COMMERCE 4SC3 Lecture 11: continuation of chapter 16
20 Mar 2019
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Can transfer certain type of assets and can pick any number between cost, fair value and. Can defer the capital gains but have to fill out the special form. Go back to chapter 10 where we looked at tax rates. Person >200k income on return, means that any additional salary, pension or interest is subject to 50% tax. Any eligible dividends that you gross up at 16%, have a 42% tax and if you gross up at 38%, have tax rate at about 37%. Capital gain is about 25%; could be 0 if you have capital gain deduction. If we talk about putting extra k of income, would pay lest tax if it was categorized as capital gain because it"s at 25%. People try to convert something that"s actually dividend into capital gain and cra will try to switch it back to appear as dividend.
