1. Capital Gain (Loss) on Disposition
   1. Add: Proceeds of Disposition
      1. Less: Adjusted Cost Base
      2. Less: Expenses of Disposition
      3. Calculate
         1. Capital Gain (Loss) CG/ CL
            1. Add: Reserves
            2. Less: Exemptions
            3. Calculate
            4. If Positive
            5. Taxable Capital Gain (TCG)
            6. Division B Income Inclusion
            7. If Negative
            8. Allowable Capital Loss (ACL)
            9. Not Deductible Against other Division B Income
2. BU357
   1. Liability for Tax
      1. S2 Administration of Tax in Canada
         1. Individuals
         2. Corporations
         3. Liability for Tax in Cnaada
            1. S3 Computation of Income for Tax Purposes
            2. a. Non Capital Sources
            3. Sub a: Employment
            4. Sub b: Business
            5. Sub d: Other Income
            6. b Capital Sources
            7. c Other Deductions
            8. Non Capital Sources of Losses
            9. Income for Tax Purposes
            10. Computation of Taxable Income
            11. S110 Adjustments
            12. S111 Loss Carryovers
            13. Taxable Income
            14. Computation of Tax Payable
            15. Total Federal Income Tax on Taxable Income
            16. Subtract: Total non-refundable Tax Credits
            17. Subtract: Federal Dividend Tax Credit
            18. Basic Federal Tax
            19. Subtract: Federal Foreign Tax Credit
            20. Federal Tax
            21. Subtratct: Federal Political Contributions
            22. Subtract: Other Federal Tax Credits
            23. Net Federal Tax
            24. Add: Tax on OAS Benefits
            25. Total Federal Tax
            26. Add: Provincial Tax
            27. Add: Provincial Surtax
            28. Total Payable
            29. Subtract: Total Income Tax Deducted at Source
            30. Subtract: Federal refundable Tax credits
            31. Subtract: Tax paid by Instalments
            32. Subtract: Provincial Refunadable Tax Credits
            33. Balance Payable or refundable
3. Income Tax
   1. Liability for Tax
      1. Residency Issues
         1. Individuals
         2. Corporations
   2. Computation of Income
      1. Income or Loss from an office or Employment
         1. Employee or Self Employed
         2. S5: Basic Rules
         3. S6-7: Inclusions
         4. S8: Deductions
      2. Income or Loss from a Business or Property
         1. Basic Rules
            1. S9 Income (loss)
         2. Inclusions
            1. S12 Income Inclusions
            2. (1) Income Inclusions
            3. (c) Interest
            4. Corporations
            5. Individuals
            6. Anniversity Date
            7. (j) Dividends from Resident Corporations
            8. Take tax at corporate level Gross up dividends to an estimated pre-corporate tax amount Include higher amount in Income Issue Dividend Tax credit to make up for it
            9. Double Taxation Problem
            10. Dividends come from After Tax Income of Corp
            11. Taxing them again upon transfer is would tax them again
            12. Solution
            13. Low Rate Corporations
            14. 18% Gross Up
            15. 11% Dividend Tax Credit
            16. High Rate Corporations
            17. 38% Gross Up
            18. 15% Dividend Tax Credit
            19. (k) Foreign Corporations, Trusts, and Investment Entities
            20. Capital Gain or Income Receipt
            21. Production or use of Property
            22. Royalty
            23. Rental
            24. (3) Interest Income (Corporations)
            25. (4) Interest from Investment Contract (Individuals)
            26. S13 Rules related to CCA
            27. S15 Rules for Shareholder Benefits
         3. Deductions
            1. S18 General Limitations
            2. S20 Deductions Permitted
         4. Ceasing to Carry on Business
         5. Special Cases
      3. Taxable Capital Gains & Allowable Capital Losses
         1. S37
         2. S40: General Rules
         3. S41: LPP
         4. S45: Change in Use
         5. S46: PUP
         6. Other
         7. S52 Cost of Certain Property
         8. S54.1: Exception - Principle Residency
         9. S55
      4. Other Sources of Income
         1. S56: General
            1. (4) Transfer of rights to Income
            2. .1 Interest Free or Low interest Loans
         2. S57: Certain Pensions
         3. S58: Government Annuities
         4. S59: Resource Property
      5. Deductions in Computing Income
         1. S60
            1. 60-.03: Other Deductions
            2. .1: Support
            3. .2: Refund for AVCs
         2. S61-.1: IAAC's
         3. S62: Moving Expenses
         4. S63: Childcare Expenses
      6. Rules Relating to the Computation of Income
      7. Amounts not included in Computing Income
         1. S81: Amounts not Included in Income
