ate;ts or on yr ,t#ejac slip4 #bee ,:at is a capital ga98 a#de ,y h a capital ga9 :5 y sell1 or >e 3sid]$ 6h sold1 a capital prop]ty = .m ?an xs adju/$ co/ base .plus ! exp5ses or \tlays y 9curr$ 6sell ! prop]ty4 ,6calculate yr capital ga91 subtract ! adju/$ co/ base ( yr prop]ty f ! proce$s ( 4posi;n4 ,f ? am.t1 subtract any \tlays or exp5ses y 9curr$ :5 sell+ yr prop]ty4 ,9 mo/ cases1 capital prop]ty 9cludes l&1 build+s1 & equip;t t y us$ 9 yr f>m+ busi;s4 ,"!=e1 capital prop]ty 9cludes deprecia# & non-deprecia# prop]ty4 ,y h 69clude yr taxa# capital ga9 9 9come4 ,n all ( yr capital ga9 is taxa#4 ,g5],y1 = #bjjc yr taxa# capital ga9 is "o-half ( yr capital ga94 ,a 4posi;n ( deprecia# prop]ty may result 9 a recapture ( capital co/ all[.e 7,,cca74 ,we expla9 8recapture0 on page #ca4 #bef ,:at is a capital loss8 b#de ,y h a capital loss :5 y sell1 or >e 3sid]$ 6h sold1 non-deprecia# capital prop]ty = .less ?an xs adju/$ co/ base .plus ! exp5ses or \tlays y 9curr$ 6sell ! prop]ty4 ,6calculate yr capital loss1 subtract ! adju/$ co/ base ( yr prop]ty f ! proce$s ( 4posi;n4 ,f ? am.t1 subtract any \tlays or exp5ses y 9curr$ :5 sell+ yr prop]ty4 ,n all ( yr capital loss is deducti#4 ,= #bjjc1 yr all[a# capital loss is "o- half ( yr capital loss4 ,y c only deduct an all[a# capital loss f a taxa# capital ga94 ,a loss on a 4posi;n ( deprecia# prop]ty may only result 9 a t]m9al loss4 ,we expla9 8t]m9al loss0 on page #ca4 ,def9i;ns ,2f y c det]m9e yr capital ga9 or loss1 y w ne$ 6"k ! foll[+ t]ms4 #beg ,*apt] #f c#de ,proce$s ( 4posi;n--,in mo/ cases1 ! proce$s ( 4posi;n is ! sale price (! prop]ty4 ,we def9e ? t]m on page #bh4 ,adju/$ co/ base 7,,acb7--,! ,,acb is usu,y ! orig9al co/ (! prop]ty 79clud+ am.ts y pd 6buy x1 s* z -mis.ns & legal fees74 ,,acb 9cludes o!r co/s1 s* z ! co/ ( any a4i;ns or ! co/ 6r5ovate or improve ! prop]ty4 ,\tlays & exp5ses--,\tlays & exp5ses >e co/s y 9curr$ 6sell yr prop]ty4 ,^! 9clude co/s s* z -mis.ns1 surveyors' fees1 transf] taxes1 & adv]tis+ co/s4 ,fair m>ket value 7,,fmv7--,? is g5],y ! hi value y c get = yr prop]ty4 ,we def9e ? t]m on page #bh4 ,h[ 6calculate yr capital ga9 or loss ,6calculate yr capital ga9 or loss1 use ! foll[+ =mula3 #beh ,*apt] #f d#de 7,a7 ,proce$s ( 4posi;n """"""""" 4#---- 7,b7 ,adju/$ co/ base """"""""""" 4#---- 7,c7 ;,a .m9us ;,b """""""""""""" 4#---- 7,d7 ,\tlays & exp5ses """""""""" 4#---- 7,e7 ;,c .m9us ;,d equals ,capital ga9 7loss7 """"""""""" 4#---- ,note ,y h 6calculate ! capital ga9 or loss on ea* prop]ty sep>ately4 ,did y sell capital prop]ty 9 #bjjc t y [n$ 2f #aigb8 ,if y did1 y h 6apply a special set ( rules :5 y calculate yr capital ga9 or loss1 2c y did n h 6pay tax on capital ga9s 2f #aigb4 ,6help y calculate yr ga9 or loss f ! sale ( prop]ty y [n$ 2f #aigb1 use ,=m ,t#aaje1 ,supple;t>y ,s*$ule = ,4posi;ns ( ,capital ,prop]ty ,acquir$ ,2f #aigb4 #bei ,4pos+ ( f>ml& t 9cludes yr #df pr9cipal resid;e ,yr home is (t5 yr pr9cipal resid;e4 ,if yr home 0 yr pr9cipal resid;e = e ye> y [n$ x1 y g5],y d n pay tax on any capital ga9s :5 y 4pose ( x4 ,"!=e1 if y sold f>ml& t 9clud$ yr home 9 #bjjc1 only "p (! ga9 is taxa#4 ,y c *oose "o ( two me?ods 6det]m9e yr taxa# capital ga94 ,try bo? me?ods 6see : "o is be/ = y4 ,we usu,y 3sid] approximately "o acre ( l& 7half hect>e7 on : yr resid;e is situat$ 6be "p ( yr pr9cipal resid;e4 ,we w all[ y m if y c prove t y ne$$ m l& 6use & 5joy yr pr9cipal resid;e4 ,me?od #a ,sep>ately calculate ! capital ga9 on yr pr9cipal resid;e & ea* ( yr f>m prop]ties4 ,6d ?1 appor;n ! proce$s ( 4posi;n1 ! ,,acb1 & any sell+ exp5ses 2t3 #bfj ,*apt] #f a#df --yr pr9cipal resid;e2 & --ea* ( yr f>m prop]ties4 ,!n1 calculate ! .taxa# capital ga9 on yr pr9cipal resid;e1 if any1 & ea* (! f>m prop]ties4 ,value ! l& t is "p ( yr pr9cipal resid;e at "o (! foll[+ two am.ts1 :i*"e is .m3 --! ,,fmv (! l&2 or --! ,,fmv (a -p>a# resid5tial build+ site 9 ! >ea4 ,example ,on ,febru>y #a1 #bjjc1 ,hel5a sold h] #cb-acre f>m1 : 9clud$ h] pr9cipal resid;e4 ,"o acre ( l& is "p ( h] pr9cipal resid;e4 ,hel5a has ^! details3 ,value ( l& :5 %e pur*as$ h] f>m ,,fmv ( simil> f>ml& p] acre """ 4#g1ejj ,,fmv (a typical resid5tial build+ site 9 ! >ea """"""""" 4#ae1jjj #bfa ,*apt] #f b#df ,value ( l& :5 %e sold h] f>m ,,fmv ( simil> f>ml& p] acre "" 4#ab1jjj ,,fmv (a typical resid5tial build+ site 9 ! >ea """"""""" 4#be1jjj ,adju/$ co/ base 7,,acb7-- actual pur*ase price ,l& """""""""""""""""""""""""" 4#abj1jjj ,h\se """"""""""""""""""""""""" 4#fj1jjj ,b>n """""""""""""""""""""""""" 4#af1jjj ,silo """""""""""""""""""""""""" 4#d1jjj ,total """"""""""""""""""""""" 4#bjj1jjj ,proce$s ( 4posi;n--actual sale price ,l& """""""""""""""""""""""""" 4#bjj1jjj ,h\se """"""""""""""""""""""""" 4#ge1jjj ,b>n """""""""""""""""""""""""" 4#bj1jjj ,silo """""""""""""""""""""""""" 4#e1jjj ,total """"""""""""""""""""""" 4#cjj1jjj #bfb ,*apt] #f c#df ,transcrib]'s note3 7,! foll[+ 0 set-up 9 f\r columns4 ,column #a3 ,proce$s ( 4posi;n ,column #b3 ,pr9cipal resid;e ,column #c3 ,f>m prop]ties ,column #d3 ,total7 ,proce$s ( 4posi;n ,pr9cipal resid;e ,l& """""""""""""""""""""""" 4#be1jjj 99 ,h\se """"""""""""""""""""""""" 4#ge1jjj ,b>n """"""""""""""""""""""""""""""" n/a ,silo """""""""""""""""""""""""""""" n/a 7,add f\r previ\s l9es7 """""" 4#ajj1jjj .,m9us .,,acb ,l& """""""""""""""""""""""" 4#ae1jjj 99 ,h\se """"""""""""""""""""""""" 4#fj1jjj ,b>n """"""""""""""""""""""""""""""" n/a ,silo """""""""""""""""""""""""""""" n/a 7,add f\r previ\s l9es7 """"""" 4#ge1jjj .,ga9 .on .sale 74#ajj1jjj m9us 4#ge1jjj7 """"""""""""""""""" 4#be1jjj #bfc ,*apt] #f d#df .,m9us3 ,ga9 on pr9cipal resid;e 9999 """""""""""""""" 4#be1jjj .,capital .ga9 74#be1jjj m9us 4#be1jjj7 """"""""""""""""""""" 4#j.jj ,proce$s ( 4posi;n ,f>m prop]ties ,l& """""""""""""""""""""""""" 4#age1jjj ,h\se """""""""""""""""""""""""""""" n/a ,b>n """""""""""""""""""""""""" 4#bj1jjj ,silo """""""""""""""""""""""""" 4#e1jjj 7,add f\r previ\s l9es7 """""" 4#bjj1jjj .,m9us .,,acb ,l& """""""""""""""""""""""""" 4#aje1jjj ,h\se """""""""""""""""""""""""""""" n/a ,b>n """""""""""""""""""""""""" 4#af1jjj ,silo """""""""""""""""""""""""" 4#d1jjj 7,add f\r previ\s l9es7 """""" 4#abe1jjj .,ga9 .on .sale 74#bjj1jjj m9us 4#abe1jjj7 """""""""""""""""" 4#ge1jjj .,m9us3 ,ga9 on pr9cipal resid;e 9999 """"""""""""""""""""""""""""" n/a .,capital .ga9 74#ge1jjj m9us n/a7 """""""""""""""""""""""" 4#ge1jjj #bfd ,*apt] #f e#df ,proce$s ( 4posi;n ,total ,l& 74#be1jjj plus 4#age1jjj7 4#bjj1jjj ,h\se 74#ge1jjj plus n/a7 """"" 4#ge1jjj ,b>n 7n/a plus 4#bj1jjj7 """""" 4#bj1jjj ,silo 7n/a plus 4#e1jjj7 """"""" 4#e1jjj 7,add f\r previ\s l9es7 """""" 4#cjj1jjj .,m9us .,,acb ,l& 74#ae1jjj plus 4#aje1jjj7 4#abj1jjj ,h\se 74#fj1jjj plus n/a7 """"" 4#fj1jjj ,b>n 7n/a plus 4#af1jjj7 """""" 4#af1jjj ,silo 7n/a plus 4#d1jjj7 """"""" 4#d1jjj 7,add f\r previ\s l9es7 """""" 4#bjj1jjj .,ga9 .on .sale 74#cjj1jjj m9us 4#bjj1jjj7 """"""""""""""""" 4#ajj1jjj .,m9us3 ,ga9 on pr9cipal resid;e 9999 74#be1jjj m9us n/a7 """" 4#be1jjj .,capital .ga9 74#j.jj m9us 4#ge1jjj7 """"""""""""""""""" 4#ge1jjj .,taxa# .capital .ga9 7"o-half multipli$ 04#ge1jjj7 """""""" 4#cg1ejj #bfe ,*apt] #f f#df 99 ,hel5a uses ! value (a typical resid5tial build+ site =! l& t is "p ( h] pr9cipal resid;e1 2c ! ,,fmv (a typical site 9 ! >ea is m ?an ! ,,fmv ( "o acre ( f>ml&4 9999 ,2c ,hel5a's home 0 h] pr9cipal resid;e dur+ all ! ye>s %e [n$ x1 ! capital ga9 is n taxa#4 ,note ,if yr home 0 .n yr pr9cipal resid;e = e ye> y [n$ x1 "! cd 2 a capital ga9 on x t y h 69clude 9 yr 9come4 ,=m ,t#bjia7,,ind71 ,design,n (a ,prop]ty z a ,pr9cipal ,resid;e 0an ,9dividual 7,o!r ,?an a ,p]sonal ,tru/71 w help y calculate ! numb] ( ye>s y >e 5titl$ 6designate yr home z yr pr9cipal resid;e & calculate ! "p ( yr ga91 if any1 t is taxa#4 #bff ,me?od #b g#df ,det]m9e ! capital ga9 on yr l& & yr pr9cipal resid;e4 ,!n subtract 4#a1jjj f ! ga94 ,subtract an a4i;nal 4#a1jjj = ea* ye> af #aiga t ! prop]ty 0 yr pr9cipal resid;e & y 7 a resid5t ( ,canada4 ,us+ ,me?od #b1 y c reduce a ga9 6nil1 b y _c cr1te a loss4 ,6calculate yr capital ga91 use ! foll[+ =mula3 7,a7 ,proce$s ( 4posi;n """"""""" 4#---- 7,b7 ,adju/$ co/ base """"""""""" 4#---- 7,c7 ;,a .m9us ;,b """""""""""""" 4#---- 7,d7 ,\tlays & exp5ses """""""""" 4#---- 7,e7 ,capital ga9 2f reduc;n 7;,c .m9us ;,d7 """"""""""""""" 4#---- 7,f7 ,me?od #b reduc;n """""""""" 4#---- 7,g7 ,capital ga9 af reduc;n 7;,e .m9us ;,f7 """"""""""""""" 4#---- #bfg ,*apt] #f #dg ,note ,transf] ! 5tries on l9es ;,a1 ;,b1 ;,d1 & ;,g 6! relevant columns on ,s*$ule #c1 ,capital ,ga9s 7or ,losses7 9 #bjjc1 "u 8,qualifi$ f>m prop]ty0 or 8,r1l e/ate1 deprecia# prop]ties1 & o!r prop]ty40 ,if y *oose ? me?od1 atta* a lr 6yr 9come tax return t 9cludes ! foll[+ 9=m,n3 --a /ate;t 0y t y sold yr f>m & >e elect+ "u subp>agraph #dj7#b77c77;ii7 (! ,9come ,tax ,act2 --a descrip;n (! prop]ty y sold2 & --! numb] ( ye>s af #aiga t ! f>mh\se 0 yr pr9cipal resid;e dur+ : y 7 a resid5t ( ,canada 7if y pur*as$ yr f>m af #aiga1 give ! date y pur*as$ x74 ,z pro( (! value ( yr prop]ty1 reg>d.s (! me?od y *oose1 keep docu;ts t h ! foll[+ 9=m,n3 #bfh ,*apt] #f a#dg --a descrip;n (! f>m1 9clud+ ! size (! build+s & 3/ruc;n type2 --! co/ (! prop]ty &! date ( pur*ase2 --! co/ ( any a4i;ns or improve;ts y made 6! prop]ty2 --! assess;t = prop]ty tax purposes2 --any 9sur.e cov]age2 --! type ( l& 7>a#1 bu%1 or scrub72 & --! type ( f>m op],n4 ,if y ne$ m details1 see ,9t]pret,n ,bullet9 ,,it-#abj1 ,pr9cipal ,resid;e4 ,re/rict$ f>m losses ,y may h a capital ga9 f f>ml& y sell 9 #bjjc4 ,y may al h re/rict$ f>m losses f previ\s ye>s t y h n yet us$4 ,9 ? case1 y c deduct "p ( ^! losses f ! ga94 ,! "p y c deduct is ! prop]ty taxes &! 9t]e/ on m"oy y borr[$ 6buy ! l&1 if y 9clud$ ^! am.ts 9 ! calcul,n (! re/rict$ f>m loss 9 "q4 #bfi ,*apt] #f b#dg ,y _c use ! re/rict$ f>m loss 6cr1te or 9cr1se a capital loss on ! sale ( yr f>ml&4 ,qualifi$ f>m prop]ty & cumulative capital ga9s deduc;n ,if y h a taxa# capital ga9 f ! sale ( qualifi$ f>m prop]ty1 y may 2 a# 6claim a capital ga9s deduc;n4 ,we expla9 .qualifi$ .f>m .prop]ty on ? page4 ,= details on h[ 6calculate yr capital ga9s deduc;n1 see ,=m ,t#feg1 ,calcul,n ( ,capital ,ga9s ,deduc;n = #bjjc & ,=m ,t#icf1 ,calcul,n ( ,cumulative ,net ,9ve/;t ,loss 7,,cnil7 6,decemb] #ca1 #bjjc4 ,y may 2 a "pn] 9 a "pn]%ip t sold capital prop]ty4 ,9 ? case1 ! "pn]%ip 9cludes any taxa# capital ga9 9 xs 9come4 ,h["e1 z a "pn]1 y c only claim ! capital ga9s deduc;n = yr %>e (! ga9 on qualifi$ f>m prop]ty4 #bgj ,:at is qualifi$ f>m c#dg prop]ty8 ,qualifi$ f>m prop]ty is c]ta9 prop]ty y1 yr sp\se1 or -mon-law "pn] [n4 ,x is al c]ta9 prop]ty [n$ 0a family-f>m "pn]%ip 9 : y1 yr sp\se1 or -mon-law "pn] hold an 9t]e/4 ,we def9e 8sp\se0 & 8-mon-law "pn]0 9 ! ,g5]al ,9come ,tax & ,b5efit ,guide4 ,qualifi$ f>m prop]ty 9cludes3 --a %>e (! capital /ock (a family- f>m corpor,n t y1 yr sp\se1 or -mon-law "pn] [n2 --an 9t]e/ 9 a family-f>m "pn]%ip t y1 yr sp\se1 or -mon-law "pn] [n2 --r1l prop]ty1 s* z l& & build+s2 & --eligi# capital prop]ty1 s* z milk & egg quotas4 ,r1l prop]ty or eligi# capital prop]ty z qualifi$ f>m prop]ty ,r1l prop]ty or eligi# capital prop]ty is qualifi$ f>m prop]ty only if x #bga ,*apt] #f d#dg is us$ 6c>ry on a f>m+ busi;s 9 ,canada 0any ."o (! foll[+3 --y1 yr sp\se or -mon-law "pn]1 or any ( yr p>5ts or *n 7we def9e 8*n0 on page #dh72 --! b5efici>y (a p]sonal tru/1 or ! sp\se or -mon-law "pn]1 p>5t1 or * ( s* a b5efici>y2 --a family-f>m corpor,n ": any (! abv p]sons [ns a %>e (! corpor,n2 or --a family-f>m "pn]%ip ": any (! abv p]sons 7except a family-f>m corpor,n7 [ns an 9t]e/ 9 ! "pn]%ip4 ,y may h b"\ or 5t]$ 96an agree;t 6buy r1l or eligi# capital prop]ty 2f ,june #ah1 #aihg4 ,we 3sid] y 6h us$ ? prop]ty 9 c>ry+ on a f>m+ busi;s 9 ,canada if y meet ."o ( ^! 3di;ns3 --,in ! ye> y 4pos$ ( x1 ! prop]ty or ! "o x replac$ 0 us$ pr9cip,y 9 a f>m+ busi;s 9 ,canada 0any (! abv p]sons1 a family-f>m #bgb ,*apt] #f e#dg "pn]%ip1 or corpor,n1 or 0a p]sonal tru/ f : "o (! abv 9dividuals acquir$ ! prop]ty4 --,! prop]ty1 or ! prop]ty x replac$1 0 us$ pr9cip,y 9 a f>m+ busi;s 9 ,canada = at l1/ five ye>s 0any (! abv p]sons1 a family- f>m "pn]%ip1 or corpor,n1 or 0a p]sonal tru/ f : "o (! abv 9dividuals acquir$ ! prop]ty4 ,dur+ ? "t1 ! prop]ty 0 [n$ 0any (! abv p]sons or a family-f>m "pn]%ip or corpor,n4 -------------------------------------#dh ,we w al 3sid] r1l or eligi# capital prop]ty 6be us$ 6c>ry on a f>m+ busi;s 9 ,canada if y meet ! foll[+ 3di;ns3 --"?