BU357 Study Guide - Deferred Income, Air Canada, Real Estate Transfer Tax
Document Summary
Other sources of income includes miscellaneous taxable amounts not attributable to sources discussed such as employment income, property income, and business income. Fees/expenses for objection or appeal of a tax assessment. Investments deposited into an rrsp account are not taxed until they are withdrawn from the account. Contribution up to the lessor limit of ,970 or 18% of earned income (2012) is deductible. This amount must be net of any prior year pension adjustment (pa). Any unused contribution room can be carried forward into future years. Any contributions exceeding the annual limit are subject to a penalty of 1% per month on the excess amount. A taxpayer is permitted to over-contribute up to a limit of ,000 in excess of the taxpayers contribution limit without paying any penalty. Over-contribution is not deductible against any source of income. An individual may contribute all or part of his/her contribution limit to the rrsp of a spouse.