      8. Corporations resident in Canada and their Shareholders
      9. Shareholders of Corporations not Resident in Canada
      10. Partnerships & their Members
      11. Trusts & their Beneficiaries
   3. Computation of Taxable Income
      1. S110: Adjustments
         1. (1)(d)/(d.1): Stock Options
            1. Non-CCPC
            2. S110(1)(d): FMV < option price to receive 50% reduction
            3. CCPC
            4. S110(1)(d): FMV < option price to receive 50% reduction
            5. S110(1)(d.1): ESO's for CCPC's
            6. Either Or
         2. (1)(f): Social Assistance Receipts
            1. (i) Exempt by virtue of a tax treaty
            2. (ii) Worker's Comp Guaranteed Income Supplement Social Assistance Payments
         3. (1)(j): Home Relocations
            1. (i) Interest on whole of loan as computed using 'lesser of' rule MINUS interest paid during that year AND 30 days after
            2. (ii) Interest on $25k loan using 'lesser of' rule, but restricted to max 5 years
            3. (iii) total benefits from all low-interest or no interest loans
            4. Lesser of
         4. .6: Capital Gains Exemption
            1. $813,600 of CG can be sheltered on:
            2. Qualified Small Business Corporation Shares (QSBCS)
            3. Qualified Farm Property
            4. Qualified Fishing Property
      2. S111: Loss Carryovers
         1. Streaming/ Timing Rules
            1. (1)(a): Non-Capital Loss Carryovers
            2. (1)(b): Net Capital Loss Carryovers
            3. CFWD: Indefinite CBWD: 3 Years
            4. (8): Farm Loss
      3. S114: Part Year Residents
   4. Taxable income earned in Canada by Non Residents
      1. S115: Non-resident's taxable income in Canada
   5. Deductions in Computing Income (Computation of tax)
      1. Individuals
         1. Individuals
            1. S117: Tax Rates
            2. S118: Personal Credits
            3. Refundable
            4. Non-refundable
            5. Base Amount * 15%
            6. Exceptions
            7. Charitable Gifts Credit
            8. Federal Dividend Tax Credit
            9. Deduction vs. Credit
            10. S120: Income from Outside Canada
            11. .2: Minimum Tax Carryover
            12. .4: Tax on Split Income
            13. S121: Dividend Tax Credit
            14. S122: Tax on inter vivos trust
            15. .1: SIFT Trust
            16. .3: Employment Outside Canada
            17. .5: GST Credit
            18. .51: Refundable medical expense supplement
         2. Child Tax Benefit
            1. S122.6-.63: Child Tax Benefit
         3. Working Income Tax Benefit
            1. S122.7-71: Working Income Tax Credit
      2. Corporations
      3. All Taxpayers
         1. S126: Foreign Tax Credit
         2. S127.1-.41: Other Tax Credits
      4. Minimum Tax
         1. Subtopic 1
         2. Subtopic 2
         3. Subtopic 3
   6. Rules Relating to Computation of Income (Minimum Tax)
      1. S67 General Limitations re Expenses
      2. S73-75.1 Attribution
         1. The Reason for Attribution
            1. Beginning
            2. Subtopic 1
            3. Subtopic 2
            4. Subtopic 3
            5. Ending
            6. Transfer or owner dies
            7. Transferor becomes a Non-resident
            8. Spousal Relationship ends
            9. Minor turns 18
            10. Cash/ Asset is returned
         2. S73 Inter vivos transfers by Individuals (Spousal Rollover)
         3. S74 Transfers to Spouse
            1. .1 Transfer & loans to spouse or common law (Income or Loss arising from transfer)
            2. (1) Loans to Spouse
            3. (2) Minors
            4. Must be done at FMV
            5. Children, Step Childrend
            6. Nieces & Nephews
            7. Avoiding Attribution
            8. .5 (1)
            9. FMV consideration must be received by the vendor
            10. If part of consideration is debt, then interest must be charged at prescribed rate and always paid by January 30th
            11. If to spouse or common-law, then they must elect out of the spousal rollover in Subsection 73(1)
            12. .5 (3)
            13. Subtopic 1
            14. Subtopic 2
            15. Subtopic 3
            16. .2 Gains or Losses deemed that of lendor or transferor (Capital Gain or Loss arising from transfer)
      3. S80.4-80.5 Deemed Interest
         1. Subtopic 1
         2. Subtopic 2
         3. Subtopic 3
   7. Deferred & Other Special Income Arrangements
   8. Exemptions
   9. Returns, Assessments, payment & appeals
   10. Appeals to the Tax Court of Canada & Federal Court of Appeal
   11. Ordering of Div C. Deductions
       1. S110: Other Deductions
       2. S110.2: Lump-Sum Payments
       3. S111: Loss Carryovers (oldest first)
       4. S110.6: Capital Gains Deduction
       5. S110.7: Residing in prescribed zone
   12. Summary of Income Tax Calculation
4. Main Topic 2
5. Main Topic 3
6. Main Topic 4
7. Main Topic 5
8. Main Topic 6