\t ! #bd mon?s 2f ! sale1 y1 yr sp\se or -mon-law "pn]1 any ( yr *n or p>5ts1 a p]sonal tru/ f : "o ( ^! p]sons acquir$ ! prop]ty1 or a family-f>m "pn]%ip 7in : any ( ^! p]sons has an 9t]e/7 m/ h [n$ ! prop]ty2 & #bgc ,*apt] #f a#dh --.y .meet ."o (! foll[+ two 3di;ns3 --! prop]ty or ! prop]ty x replac$ 0 us$ ma9ly 9 a f>m+ busi;s 9 ,canada 9 : any (! abv p]sons 0 actively 5gag$ on a regul> & ongo+ basis4 ,al1 9 any #bd mon?s ( [n]%ip1 ! p]son's gross 9come f ! f>m+ busi;s 0 l>g] ?an ! p]son's 9come f all o!r s\rces 9 ! ye>2 or --a family-f>m "pn]%ip or corpor,n us$ ! prop]ty = at l1/ #bd mon?s1 ma9ly 6c>ry on a f>m+ busi;s 9 ,canada4 ,al1 dur+ ? "t1 y1 yr sp\se or -mon-law "pn]1 any ( yr *n1 or yr p>5ts m/ h be5 actively 5gag$ on a regul> & ongo+ basis 9 ! f>m+ busi;s4 ,transf] ( f>m prop]ty 6a * ,y may 2 a# 6transf] ,canadian f>m prop]ty 6yr *4 ,:5 y d ?1 y c po/p"o tax on any taxa# capital ga9 & any recapture ( capital co/ all[.e until ! * #bgd ,*apt] #f b#dh sells ! prop]ty4 ,6d ?1 .bo? ( ^! 3di;ns h 6be met3 --,yr * is a resid5t ( ,canada j 2f ! transf]4 --,! f>m prop]ty is us$ ma9ly 9 a f>m+ busi;s 9 : y1 yr sp\se or -mon-law "pn]1 or any ( yr *n 7 actively 5gag$ on a regul> & ongo+ basis 2f ! transf]4 ,yr .*n 9clude3 --yr natural *1 yr adopt$ *1 or yr sp\se's or -mon-law "pn]'s *2 --yr gr&*ild or grt-gr&*ild2 --yr *'s sp\se or -mon-law "pn]2 & --ano!r p]son :o is :olly dep5d5t on y = support & :o is1 or 0 immly 2f ! age ( #ai1 9 yr cu/ody & "u yr 3trol4 ,! foll[+ types ( prop]ty qualify = ? transf]3 --f>ml&2 --deprecia# prop]ty1 9clud+ build+s2 & --eligi# capital prop]ty4 #bge ,*apt] #f c#dh ,fur!rmore1 a %>e (! capital /ock (a family-f>m corpor,n & an 9t]e/ 9 a family-f>m "pn]%ip al qualify = ? transf] if yr * is a resid5t ( ,canada j 2f ! transf]4 ,= mo/ prop]ty1 ! transf] price c 2 any am.t 2t ! adju/$ co/ base 7,,acb7 & xs fair m>ket value 7,,fmv74 ,= deprecia# prop]ty1 ! transf] price c 2 any am.t 2t xs undepreciat$ capital co/ 7,,ucc7 & ,,fmv4 ,= eligi# capital prop]ty1 ! transf] price c 2 any am.t 2t3 --xs ,,fmv2 & --f\r-?irds multipli$ 0yr cumulative eligi# capital prop]ty f ! f>m+ busi;s multipli$ 0,,fmv (! prop]ty divid$ 0,,fmv ( all yr eligi# capital prop]ty f ! f>m+ busi;s ,example ,wade wants 6transf] ^! f>m prop]ties 6,vicky1 8 #ai-ye>-old daum ,prop]ty 6,*1 & xs ,special ,rel1se4 ,transf] ( f>m prop]ty 6a * if a p>5t dies 9 ! ye> ,we all[ a tax-free transf] (a dec1s$ taxpay]'s ,canadian f>m prop]ty 6a * if .all ( ^! 3di;ns >e met3 --,! * 0 resid5t 9 ,canada j 2f ! p>5t's d1?4 --,! prop]ty 0 us$ ma9ly 9 a f>m+ busi;s on a regul> & ongo+ basis 0! dec1s$1 ! dec1s$'s sp\se or -mon-law "pn]1 or any (! *n 2f ! p>5t's d1?4 --,! prop]ty 0 transf]r$ 6! * no lat] ?an #cf mon?s af ! p>5t's d1?4 ,9 "s cases1 we may all[ ! #bgh ,*apt] #f f#dh transf] ev5 if x took place lat] ?an #cf mon?s af ! p>5t's d1?4 -------------------------------------#di ,! foll[+ types ( f>m prop]ty qualify = ? transf]3 --l& & build+s1 or o!r deprecia# prop]ty us$ 9 a f>m+ busi;s2 & --a %>e (! capital /ock (a family- f>m corpor,n1 & an 9t]e/ 9 a family-f>m "pn]%ip1 if ! * 0 resid5t 9 ,canada j 2f ! p>5t's d1? &! prop]ty transf]s 6! * no lat] ?an #cf mon?s af ! p>5t's d1?4 ,9 "s cases1 we may all[ ! transf] ev5 if x took place lat] ?an #cf mon?s af ! p>5t's d1?4 ,= mo/ prop]ty1 ! transf] price c 2 any am.t 2t ! ,,acb & xs ,,fmv4 ,= deprecia# prop]ty1 ! transf] price c 2 an am.t 2t ! prop]ty's ,,fmv &a special am.t4 ,= m 9=m,n1 see ,*apt] #d1 8,deem$ ,4posi;n ( ,prop]ty10 9 ! ,prep>+ ,returns = ,dec1s$ ,p]sons guide4 #bgi ,*apt] #f a#di ,! dec1s$'s legal repres5tative w *oose ! am.t 9 ! ye> ( d1?4 ,we 3sid] ! * 6acquire ^! prop]ties at ! am.t *os54 ,simil> rules al apply = prop]ty t a dec1s$ p]son l1s$ 6! family-f>m corpor,n or "pn]%ip4 ,if a * gets a f>m f a p>5t &! * lat] dies1 ! prop]ty c 2 transf]r$ 6! surviv+ p>5t bas$ on ! same rules4 ,%>es or o!r prop]ty (a family-f>m hold+ corpor,n c al 2 transf]r$1 bas$ on ! same rules1 f a sp\se or -mon-law "pn] tru/ 6a * (! settlor4 ,! settlor is ! p]son :o sets up a tru/1 or ! p]son :o transf]s prop]ty 6a tru/4 ,= m 9=m,n ab ! re/rictive m1n+ ( settlor1 see ,9t]pret,n ,bullet9 ,,it-#cgd1 ,m1n+ ( 8,settlor40 ,= m details on ^! transf]s1 see ,9t]pret,n ,bullet9 ,,it-#cdi1 ,9t]g5],nal ,transf]s ( ,f>m ,prop]ty on ,d1?1 & ,9t]pret,n ,bullet9 ,,it-#ddi1 ,m1n+ ( 8,ve/$ ,9def1sibly40 #bhj ,transf] ( f>m prop]ty 6a b#di sp\se or -mon-law "pn] ,a f>m] c transf] f>m prop]ty 6a sp\se or -mon-law "pn] or 6a sp\se or -mon-law "pn] tru/ dur+ ! f>m]'s life"t4 ,at ! "t (! transf]1 ! f>m] c po/p"o any taxa# capital ga9 or recapture ( ,,cca4 ,if ! sp\se or -mon-law "pn] lat] 4poses (! prop]ty1 ! f>m] g5],y has 6report any taxa# capital ga91 n ! sp\se or -mon-law "pn]4 ,? rule applies 6transf]s made af #aiga ": ! f>m] is liv+ at ! "t ! sp\se or -mon-law "pn] sells ! prop]ty4 ,h["e1 "! >e excep;ns 6? rule4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it-#eaa1 ,9t]sp\sal & ,c]ta9 ,o!r ,transf]s & ,loans ( ,prop]ty4 ,a transf] ( f>m prop]ty c al o3ur af ! f>m] dies4 ,= m 9=m,n1 see ,*apt] #d1 8,deem$ ,4posi;n ( ,prop]ty0 9 ! ,prep>+ ,returns = ,dec1s$ ,p]sons guide4 ,! rollov] provi.ns availa# = f>m prop]ty >e n[ ext5d$ 6l& & deprecia# prop]ty us$ pr9cip,y 9 a woodlot #bha ,*apt] #f c#di f>m+ busi;s4 ,!y w apply ": ! dec1s$1 ! dec1s$'s sp\se or -mon-law "pn]1 or any (! dec1s$'s *n 0 5gag$ 9 ! woodlot op],n z requir$ 0a ..prescrib$ =e/ manage;t .plan 9 respect (! woodlot4 ,^! provi.ns apply 6transf]s ( prop]ty t o3ur af ,decemb] #aj1 #bjja4 ,o!r special rules ,y may al 2 a# 6po/p"o pay+ tax on capital ga9s 9 ! foll[+ situ,ns4 ,res]ves ,:5 y 4pose (a capital prop]ty1 y usu,y rcv full pay;t at t "t4 ,h["e1 "s"ts y rcv ! am.t ov] a numb] ( ye>s4 ,g5],y1 a res]ve all[s y 6def] report+ "p (! capital ga9 6! ye> 9 : y rcv ! proce$s4 ,= example1 y may sell a capital prop]ty = 4#ej1jjj & rcv 4#aj1jjj at ! "t (! sale4 ,y rcv ! rema9+ 4#dj1jjj ov] f\r ye>s4 ,9 #bhb ,*apt] #f d#di ? situ,n1 y c claim a res]ve4 ,h["e1 "! is a limit 6! numb] ( ye>s y c d ?4 ,= m 9=m,n on res]ves1 see ! ,capital ,ga9s guide & ,=m ,t#bjag1 ,summ>y ( ,res]ves on ,4posi;ns ( ,capital ,prop]ty4 ,ex*anges or expropri,ns ( prop]ty ,"! >e special rules t apply :5 y 4pose (a prop]ty & replace x )a simil> "o1 or :5 "s"o expropriates yr prop]ty4 ,= m details1 see ,9t]pret,n ,bullet9 ,,it-#bei1 ,ex*anges ( ,prop]ty4 ,y may al want 6see ,9t]pret,n ,bullet9 ,,it- #bga1 ,expropri,ns--,"t & ,proce$s ( ,4posi;n1 & ,9t]pret,n ,bullet9 ,,it- #dia1 ,=m] ,busi;s ,prop]ty1 & xs ,special ,rel1se4 #bhc #bhd ,capital ,co/ ,all[.e #ej 7,,cca7 ,rates ,9 ? li/1 y w f9d ! m -mon deprecia# prop]ties a f>m+ busi;s may use4 ,! ,,cca rates appe> at ! 