Most amounts you received in 1995 are taxable and you have to include them in income. This includes amounts from employment, pensions, self-employment, and other sources.However, some amounts you may have received in 1995 are not taxed. Do not include the following in your income:

• your GST credit and Child Tax Benefit payments;
• compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
• any lottery winnings or an inheritance;
• any veterans' disability and dependants' pension payments;
• your war veterans' allowance; or
• allowances for newborn children received from the Régie des rentes du Québec, or Quebec family allowances.

Note

Earnings on any of the above amounts are taxable (such as interest you earn when you invest lottery winnings).

Line 101 - Employment income

Enter the total of amounts shown in box 14 of all your T4 slips. If you have not received your T4 slip by late March, or if you have any questions about an amount on a slip, contact your employer.

If you have employment expenses, see line 229 for details.

Tax Tip
Your contributions to the Canada or Quebec Pension Plans (boxes 16 or 17 of your T4 slips) determine the amount of benefits you will receive under either of these plans. If there are no contributions in boxes 16 or 17 of your T4 slips, or if you have any questions about the amount of your contributions, contact your employer.

Line 102 - Commissions

Enter the total commissions you received as an employee from box 42 on all your T4 slips. This amount is already included in your income on line 101, so do not add it again when you calculate your total income on line 150.

If you have commission expenses, see line 229 for details.

If you are a self-employed commission salesperson, get the income tax guide called Business and Professional Income to determine how to report your commission income and claim your expenses.

Line 104 - Other employment income

Enter your total employment income not reported on a T4 slip, such as tips, gratuities, directors' fees, and foreign employment income.

Tax Tip
You may be able to contribute to the Canada or Quebec Pension Plan for tips and gratuities you received. See line 308 for details.

Also, enter on this line the total of:

• royalties from a work or invention of yours;
• amounts you received under a supplementary unemployment benefit plan (a guaranteed annual wage plan);
• amounts allocated to you under a profit-sharing plan (box 35 of your T4PS slip);
• net research grants;
• the taxable part of income-maintenance insurance-plan payments, such as income from a wage-loss replacement plan; and
• certain goods and services tax (GST) rebates and Quebec sales tax (QST) rebates.

Research grants - Subtract your expenses from any research grant you received and enter the net amount on this line. Your expenses cannot be more than the grant you received. Attach to your return a list of your expenses. For details, get Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, and Research Grants.

Wage-loss replacement plans - Box 28 of your T4A slip shows the payments you received from these plans. There should also be a note on the slip identifying them. You may not have to report the full amount on your tax return. You can reduce the payments you received by the contributions you made to the wage-loss replacement plan after 1967, if you did not claim the contributions on a previous year's return. For more information, get Interpretation Bulletin IT-428, Wage Loss Replacement Plans.

GST and QST rebates - If you are an employee who received a GST or QST rebate in 1995:

• include on line 104 the rebate you received for employment expenses you paid and deducted; and
• get the income tax guide called Employment Expenses for details on how to report a rebate for a vehicle or musical instrument you bought.

Line 113 - Old Age Security pension

Enter your net Old Age Security (OAS) pension from box 18 of your T4A(OAS) slip. If you also received a T4A(P) slip with an amount in box 24, add this amount to the amount in box 18 on your T4A(OAS) slip. Then enter the total on line 113.

Do not enter the amount in box 21 of your T4A(OAS) slip on line 113. For details on how to report this income, see line 146.

If you do not have your T4A(OAS) or T4A(P) slip, contact the nearest Income Security Programs office of Human Resources Development Canada.

Note

If your net income before adjustments (line 234) is more than $53,215, you may have to repay all or a part of your OAS benefits. See line 235 for details.

Line 114 - Canada or Quebec Pension Plan benefits

Enter on line 114 the total Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) benefits shown in box 20 of your T4A(P) slip. The amount in box 20 is the total of the amounts in boxes 14 to 18. If your T4A(P) slip has an amount in box 16, 17, or 18, read the part of this section that applies to you.

CPP or QPP disability benefit (box 16)

Enter on line 152, located to the left of line 114, the amount of your CPP or QPP disability benefits from box 16. This amount is already included in your income on line 114, so do not add it again when you calculate your total income on line 150.

If you received a lump-sum CPP or QPP disability benefit in 1995, you have to enter the full amount on line 114. The benefit or part of the benefit you received may be for a year or years before 1995. If the part that relates to a previous year or years is $300 or more, it may be more beneficial for you to have this income taxed as if you had received it in the previous year or years. We will automatically apply the tax calculation that benefits you most. We will tell you the results on your Notice of Assessment or Notice of Reassessment.

CPP or QPP child benefit (box 17)

Report a child benefit only if you received it because you were the child of a deceased or disabled contributor. Any benefits paid for your children are their income, even if you received the payment.

CPP or QPP death benefit (box 18)

If you receive a CPP or QPP death benefit, you can choose to report it either on line 114 of your own return, or on a Trust Income Tax and Information Return for the estate of the deceased person. The taxes payable on a CPP or QPP death benefit may be different depending on which return you use. For more information, get the income tax guide called T3 Guide and Trust Return.

