Calculation of net income
The calculation of net
income under Article 3 of the Law of the income tax works as follows:
Section 3a includes income from charges and employment (salary,
bonuses, commissions, tips), income from business (sales, fees,
benefits), property income (rental income, interest, dividends) and
other income (pensions, employment insurance benefits).
Section 3b of the calculation of net income includes taxable capital gain (inclusion rate = 50% tax) less the allowable capital loss (inclusion rate = 50% taxable). The capital gain is a property that was not purchased for the purpose of resale.
Other revenues that do not fit in the calculation of net income is not taxable (lottery, inheritance, life insurance, scholarship ...).
In section 3c of the calculation of net income, the inclusion of other deductions must be made. These are deductions that do not relate to any particular type of goods such as RRSPs, moving expenses, child care expenses.
Finally, section 3d of the calculation of net income should include the losses and job losses to businesses, property losses and losses deductible as a business investment. All these tools serve to make the calculation of net income.
Section 3b of the calculation of net income includes taxable capital gain (inclusion rate = 50% tax) less the allowable capital loss (inclusion rate = 50% taxable). The capital gain is a property that was not purchased for the purpose of resale.
Other revenues that do not fit in the calculation of net income is not taxable (lottery, inheritance, life insurance, scholarship ...).
In section 3c of the calculation of net income, the inclusion of other deductions must be made. These are deductions that do not relate to any particular type of goods such as RRSPs, moving expenses, child care expenses.
Finally, section 3d of the calculation of net income should include the losses and job losses to businesses, property losses and losses deductible as a business investment. All these tools serve to make the calculation of net income.