5d (! li/4 ,= details on ! ,,cca rates = classes #ac1 #ad1 #cd1 #dc.a1 & ,"p ,,xvii (! ,9come ,tax ,act1 call \r ,busi;s ,5quiries l9e at #a-hjj-iei-eebe4 ,deprecia# prop]ty """"""""" ,class ,no4 ,aircraft--,acquir$ 2f ,may #bf1 #aigf """""""""""""""""""""""""""" #af ,aircraft--,acquir$ af ,may #be1 #aigf """"""""""""""""""""""""""""" #i ,automobiles """"""""""""""""""""""" #aj ,bee equip;t """""""""""""""""""""""" #h ,boats & -pon5t "ps """"""""""""""""" #g ,br1kwat]s ,ce;t or /"o """""""""""""""""""""" #c ,wood """"""""""""""""""""""""""""" #f #bhe ,,cca rates a#ej ,brood]s """""""""""""""""""""""""""" #h ,build+s & -pon5t "ps ,wood1 galvaniz$1 or porta# """"""" #f ,o!r3 ,acquir$ af #aigh & 2f #aihh 99 """ #c ,acquir$ af #aihg """"""""""""""""" #a ,fruit & vegeta# /orage 7af ,feb4 #ai1 #aigc7 """"""""""""""" #h ,cas+1 crib"w = wat]wells """"""""""" #h ,*a9-saws """""""""""""""""""""""""" #aj ,cl1n]s--gra9 or se$ """""""""""""""" #h ,-b9es ,drawn """""""""""""""""""""""""""" #h ,self-propell$ """"""""""""""""""" #aj ,-put] h>dw>e & sy/ems s(tw>e """""" #aj ,cool]s--,milk """""""""""""""""""""" #h ,cr1m sep>ators """"""""""""""""""""" #h ,cultivators """""""""""""""""""""""" #h ,dams ,ce;t1 /"o1 wood1 or e>? """""""""" #a ,di7]s--,all types """""""""""""""""" #h #bhf ,,cca rates b#ej ,discs """""""""""""""""""""""""""""" #h ,docks """""""""""""""""""""""""""""" #c ,drills--,all types """"""""""""""""" #h ,dug\ts1 dikes1 & lagoons """"""""""" #f ,electric-g5]at+ equip;t 7n m ?an #ae k,w7 ,acquir$ af ,may #be1 #aigf """"""" #h ,acquir$ 2f ,may #bf1 #aigf """"""" #i ,electric motors """""""""""""""""""" #h ,elevators """""""""""""""""""""""""" #h ,5g9es--,/,n>y """""""""""""""""""""" #h ,f;es--,all types """"""""""""""""""" #f ,=age h>ve/]s ,drawn """""""""""""""""""""""""""" #h ,self-propell$ """"""""""""""""""" #aj ,grad]s--,fruit or vegeta# """""""""" #h ,gra9-dry+ equip;t """""""""""""""""" #h ,gra9 load]s """""""""""""""""""""""" #h ,gra9 sep>ators """"""""""""""""""""" #h #bhg ,,cca rates c#ej ,gra9-/orage build+ ,wood1 galvaniz$ /eel """"""""""""" #f ,o!r """""""""""""""""""""""""""""" #a ,gre5h\ses 7all except z not$ 2l7 """ #f ,gre5h\ses ( rigid frames cov]$ ) replacea# flexi# pla/ic 7? applies 6tax,n ye>s af #aihh = gre5h\ses acquir$ af #aihg7 """"""" #h ,gr9d] """""""""""""""""""""""""""""" #h ,h>;s """""""""""""""""""""""""""""" #aj ,h>r[s """""""""""""""""""""""""""""" #h ,hay bal]s & /ook]s ,drawn """""""""""""""""""""""""""" #h ,self-propell$ """"""""""""""""""" #aj ,hay load]s """"""""""""""""""""""""" #h ,ice ma*9es """"""""""""""""""""""""" #h ,9cubators """""""""""""""""""""""""" #h ,irrig,n equip;t--,ov]h1d """"""""""" #h ,irrig,n ponds """""""""""""""""""""" #f ,l1sehold 9t]e/ """""""""""""""""""" #ac #bhh ,,cca rates d#ej ,manure spr1d]s """"""""""""""""""""" #h ,milk+ ma*9es """"""""""""""""""""""" #h ,mix]s """""""""""""""""""""""""""""" #h ,m[]s """"""""""""""""""""""""""""""" #h ,nets """"""""""""""""""""""""""""""" #h ,(fice equip;t """""""""""""""""""""" #h ,\tbo>d motors """"""""""""""""""""" #aj ,pass5g] vehicles 7see ,*apt] #c7 """""""""""""" #aj or #aj.a ,pip+--,p]man5t """"""""""""""""""""" #b ,plant]s--,all types """""""""""""""" #h ,pl\1s--,pav$ or 3crete """""""""""""""""""""""" #ag ,silo fill]s """""""""""""""""""""""" #h ,silos """""""""""""""""""""""""""""" #h ,sleives ,ce;t1 /eel1 or /"o """"""""""""""" #c ,wood """"""""""""""""""""""""""""" #f ,w9d*>g]s """"""""""""""""""""""""""" #h ,w9d-5]gy 3v].n equip;t acquir$ 2f ,febru>y #bb1 #aiid """ #cd acquir$ af ,febru>y #ba1 #aiid #dc.a 99 ,y may add 6or alt] a class #c build+ af #aihg4 ,9 ? case1 "! is a limit on ! am.t y c 9clude 9 class #c4 ,! mo/ y c 9clude 9 class #c is ! l[] ( 4#ejj1jjj or #be@3p (! build+'s co/ on ,decemb] #ca1 #aihg4 ,9 class #a1 9clude any co/s y 9cur t >e ov] ? limit4 ,rates ,class #a #d@3p ,class #b #f@3p ,class #c #e@3p ,class #f #aj@3p ,class #g #ae@3p #bia ,,cca rates g#ej ,class #h #bj@3p ,class #i #be@3p ,class #aj #cj@3p ,class #aj.a #cj@3p ,class #ab #ajj@3p ,class #af #dj@3p ,class #ag #h@3p #bib ,h[ 6,calculate ! ,m&atory #ea ,9v5tory ,adju/;t 7,,mia7 ,see page #bd & ,*apt] #b = 9/ruc;ns on h[ 6-plete ! foll[+ *>ts4 ,*>t #a--,ca% co/ ( pur*as$ 9v5tory ,5t] ! am.t y pd 0! 5d (! #bjjc fiscal p]iod =! specifi$ animals y b"\3 ,fiscal p]iod """"""""""""""""" ,ca% co/ 7,a7 9 yr #bjjc fiscal p]iod """" 4#---- 7,b7 9 yr #bjjb fiscal p]iod """" 4#---- 7,c7 9 yr #bjja fiscal p]iod """" 4#---- 7,d7 9 yr #bjjj fiscal p]iod """" 4#---- 7,e7 2f yr #bjjj fiscal p]iod """ 4#---- ,5t] ! am.t y pd 0! 5d ( yr #bjjc fiscal p]iod = all o!r 9v5tory y b"\3 7,f7 9 yr #bjjc fiscal p]iod """" 4#---- 7,g7 9 yr #bjjb fiscal p]iod """" 4#---- #bic ,,mia a#ea 7,h7 9 yr #bjja fiscal p]iod """" 4#---- 7,i7 9 yr #bjjj fiscal p]iod """" 4#---- 7,j7 2f yr #bjjj fiscal p]iod """ 4#---- ,*>t #b--,value ( pur*as$ 9v5tory = specifi$ animals ,9v5tory b"\ 9 yr #bjjc fiscal p]iod 7,k7 ,5t] an am.t t is n m ?an ! am.t on l9e ;,a1 b n less ?an #gj@3p ( ? am.t4 """""""""""""" 4#---- ,9v5tory b"\ 9 yr #bjjb fiscal p]iod 7,l7 ,5t] an am.t t is n m ?an ! am.t on l9e ;,b1 b n less ?an #gj@3p (! total (! value at ! 5d ( yr #bjjb fiscal p]iod .plus any am.ts y pd 9 yr #bjjc fiscal p]iod t[>d ! pur*ase price4 """""""""""""""" 4#---- #bid ,,mia b#ea ,9v5tory b"\ 9 yr #bjja fiscal p]iod 7,m7 ,5t] an am.t t is n m ?an ! am.t on l9e ;,c1 b n less ?an #gj@3p (! total (! value at ! 5d ( yr #bjjb fiscal p]iod .plus any am.ts y pd 9 yr #bjjc fiscal p]iod t[>d ! pur*ase price4 """""""""""""""" 4#---- ,9v5tory b"\ 9 yr #bjjj fiscal p]iod 7,n7 ,5t] an am.t t is n m ?an ! am.t on l9e ;,d1 b n less ?an #gj@3p (! total (! value at ! 5d ( yr #bjjb fiscal p]iod .plus any am.ts y pd 9 yr #bjjc fiscal p]iod t[>d ! pur*ase price4 """""""""""""""" 4#---- ,9v5tory b"\ 2f yr #bjjj fiscal p]iod 7,o7 ,5t] an am.t t is n m ?an ! am.t on l9e ;,e1 b n less ?an #bie ,,mia c#ea #gj@3p (! total (! value at ! 