Line 115 - Other pensions or superannuation

Enter on this line any other pensions or superannuation you received (box 16 on T4A slips and box 31 on T3 slips). If you received any lump-sum income (box 18 of your T4A slip or box 22 of your T3 slip), report it on line 130.

You may also have to report on this line other amounts that you received. Read the parts of this section that correspond to the type of income you have. The section is divided as follows: Annuity payments and Pensions from a foreign country.

Tax Tip
If you have to report your pension or annuity payments on line 115, you may be able to claim the pension income amount. See line 314 for details.

Ann uity payments

You may have received annuity payments from:

• general annuities or income-averaging annuity contracts (box 19 on T5 slips and box 24 on T4A slips);
• deferred profit-sharing plans (box 28 on T4A slips); or
• registered retirement income funds (box 16 and box 20 on T4RIF slips). If there is also an amount in box 24 of your T4RIF slip, get the income tax guide called RRSP and Other Registered Plans for Retirement.

Report your annuity payments as follows:

• If you were 65 or older on December 31, 1995, enter them on line 115.
• If you received them at any age because your spouse died, enter them on line 115.
• In all other cases, enter them on line 130 unless the payments are shown in box 19 of your T5 slip. If they appear in box 19, enter them on line 121.

Pens ions from a foreign country

Report on line 115 the total amount of your foreign pension income. Report this income in Canadian dollars. Convert it using the exchange rate in effect on the day you received it. If the pension was paid at various times throughout the year, you can contact us to get an average annual rate.

Attach a note identifying the type of pension you received and where it came from.

You may have to report amounts you received from custodial, trusteed, and annuity United States individual retirement accounts (IRAs). For details, contact us.

Tax Tip

You can claim a deduction on line 256 for the part of your foreign pension income that is tax-free under a tax treaty. If you do not know whether any part of your foreign pension is tax-free in Canada, contact us.

United States social security - Enter on line 115 the full amount of your social security in Canadian dollars. However, you can claim a deduction on line 256 for one-half of this amount. Benefits paid for your children are their income, even if you received the payments.

Note

Under proposed changes to the Canada-United States Tax Convention, starting in 1996, you will no longer be taxed in Canada on your U.S. social security benefits. However, these payments may be subject to U.S. withholding tax. For more information, contact us.

Line 119 - Unemployment Insurance benefits

Enter on line 119 the total Unemployment Insurance (UI) benefits shown in box 14 of your T4U slip.

Human Resources Development Canada may have sent you more benefits than you should have received. If this is the case and you repaid the excess benefits to them, you may be entitled to a deduction. See line 232 for details.

Note

If your net income before adjustments (line 234) is more than $63,570, you may have to repay some of the UI benefits you received. See line 235 for details.

Line 120 - Taxable amount of dividends from taxable Canadian corporations

Enter on line 120 the taxable amount of all dividends from taxable Canadian corporations, even if you did not receive an information slip.

If you received foreign dividends, see the section called "Foreign interest and dividend income" at line 121 for details on how to report this income.

How to report

Enter on Part I of Schedule 4 the taxable amount of dividends from taxable Canadian corporations. You will find these amounts in box 11 on T5 slips, box 31 on T4PS slips, box 32 on T3 slips, and in the details area on T5013 slips.

You may not have received an information slip showing the taxable dividends you received from taxable Canadian corporations. To calculate the taxable amount, multiply the dividends you actually received by 125%.

Taxable dividends received from taxable Canadian corporations qualify for the federal dividend tax credit. This credit reduces the amount of tax you owe. Complete Schedule 1 to claim this credit. See line 502 for details.

Tax Tip

In some cases, it may be better for you to report all the taxable dividends your spouse received from taxable Canadian corporations. You can only do this if, by including the dividends in your income, you will be able to claim or increase your claim for the spousal amount (see line 303).

If you use this option, you may be able to take better advantage of the dividend tax credit. Also, do not include these dividends in your spouse's income when you calculate claims such as the spousal amount on line 303 or amounts transferred from your spouse on Schedule 2.

Line 121 - Interest and other investment income

Report at this line your interest from Canadian sources, and your interest and dividend income from foreign sources.

The interest you report depends on the type of investment and on when you made the investment. This includes the interest on any income tax refund you received in 1995 and shown on your Notice of Assessment or Notice of Reassessment.

How to report

• Use Part II of Schedule 4.
• List each investment separately and attach copies of any information slips.

To determine the amount that you have to report, read the parts of this section that correspond to the type of investment that you have. This section is divided as follows:

• Bank accounts
• Term deposits, guaranteed income certificates (GICs), and other similar investments
• Treasury bills
• Earnings on life insurance policies
• Foreign interest and dividend income
• Canada Savings Bonds (CSBs)

Ba nk accounts

Report interest that was paid or credited to you in 1995, even if you did not receive an information slip. You may not receive a T5 slip for amounts under $50.