5d ( yr #bjjb fiscal p]iod .plus any am.ts y pd 9 yr #bjjc fiscal p]iod t[>d ! pur*ase price4 """""""""""""""" 4#---- ,*>t #c--,value ( pur*as$ 9v5tory = all o!r 9v5tory ,9v5tory b"\ 9 yr #bjjc fiscal p]iod 7,p7 ,5t] ! am.t on l9e ;,f or ! fair m>ket value1 :i*"e is less4 """"""""""""""""""""""""" 4#---- ,9v5tory b"\ 9 yr #bjjb fiscal p]iod 7,q7 ,5t] ! am.t on l9e ;,g or ! fair m>ket value1 :i*"e is less4 """"""""""""""""""""""""" 4#---- #bif ,,mia d#ea ,9v5tory b"\ 9 yr #bjja fiscal p]iod 7,r7 ,5t] ! am.t on l9e ;,h or ! fair m>ket value1 :i*"e is less4 """"""""""""""""""""""""" 4#---- ,9v5tory b"\ 9 yr #bjjj fiscal p]iod 7,s7 ,5t] ! am.t on l9e ;,i or ! fair m>ket value1 :i*"e is less4 """"""""""""""""""""""""" 4#---- ,9v5tory b"\ 2f yr #bjjj fiscal p]iod 7,t7 ,5t] ! am.t on l9e ;,j or ! fair m>ket value1 :i*"e is less4 """"""""""""""""""""""""" 4#---- #big ,*>t #d--,calcul,n ( ,,mia e#ea 7,u7 ,5t] ! am.t ( yr net loss f l9e #ihii ( ,=m ,t#bjdb4 """""" 4#---- ,5t] ! value ( yr 9v5tory f ,*>t #b & ,*>t #c3 --! am.t on l9e ;,k """" 4#---- --! am.t on l9e ;,l """" 4#---- --! am.t on l9e ;,m """" 4#---- --! am.t on l9e ;,n """" 4#---- --! am.t on l9e ;,o """" 4#---- --! am.t on l9e ;,p """" 4#---- --! am.t on l9e ;,q """" 4#---- --! am.t on l9e ;,r """" 4#---- --! am.t on l9e ;,s """" 4#---- --! am.t on l9e ;,t """" 4#---- 7,v7 ,total value ( 9v5tory """""""""""""""" 4#---- 4#---- 7,w7 ,,mia--5t] ! am.t on l9e ;,u or l9e ;,v1 :i*"e is less 4#---- #bih ,,gst/,,hst ,rates #eb ,f>m gds & s]vices .taxa# at #g@3p ,,gst or #ae@3p ,,hst 9clude3 --crop du/+2 --3tract "w1 9clud+ field cle>+1 till+1 & h>ve/+ d"o 0"o f>m] on 2half ( ano!r2 --road-cle>+ s]vices2 --/ud or >tificial 9sem9,n s]vices2 --/or+ gds 7i4e41 /or+ gra9 9 a gra9 elevator72 --beeswax2 --maple sug> c&y2 --can>y se$1 lawn se$1 & fl[] se$2 --b$d+ plants1 sod1 cut fl[]s1 liv+ trees1 & firewood2 --furs1 animal hides1 & d1d animals n suita# = human 3sump;n2 --f]tiliz] 9 bulk quantities ( less ?an #ejj kilograms1 or any quantities ( soil or soil mixture :e!r or n !y 3ta9 f]tiliz]2 --gravel1 /"os1 rock1 soil1 & soil a4itives2 #bii ,,gst/,,hst ,rates a#eb --live/ock or p\ltry n norm,y rais$ z food or 6produce food = human 3sump;n 7i4e41 horses1 mules1 ra2its1 exhibi;n p\ltry1 & m9k72 & --process$ wool1 f1!rs1 & d[n4 ,_m f>m products & pur*ases1 s* z milk sales & fe$]-cattle pur*ases1 >e taxa#1 b at #j@3p4 ,we ref] 6^! z z]o-rat$ gds4 ,y d n pay ,,gst/,,hst :5 y buy ^! products & y d n *>ge ,,gst/,,hst :5 y sell !m 6yr cu/om]s4 .,z]o-rat$ f>m products >e3 --fruit & vegeta#s2 --gra9s or se$s 9 _! natural /ate1 tr1t$ = se$+ purposes or irradiat$ = /orage purposes1 & hay or silage1 or o!r fo4] crops1 :5 !y >e sold 9 quantities l>g] ?an ord9>ily (f]$ = sale 63sum]s1 .except gra9s & se$s sold 6use z fe$ = wild birds or pet food2 --fe$ sold 0a fe$lot op]ator1 z l;g z ! price is sep>ately id5tifi$ on ! 9voice or writt5 agree;t2 #cjj ,,gst/,,hst ,rates b#eb --hops1 b>ley1 flax se$1 /raw1 sug> cane1 or sug> beets2 --live/ock s* z cattle1 hogs1 p\ltry1 bees or %eep t >e rais$ or kept 6produce food1 or 6be us$ z food1 = human 3sump;n1 or 6produce wool2 --p\ltry or fi% e7s t >e produc$ = hat*+2 --ra2its1 except ^? t >e 6be sold z pets2 --f]tiliz] sold 9 9dividual bags ( at l1/ #be kg :5 ! total quant;y is at l1/ #ejj kg2 --wool t is n fur!r process$ ?an wa%$2 & --toba3o l1ves t >e n fur!r process$ ?an dri$ & sort$4 .,z]o-rat$ f>m pur*ases >e3 --l>ge f>m tractors 7#fj ,,pto horsep[] & ov]72 --pull & self-propell$ -b9es1 swa!rs1 & w9d-r[]s2 #cja ,,gst/,,hst ,rates c#eb --h1d]s = -b9es1 =age h>ve/]s1 swa!rs or w9d-r[]s2 --comb9e or =age h>ve/] pickups2 --=age h>ve/]s1 & self-propell$1 tractor-m.t$1 or pull-type me*anical fruit or vegeta# pick]s or h>ve/]s2 --m\ldbo>d & disc pl\r[s sold 9 -plete units & pulv]iz]s 7at l1/ #h feet or #b.dd metres72 #cjb ,,gst/,,hst ,rates d#eb --l& pack]s1 mul*]s1 & rot>y hoes 7at l1/ #h feet or #b.dd metres72 --airfl[ se$]s1 gra9 & se$ drills 7at l1/ #h feet or #b.dd metres71 & f>m-type r[-crop or toolb> se$]s or plant]s design$ 6se$ two or m r[s at a "t2 --m[] 3di;n]s1 hay bal]s1 hay cub]s1 hay rakes1 hay 3di;n]s1 hay cru%]s1 hay crimp]s1 hay t$d]s1 swa? turn]s1 & w9d-r[ turn]s2 --bale ?r[]s1 elevators1 or 3veyors1 silage ba7]s1 & r.d bale wrapp+ ma*9es2 --gra9 b9s or tanks ) capac;y ( #aha m#c or less 7#e1jjj bu%els72 --transporta# gra9 aug]s1 util;y aug]s1 elevators1 & transporta# 3veyors ) belts less ?an #gf.b cm 7#cj 9*es7 wide & #j.dh cm 7#c ov] #af 9*7 ?ick2 --b9 sweep or cl1n] atta*;ts = porta# gra9 aug]s2 #cjc ,,gst/,,hst ,rates e#eb --tractor-p[]$ pneumatic gra9 3veyors2 --fe$ mills1 9clud+ roll] mills & hamm] mills2 --fe$ mix]s1 gr9d]s1 gr9d] mix]s1 & tub gr9d]s2 --5silage mix]s & self-propell$ fe$ or 5silage c>ts2 --gra9 toa/]s 6use 9 live/ock fe$ produc;n2 --gra9 dry]s2 --f>m bulk milk cool]s2 -------------------------------------#ec --assem#d & fully op],nal milk+ sy/ems or 9dividual -pon5ts ( ^! sy/ems2 --automat$ & -put]iz$ f>m live/ock or p\ltry fe$+ sy/ems1 or 9dividual -pon5ts ( ^! sy/ems2 --self-propell$1 tractor-m.t$1 or pull-type agricultural wagons or trail]s design$ = (f-road h&l+ & transport+ ( gra91 =age1 live/ock #cjd ,,gst/,,hst ,rates a#ec fe$1 or f]tiliz]1 & 6be us$ at spe$s n exce$+ #dj km p] h\r2 --me*anical rock or /"o pick]s1 rock or root rakes1 & rock or root w9d- r[]s1 =age bl[]s1 silo unload]s1 & %r$d]s ) an op],nal wid? ( at l1/ #c.ff ;m or #ab feet2 --tractor-m.t$1 self-propell$1 or pull-type field spray]s ) tank capacities ( at l1/ #cjj litres or #ff gallons2 --granul> f]tiliz] or pe/icide applicators ) op],nal capac;y ( at l1/ #j.bbfe cubic metres or #h cubic feet2 --liquid box1 tank1 or flail manure spr1d]s1 & 9jec;n sy/ems = liquid manure spr1d]s2 --l1f-cutt] bees2 --complete fe$s1 supple;ts1 micro- premixes1 macro-premixes1 & m9]al fe$s o!r ?an trace m9]al salt fe$s1 labell$ 9 a3ord.e )! ,fe$s ,regul,ns1 & design$ = #cje ,,gst/,,hst ,rates b#ec ra2its or a specific type ( f>m live/ock1 fi%1 or p\ltry ord9>ily rais$ or kept = human 3sump;n or 6produce wool1 & sold 9 #bj kg or m bulk quantities or bags2 --fe$ sold 9 #bj kg or m bulk quantities or bags design$ = o/ri*es1 rh1s1 emus1 or bees2 --food process+ by-products sold 9 #bj kg or m bulk quantities or bags us$ z fe$ or z 9gr$i5ts 9 fe$ = f>m live/ock1 fi%1 or p\ltry t is ord9>ily rais$ or kept = human 3sump;n or 6produce wool1 or = ra2its1 o/ri*es1 rh1s1 emus1 or bees2 --pe/icides us$ = agricultural purposes labell$ 0! ,pe/ ,3trol ,products ,regul,ns & n design$ = dome/ic use2 --sales ( quotas 2t f>m]s = z]o-rat$ products 79clud+ dairy1 turkey1 *ick51 e7s1 & toba3o l1ves72 & #cjf ,,gst/,,hst ,rates c#ec --f>ml& r5t$ 6a regi/rant "u a %>ecropp+ >range;t ": a %>e (! produc;n t is z]o-rat$ is "p (! price 7any o!r extra pay;ts >e taxa#74 ,,gst/,,hst regi/rants c claim an .9put .tax .cr$it =! ,,gst/,,hst !y pd or [e = exp5ses us$ 6provide taxa# gds & s]vices at ! rates ( #j@3p1 #g@3p1 & #ae@3p4 ,a limit$ numb] ( gds & s]vices y pur*ase >e exempt f ,,gst/,,hst4 ,2c y d n pay ,,gst/,,hst on ^! gds & s]vices1 "! is no 9put tax cr$it 6claim4 ,examples ( .exempt gds & s]vices 9clude3 --9sur.e s]vices sold 09sur.e -panies1 ag5ts1 or brok]s2 --mo/ s]vices provid$ 0f9ancial 9/itu;ns1 s* z >rang+ loans or mortgages2 & --mo/ h1l?1 m$ical1 & d5tal s]vices4 #cjg ,,gst/,,hst ,rates d#ec ,= m 9=m,n ab ,,gst/,,hst1 see ! guide ,g5]al ,9=m,n = ,,gst/,,hst ,regi/rants4 #cjh ,9dex #ed ,page ,a3.t+ fees """""""""""""""""""""""" #ah ,a3rual me?od """"""""""""""""""""""" #e ,adv]tis+ exp5ses """""""""""""""""" #bc ,annual all[.e on eligi# capital prop]ty """""""""""""""""""""""""" #ch ,availa# = use """"""""""""""""""""" #bh ,base am.t = capital co/ all[.e """" #cb ,b$d+ """""""""""""""""""""""""""""" #ad ,b5efits """"""""""""""""""""""""""" #ai ,bre$+ fees """""""""""""""""""""""" #ad ,bre$+ h]d *>t """"""""""""""""""""" #aj ,build+ repairs """""""""""""""""""" #ad ,build+s """"""""""""""""""""""""""" #cb ,busi;s liabilities """""""""""""""" #bg ,busi;s use (a motor vehicle """"""" #bj ,busi;s-use-(-home exp5ses """"""""" #bg ,capital 3tribu;ns 9 #bjjc """"""""" #bg ,capital co/ all[.e 7,,cca7 """""""" #bg ,capital co/ all[.e 7,,cca7 rates "" #ej #cji ,9dex a#ed ,capital ga9s """""""""""""""""""""" #de ,capital ga9s deduc;n """""""""""""" #dg ,ca% me?od """""""""""""""""""""""""" #d ,,cca =! ye> """"""""""""""""""""""" #cb ,*ange 9 use ( deprecia# prop]ty """ #cd ,*ang+ yr me?od ( report+ 9come """"" #e ,cle>+ l& """""""""""""""""""""""""" #ae ,3ta9]s """""""""""""""""""""""""""" #ad ,3tract "w """""""""""""""""""" #aa1 #ae ,co/ ( a4i;ns 6deprecia# prop]ty """ #cj ,cr1m """""""""""""""""""""""""""""" #aj ,crop 9sur.e """"""""""""""""""""""" #ae ,cumulative eligi# capital 7,,cec7 a3.t """"""""""""""""""""" #ch ,cu/om "w """"""""""""""""""""" #aa1 #ae ,dairy subsidies """"""""""""""""""" #aa ,dates 6rememb] """"""""""""""""""""" #f ,def9i;ns ,adju/$ co/ base 7,,acb7 """"""""" #de ,automobile """""""""""""""""""""" #ai ,availa# = use """"""""""""""""""" #bh ,capital co/ """"""""""""""""""""" #bh #caj ,9dex b#ed ,capital co/ all[.e """""""""""""" #bg ,capital ga9 """"""""""""""""""""" #de ,capital loss """""""""""""""""""" #de ,ca% co/ """"""""""""""""""""""""" #bd ,* """"""""""""""""""""""""""""""" #dh ,deprecia# prop]ty """"""""""""""" #bh ,fair m>ket value 7,,fmv7 """""""""""""" #bd1 #bh1 #de ,9v5tory """"""""""""""""""""""""" #bd ,motor vehicle """"""""""""""""""" #ai ,non->m's l5g? transac;n """"""""" #bh ,\tlays & exp5ses """""""""""""""" #de ,pass5g] vehicle """"""""""""""""" #bj ,proce$s ( 4posi;n """"""""""""""" #cj ,pur*as$ 9v5tory """"""""""""""""" #bd ,specifi$ animals """""""""""""""" #bd ,de/roy+ live/ock """""""""""""""""" #aa ,details ( equ;y """"""""""""""""""" #bg ,details ( o!r "pn]s """"""""""""""" #bg ,4pos+ (a build+ 9 ! ye> """"""""""" #cf ,4pos+ ( f>ml& t 9cludes yr pr9cipal resid;e """"""""""""""""" #df #caa ,9dex c#ed ,dra9+ l& """""""""""""""""""""""""" #ae ,draw+s 9 #bjjc """""""""""""""""""" #bg ,e7s """"""""""""""""""""""""""""""" #aj ,electric;y exp5ses """""""""""""""" #ae ,electronic (fice equip;t """""""""" #cc ,eligi# capital exp5ditures """""""" #ch ,eligi# capital prop]ty """""""""""" #ch ,eligi# l1s+ co/s *>t = pass5g] vehicles """"""""""""""""""""""""" #bb ,ex*anges or expropri,ns ( prop]ty """""""""""""""""""""""""" #di ,exp5se records """"""""""""""""""""" #e ,fe$ """"""""""""""""""""""""""""""" #ad ,f;e repairs """"""""""""""""""""""" #ad ,f]tiliz]s """"""""""""""""""""""""" #ad ,fiscal p]iod """"""""""""""""""""""" #d ,=age crops """"""""""""""""""""""""" #i ,=ms """""""""""""""""""""""""""""""" #b ,freimoniz$ sales tax rebate """""""""""""""""""""""""""" #g ,gra9 """"""""""""""""""""""""""""""" #i ,grants """""""""""""""""""""""""""" #ce ,gre5h\se products """""""""""""""""" #i ,h1l? 9sur.e premiums """""""""""""" #af ,h1t+ fuel exp5ses """"""""""""""""" #ae ,improv+ l& """""""""""""""""""""""" #ae ,9come records """""""""""""""""""""" #e ,9come tax 9/al;t """"""""""""""""""" #f ,9du/ry code """""""""""""""""""""""" #h ,9sur.e proce$s """"""""""""""" #aa1 #cj ,9sur.e program ov]pay;t recapture """""""""""""""""""""""" #af ,9t]e/ *>t """"""""""""""""""""""""" #ba ,9t]e/ exp5ses """"""""""""""""""""" #ah ,9t]e/ on ! m"oy y borr[ =a pass5g] vehicle """""""""""""""""" #ba ,jo9t [n]%ip (a pass5g] vehicle """" #bb #cac ,9dex e#ed ,l& """"""""""""""""""""""""""" #ai1 #cj ,l1s+ co/s =a pass5g] vehicle """""" #ba ,legal fees """""""""""""""""""""""" #ah ,levell+ l& """""""""""""""""""""""" #ae ,lime """""""""""""""""""""""""""""" #ad ,live/ock pur*as$ """""""""""""""""" #ad ,live/ock sold """""""""""""""""""""" #i ,losses ,fully deducti# """""""""""""""""" #dc ,non-deducti# """""""""""""""""""" #dd ,"ply deducti# 7re/rict$ f>m loss7 """""""""""""""""""""""""" #dd ,ma*9]y exp5ses """""""""""""""""""" #ad ,m&atory 9v5tory adju/;t 9clud$ 9 #bjjb """""""""""""""""""""""""""" #bb ,m&atory 9v5tory adju/;t 9clud$ 9 #bjjc """""""""""""""""""""""""""" #bd ,m&atory 9v5tory adju/;t "w%eets """ #ea ,m$ic9e exp5ses """""""""""""""""""" #ad ,memb]%ip fees """"""""""""""""""""" #bc ,milk """""""""""""""""""""""""""""" #aj #cad ,9dex f#ed ,m ?an "o vehicle """""""""""""""""" #bb ,motor vehicle exp5ses """"""""""""" #ai ,transcrib]'s note3 7,9side back cov]7 ,non->m's l5g? transac;ns """""""""" #bh ,nurs]y products """""""""""""""""""" #i ,(fice exp5ses """"""""""""""""""""" #ah ,oilse$s """""""""""""""""""""""""""" #i ,op;nal 9v5tory adju/;t 9clud$ 9 #bjjb """""""""""""""""""""""""""" #bc ,op;nal 9v5tory adju/;t 9clud$ 9 #bjjc """""""""""""""""""""""""""" #bc ,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss7 """"""""" #bf ,o!r animal specialties """"""""""""" #i ,o!r -modities """"""""""""""""""""" #aj ,o!r crops """""""""""""""""""""""""" #i ,o!r exp5ses """"""""""""""""""""""" #bc ,o!r 9come """"""""""""""""""""""""" #ab #cae ,9dex ,o!r 9sur.e """""""""""""""""""""""" #af ,o!r pay;ts """""""""""""""""""""""" #aa ,"pn]%ips """"""""""""""""""""""""""" #f ,pass5g] vehicles """""""""""""""""" #bj ,patronage divid5ds """""""""""""""" #ab ,pay;t 9 k9d """"""""""""""""""""""" #ab ,p]sonal use """"""""""""""""""""""" #ab ,pe/icides 7h]bicides1 9secticides1 fungicides7 """"""""" #ad ,plants """""""""""""""""""""""""""" #ad ,prepd exp5ses """"""""""""""""""""" #ad ,prescrib$ dr"\ region 7,,pdr7 """""" #i ,proce$s ( 4posi;n 9 ! ye> """"""""" #cj ,program pay;ts """""""""""""""""""" #aj ,prop]ty taxes """"""""""""""""""""" #ai ,public,ns """""""""""""""""""""""""" #b ,qualifi$ f>m prop]ty & cumulative capital ga9s deduc;n "" #dg #caf ,9dex ,r1l prop]ty or eligi# capital prop]ty z qualifi$ >m prop]ty """" #dg ,rebates """"""""""""""""""""""""""" #aa ,recapture ( capital co/ all[.e 7,,cca7 """"""""""""""""""""""""" #ca ,record books """"""""""""""""""""""" #e ,r5t 7l&1 build+1 pa/ure7 """""""""" #ai ,r5tal 9come """"""""""""""""""""""" #ab ,replace;t prop]ty """"""""""""""""" #cg ,report+ "pn]%ip 9come """""""""""""" #f ,res]ves """"""""""""""""""""""""""" #aj ,re/rict$ f>m losses """""""""" #dd1 #dg ,sal>ies """"""""""""""""""""""""""" #ai ,sale ( eligi# capital prop]ty """"" #ci ,se$s """""""""""""""""""""""""""""" #ad ,sell+ capital prop]ty 9 #bjjc t y [n$ 2f #aigb """"""""""""""""""" #de ,small tools """"""""""""""""""""""" #bb ,/orage facilities = fre% fruit & vegeta#s """"""""""""""""""""""""" #cc ,/raw """""""""""""""""""""""""""""" #ad ,subscrip;ns """"""""""""""""""""""" #bc #cag ,9dex ,subsidies """"""""""""""""""""""""" #ce ,supple;ts """"""""""""""""""""""""" #ad ,surface r5tal = petroleum or natural gas explor,n """"""""""""" #ab ,teleph"o exp5ses """""""""""""""""" #bc ,t]m9al loss """"""""""""""""""""""" #ca ,"t limits """""""""""""""""""""""""" #f ,transf] ( f>m prop]ty 6a * """""""" #dh ,transf] ( f>m prop]ty 6a sp\se or -mon-law "pn] """"""""""""""""" #di ,truck+ """""""""""""""""""""""""""" #bc ,tw9e """""""""""""""""""""""""""""" #ad ,,ucc af a4i;ns & 4posi;ns """"""""" #ca ,,ucc at ! 5d (! ye> """"""""""""""" #cb ,,ucc at ! />t (! ye> """""""""""""" #bi ,valu+ yr pur*as$ 9v5tory """""""""" #bd ,vet]9>y fees """""""""""""""""""""" #ad ,wages """"""""""""""""""""""""""""" #ai ,wood """""""""""""""""""""""""""""" #ab #cah ,yr op9ion c.ts6 ,we review \r 9come tax guides & pamphlets ea* ye>4 ,if y h any -;ts or su7es;ns 6help u improve \r public,ns1 we wd l 6he> f y4 ,pl1se s5d yr -;ts to3 ,cli5t ,s]vices ,directorate ,canada ,cu/oms & ,rev5ue ,ag5cy ,lanca/] ,road ,ottawa ,,on ,k#a;,a #j;,l#e #cai #cbj ,canada ,cu/oms #a & ,rev5ue ,ag5cy ,t#bjdb--,/ate;t ( ,f>m+ ,activities ,t#bjdb ;,e 7#jc7 --,= 9=m,n on h[ 6-plete ? /ate;t1 see ! ,f>m+ ,9come guide4 ,code #e ,id5tific,n ,"n ---- ,yr ,social 9sur.e numb] ---- ,=! p]iod f3 7,ye>/,mon?/,"d7 ---- to3 7,ye>/,mon?/,"d7 ---- ,0 #bjjc yr f9al ye> ( f>m+8 ,yes ---- ,no ---- ,f>m "n ---- ,acres [n$ ---- ,f>m a4ress ---- ,acres f>m$ ---- #cba ,t#bjdb a#a ,t[n%ip or municipal;y & prov9ce ---- ,po/al code ---- ,a3.t+ me?od ,ca% ---- ,a3rual ---- ,ma9 product or s]vice ---- ,9du/ry code 7see ,*apt] #b (! ,f>m+ ,9come guide7 ---- ,"n & a4ress ( p]son or firm prep>+ ? =m ---- ,"pn]%ip fil] id5tific,n numb] ---- ,busi;s ,numb] 75t] a #ae digit numb]7 ---- ,yr p]c5tage (! "pn]%ip ----@3p ,9come ,:1t """"""""""""""""""""" 4#---- ,oats """""""""""""""""""" 4#---- ,b>ley """"""""""""""""""" 4#---- ,mix$ gra9s """""""""""""" 4#---- ,corn """""""""""""""""""" 4#---- ,canola """""""""""""""""" 4#---- ,flaxse$ """"""""""""""""" 4#---- #cbb ,t#bjdb b#a ,soya b1ns """"""""""""""" 4#---- ,o!r gra9s & oilse$s """"" 4#---- 7#icgj7 ,total gra9s & 7#idba7 ,fruit """""""""""""""""" 4#---- 7#idbb7 ,potatoes """"""""""""""" 4#---- 7#idbc7 ,vegeta#s 7exclud+ potatoes7 """"""""""""""""""""" 4#---- 7#idbd7 ,toba3o """"""""""""""""" 4#---- 7#idbj7 ,o!r crops """""""""""""" 4#---- 7#idbe7 ,gre5h\se & nurs]y products """""""""""""""""""""" 4#---- 7#idbf7 ,=age crops or se$s """"" 4#---- ,live/ock sold 7#idga7 ,cattle """"""""""""""" 4#---- 7#idgb7 ,sw9e """"""""""""""""" 4#---- 7#idgc7 ,p\ltry """"""""""""""" 4#---- 7#idgd7 ,%eep & lambs """"""""" 4#---- 7#idgj7 ,o!r animal specialties 4#---- 7#idgf7 ,milk & cr1m 7exclud+ dairy subsidies7 """""""""""""" 4#---- 7#idgg7 ,e7s """""""""""""""""""" 4#---- 7#iebj7 ,o!r -modities """""""""" 4#---- #cbc ,t#bjdb c#a ,program pay;ts 7#ieda7 ,dairy subsidies """""" 4#---- 7#iedb7 ,crop 9sur.e """""""""" 4#---- 7#iedj7 ,o!r pay;ts """"""""""" 4#---- 7#iegj7 ,rebates """""""""""""""" 4#---- 7#ifja7 ,cu/om or 3tract "w1 & ma*9e r5tals """""""""""""""""" 4#---- 7#ifjd7 ,9sur.e proce$s """"""""" 4#---- 7#ifje7 ,patronage divid5ds """"" 4#---- 7#ifjj7 ,o!r 9come 7specify7 """" 4#---- 7#ifei7 ,gross 9come--total ( l9es #icgj 6#ifjj 75t] on l9e #afh ( yr 9come tax return7 """ 4#---- --------------------------------------#b 7a7 ,gross 9come 7f l9e #ifei on page #a7 """"""""""""" 4#---- ,exp5ses 75t] busi;s por;n only7 7#iffa7 ,3ta9]s & tw9e """ 4#---- 7#iffb7 ,f]tiliz]s & lime 4#---- 7#iffc7 ,pe/icides 7h]bicides1 9secticides1 fungicides7 """""""""""" 4#---- #cbd ,t#bjdb a#b 7#iffd7 ,se$s & plants """ 4#---- 7#igaa7 ,fe$1 supple;ts1 /raw1 & b$d+ """"""""""" 4#---- 7#igab7 ,live/ock pur*as$ 4#---- 7#igac7 ,vet]9>y fees1 m$ic9e1 & bre$+ fees """ 4#---- ,ma*9]y exp5ses 7#igfj7 ,repairs1 lic;es1 & 9sur.e """"" 4#---- 7#igfd7 ,gasol9e1 diesel fuel1 & oil """""""""" 4#---- 7#igie7 ,build+ & f;e repairs """""""""""""""" 4#---- 7#igif7 ,cle>+1 levell+1 & dra9+ l& """"""""""""""" 4#---- 7#igig7 ,crop 9sur.e """"" 4#---- 7#igih7 ,cu/om or 3tract "w1 & ma*9]y r5tal """"" 4#---- 7#igii7 ,electric;y """""" 4#---- 7#ihjb7 ,h1t+ fuel """"""" 4#---- 7#ihjc7 ,9sur.e program ov]pay;t recapture """"" 4#---- 7#ihjd7 ,o!r 9sur.e """""" 4#---- 7#ihje7 ,9t]e/ """"""""""" 4#---- #cbe ,t#bjdb b#b 7#ihjh7 ,(fice exp5ses """ 4#---- 7#ihji7 ,legal & a3.t+ fees """"""""""""""""""" 4#---- 7#ihaj7 ,prop]ty taxes """ 4#---- 7#ihaa7 ,r5t 7l&1 build+s1 pa/ure7 """""""""""""""" 4#---- 7#ihad7 ,sal>ies1 wages1 & b5efits 79clud+ employ]'s 3tribu;ns7 """ 4#---- 7#ihai7 ,motor vehicle exp5ses 7n 9clud+ ,,cca7 4#---- 7#ihbj7 ,small tools """"" 4#---- 7#iicg7 ,m&atory 9v5tory adju/;t 9clud$ 9 #bjjb 4#---- 7#iich7 ,op;nal 9v5tory adju/;t 9clud$ 9 #bjjb 4#---- ,o!r exp5ses ---- 4#---- ---- """""""""""" 4#---- 7#igij7 ,total o!r exp5ses """"""""" 4#---- ,subtotal ( all exp5ses "" 4#---- 7#iice7 ,all[.e on eligi# capital prop]ty """""""" 4#---- #cbf ,t#bjdb c#b 7#iicf7 ,capital co/ all[.e 7f ,>ea ;,e on page #c7 """"""""""""""" 4#---- 7b7 & 7#ihih7 ,total f>m exp5ses 7total (! abv ?ree l9es7 """""""""""""""""""" 4#---- 7#ihii7 ,net 9come 7loss7 2f adju/;ts 7l9e ;a m9us l9e ;b7 """"""""""""""""""""""" 4#---- 7#iida7 ,op;nal 9v5tory adju/;t 9clud$ 9 #bjjc """""""" 4#---- 7#iidb7 ,m&atory 9v5tory adju/;t 9clud$ 9 #bjjc """""""" 4#---- 7c7 ,total (! abv ?ree l9es """""""""""""""""""""""""" 4#---- 7d7 ,yr %>e (! am.t on l9e ;c """""""""""""""""""""""""""" 4#---- 7e7 7#iidc7 ,m9us--,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss7 f ! *>t on page #d """""""""""""""""""""""""""" 4#---- #cbg ,t#bjdb d#b 7f7 ,net 9come 7loss7 af adju/;ts 7l9e ;d m9us l9e ;e7 """"""""""""""""""""""" 4#---- 7#iide7 ,m9us--,busi;s- use-(-home exp5ses 7f ! *>t on page #d7 """"""""""""""" 4#---- 7#iidf7 ,yr net 9come 7loss7 7l9e ;f m9us l9e #iide7 75t] on l9e #ada ( yr 9come tax return7 """""""" 4#---- ,>ea ;,a--,details ( equip;t a4i;ns 9 ! ye> ,transcrib]'s note3 7,! *>t 0 set-up 9 a column> =mat4 ,x applies 6,>1s ;,a to ;,e47 7#a7 ,class numb] ---- 7#b7 ,prop]ty details ---- 7#c7 ,total co/ 4#---- 7#d7 ,p]sonal "p 7if applica#7 4#---- 7#e7 ,busi;s "p 7column #c m9us column #d7 4#---- #cbh ,t#bjdb e#b 7#iibe7 ,total equip;t a4i;ns 9 ! ye> 7add all am.ts 9 column #e7 4#---- --------------------------------------#c ,>ea ;,b--,details ( build+ a4i;ns 9 ! ye> 7#a7 ,class numb] ---- 7#b7 ,prop]ty details ---- 7#c7 ,total co/ 4#---- 7#d7 ,p]sonal "p 7if applica#7 4#---- 7#e7 ,busi;s "p 7column #c m9us column #d7 4#---- 7#iibg7 ,total build+ a4i;ns 9 ! ye> 7add all am.ts 9 column #e7 4#---- ,>ea ;,c--,details ( equip;t 4posi;ns 9 ! ye> 7#a7 ,class numb] ---- 7#b7 ,prop]ty details ---- 7#c7 ,proce$s ( 4posi;n 7%d n 2 m ?an ! capital co/7 4#---- #cbi ,t#bjdb a#c 7#d7 ,p]sonal "p 7if applica#7 4#---- 7#e7 ,busi;s "p 7column #c m9us column #d7 4#---- 7#iibf7 ,total equip;t 4posi;ns 9 ! ye> 7add all am.ts 9 column #e7 4#---- ,note3 ,if y 4pos$ ( prop]ty f yr f>m+ busi;s 9 ! ye>1 see ,*apt] #c (! ,f>m+ ,9come guide = 9=m,n ab yr proce$s ( 4posi;n4 ,>ea ;,d--,details ( build+ 4posi;ns 9 ! ye> 7#a7 ,class numb] ---- 7#b7 ,prop]ty details ---- 7#c7 ,proce$s ( 4posi;n 7%d n 2 m ?an ! capital co/7 4#---- 7#d7 ,p]sonal "p 7if applica#7 4#---- 7#e7 ,busi;s "p 7column #c m9us column #d7 4#---- 7#iibh7 ,total build+ 4posi;ns 9 ! ye> 7add all am.ts 9 column #e7 4#---- #ccj ,t#bjdb b#c ,note3 ,if y 4pos$ ( prop]ty f yr f>m+ busi;s 9 ! ye>1 see ,*apt] #c 9 ! ,f>m+ ,9come guide = 9=m,n ab yr proce$s ( 4posi;n4 ,>ea ;,e--,calcul,n ( capital co/ all[.e 7,,cca7 ,"p ,,xi prop]ties 7acquir$ af #aiga7 7#a7 ,class numb] ---- 7#b7 ,undepreciat$ capital co/ 7,,ucc7 at ! />t (! ye> 4#---- 7#c7 ,co/ ( a4i;ns 9 ! ye> 7see ,>ea ;,a on page #b & ,>ea ;,b abv7 4#---- 7#d7 ,proce$s ( 4posi;ns 9 ! ye> 7see ,>1s ;,c & ;,d abv7 4#---- 7#e7 99 ,,ucc af a4i;ns & 4posi;ns 7,column #b plus column #c m9us column #d7 4#---- #cca ,t#bjdb c#c 7#f7 ,adju/;t = curr5t-ye> a4i;ns 7"o- half multipli$ by 7column #c m9us column #d7 if negative1 5t] 8#j07 4#---- 7#g7 ,base am.t = ,,cca 7,column #e m9us column #f7 4#---- 7#h7 ,rate 7@3p7 ---- 7#i7 ,,cca =! ye> 7,column #g multipli$ 0column #h1 or an adju/$ am.t7 4#---- 7;i7 ,total ,,cca on ,"p ,,xi prop]ties --,5t] ? am.t1 .m9us any ,,cca on busi;s-use-(-home exp5ses1 on l9e #iicf on page #b ( ? =m4 ,if y acquir$ f>m+ prop]ty 2f #aigb1 see al l9e ;ii 2l4 7add all am.ts 9 column #i7 4#---- 7#aj7 ,,ucc at ! 5d (! ye> 7,column #e m9us column #i7 4#---- 99 ,if y h a negative am.t 9 ? column1 add x 69come z a recapture on l9e #ifjj1 8,o!r 9come01 on page #a4 ,if "! is no prop]ty left 9 ! class & "! is a positive am.t 9 ! column1 deduct ! am.t f 9come z a t]m9al loss #ccb ,t#bjdb d#c on l9e #igij1 8,total o!r exp5ses01 on page #b4 ,recapture & t]m9al loss d n apply 6a ,class #aj.a prop]ty4 ,= m 9=m,n1 see ,*apt] #c (! ,f>m+ ,9come guide4 ,"p ,,xvii prop]ties 7acquir$ 2f #aigb7 ,transcrib]'s ,note3 7,! foll[+ *>t 0 set-up 9 a column> =mat47 7#a7 ,ye> acquir$ ---- 7#b7 ,k9d ( prop]ty ---- 7#c7 ,mon? ( 4posi;n ---- 7#d7 ,co/ 7busi;s "p7 ---- 7#e7 ,rate 7@3p7 ---- 7#f7 ,,cca = ? ye> 4#---- 7;ii7 ,total ,,cca on ,"p ,,xvii prop]ties 7add all am.ts 9 column #f7 4#---- 7#g7 ,total ,,cca = ? & previ\s ye>s7 4#---- #ccc ,t#bjdb e#c ,5t] ! total ( l9es ;i & ;ii on l9e #iicf on page #b4 --------------------------------------#d ,>ea ;,f--,details ( l& a4i;ns & 4posi;ns 9 ! ye> ,note3 ,y _c claim capital co/ all[.e on l&4 ,see ,*apt] #c 9 ! ,f>m+ ,9come guide = m 9=m,n4 7#iibc7 ,total co/ ( all l& a4i;ns 9 ! ye> """""""""""""""" 4#---- 7#iibd7 ,total proce$s f all l& 4posi;ns 9 ! ye> """""""""""""" 4#---- ,>ea ;,g--,details ( quota a4i;ns & 4posi;ns 9 ! ye> ,note3 ,quotas >e eligi# capital prop]ty4 ,see ,*apt] #d 9 ! ,f>m+ ,9come guide = m 9=m,n4 #ccd ,t#bjdb a#d 7#iibi7 ,total co/ ( all quota a4i;ns 9 ! ye> """""""""""""""" 4#---- 7#iicj7 ,total proce$s f all quota 4posi;ns 9 ! ye> """""""" 4#---- ,o!r am.ts deducti# f yr %>e ( net "pn]%ip 9come 7loss7 ,claim exp5ses y 9curr$ t y did n 9clude 9 ! "pn]%ip /ate;t ( 9come & exp5ses1 &= : ! "pn]%ip did n reimburse y4 ---- """""""""""""""""""""""""""" 4#---- ---- """""""""""""""""""""""""""" 4#---- ---- """""""""""""""""""""""""""" 4#---- ,total 75t] ? am.t on l9e ;e on page #b7 """""""""""""""""""""" 4#---- #cce ,calcul,n ( busi;s-use-(- b#d home exp5ses ,h1t """""""""""""""""""""""""""" 4#---- ,electric;y """"""""""""""""""""" 4#---- ,9sur.e """"""""""""""""""""""""" 4#---- ,ma9t5.e """""""""""""""""""""""" 4#---- ,mortgage 9t]e/ """"""""""""""""" 4#---- ,prop]ty taxes """""""""""""""""" 4#---- ,o!r exp5ses """""""""""""""""""" 4#---- .,subtotal """""""""""""""""""""" 4#---- .,m9us--,p]sonal use por;n """""" 4#---- .,subtotal """""""""""""""""""""" 4#---- .,plus --,capital co/ all[.e 7busi;s por;n only7 """"""""""""""""" 4#---- --,am.t c>ri$ =w>d f previ\s ye> """"""""""""""""""""""""" 4#---- 7#a7 .,subtotal """"""""""""""""" 4#---- 7#b7 .,m9us--,net 9come 7loss7 af adju/;ts f l9e ;f on page #b 7if negative1 5t] 8#j07 """"""" 4#---- #ccf ,t#bjdb c#d ,busi;s-use-(-home exp5ses availa# = c>ry=w>d 7l9e #a .m9us l9e #b7--if negative1 5t] 8#j0 """""""""""""""""""""""""" 4#---- .,all[a# .claim 7! less] ( am.ts #a or #b abv7--5t] ? am.t on l9e #iide on page #b """""""""" 4#---- ,details ( equ;y 7#iica7 ,total busi;s liabilities 4#---- 7#iicb7 ,draw+s 9 #bjjc """"""""" 4#---- 7#iicc7 ,capital 3tribu;ns 9 #bjjc """"""""""""""""""""""""" 4#---- ,details ( o!r "pn]s ,transcrib]'s note3 7,5t] z _m l9es z nec =! foll[+47 ,"n & a4ress ---- ,%>e ( net 9come or 7loss7 4#---- ,p]c5tage ( "pn]%ip ----@3p #ccg