Report your share of interest from a joint account, based on how much you contributed to the account.

Example

Karen and Wes received a T5 slip from their joint bank account showing the $400 interest they earned in 1995. Karen had deposited $4,000 and Wes had deposited $1,000 into the account.

Karen reports $320 interest, calculated as follows:

$4,000 (her share) $400 (total interest) = $320
$5,000 (total)

Wes reports $80 interest, calculated as follows:

$1,000 (his share) $400 (total interest) = $80
$5,000 (total)

In most cases, you have to report all the interest from a joint bank account in which:

• you deposited all of the money; or
• the interest is from money you gave or loaned to certain related people. For more details, see "Loans and transfers of property" at line 130.

If you deposited Child Tax Benefit payments into a bank account in your child's name or a trust in your child's name, the interest earned on those payments is your child's income.

Term deposits, guaranteed income certificates (GICs), and other similar investments

On these investments, interest builds up over a period of time usually longer than one year, and you do not receive the interest until the investment matures, or you cash it in. For more information on CSBs, see the heading "Canada Savings Bonds (CSBs)" on page 13.

You have to report annually the interest you earned on all investments you made after 1989.

The amount of income you report is based on the interest you earned during each complete investment year. For example, if you made a long-term investment on July 1, 1994, the first year's interest is calculated to the end of June 1995. You may or may not receive a T5 slip showing the amount of interest you earned. In either case, you have to report the interest on your 1995 tax return. Report the interest earned from July 1995 to June 1996 on your 1996 return.

You can report interest you earned on investments you made before 1990, including CSBs, in one of the three following methods:

• cash method;
• receivable method; or
• annual accrual method.

Cash method - Report interest either in the year it is paid to you, or at least every third complete year after you make the investment. If you dispose of an investment within the three-year period, you have to report all interest (except the amount you have already reported) in the year you receive it.

Receivable method - Report interest in the year you are entitled to receive it, rather than when you actually receive it. For example, you will report the interest when a bond interest coupon matures, rather than when you actually receive the payment. Under this method, you have to report interest at least every third complete year after you make the investment.

Annual accrual method - Report interest annually, regardless of when you are entitled to receive it or when it is actually paid. For example, you report the interest from a compound-interest bond yearly as it accumulates, even though you will not receive the interest until you cash the bond.

If you want to report interest on an investment using the annual accrual method, say so on your return. Include a note identifying the investments that you have chosen to report annually. From then on, you have to report interest from those investments using the annual accrual method.

Changing your method - You can change from the cash or receivable methods to the annual accrual method. However, once you start using the annual accrual method for an investment, you cannot change to any other method for that investment. To change your method, include a note in your return stating which investments you have chosen to report annually, and report all interest to the end of the year in which you are changing your method (except the amount you have already reported).

If you have been reporting interest using the cash or receivable method, you cannot go back and change your method to the annual accrual method on returns from previous years.

Trea sury bills

If you disposed of a treasury bill (T-Bill) in 1995, you will receive either a T5008 slip, Statement of Securities Transactions, or an account statement.

If you disposed of a T-Bill at maturity, you have to report as interest the difference between the price you paid for it and the proceeds of disposition shown on the T5008 slip or account statement.

If you disposed of a T-Bill before maturity, you may also have to report a capital gain or loss. For details, get the income tax guide called Capital Gains.

Earn ings on life insurance policies

Report the earnings which have accumulated on certain life insurance policies in the same way as you do for other investments. In all cases, your insurance company will send you a T5 slip.

For policies bought before 1990, you can choose to report accumulated earnings annually by telling your insurer in writing that you choose to do so.

Fo reign interest and dividend income

Report gross foreign interest and dividend income in Canadian dollars. Do not deduct from your foreign income the amount of tax the foreign country withheld. For more information on how to convert your foreign income into Canadian dollars, see the section called "How do you report foreign income and other amounts?" on page 7.

Tax Tip

If you paid foreign taxes on foreign investment income that you received, you may be able to claim a foreign tax credit. See lines 507 and 508 for details.

Canada Savings Bonds (CSBs)

Interest on CSBs designated by the letter "R," for regular-interest, is paid annually. Interest on bonds designated by the letter "C," for compound-interest, is not paid until the bond matures, or you cash it in.

Tax Tip

If you bought bonds through your payroll savings plan, you can deduct the interest charges you paid to buy the bonds. See line 221 for details.

How to report

"R" bonds - Report the amount shown on the T5 slip.

"C" bonds, Series 45 and subsequent - Report the amount shown on the T5 slip.

"C" bonds, Series 42 to 44 - Use Chart 1 if you want to report your bond interest using the annual accrual method. We explain the methods on page 12).

If you want to change to the annual accrual method, use Chart 2 to calculate the amount you should report.

If you use the cash or receivable method, you have to report the interest at least every three years. Using this method, you should have reported the following amounts for each $100 of bonds:

• for Series 42 bonds, $33.19 interest on your 1990 return and $34.90 on your 1993 return;
• for Series 43 bonds, $35.33 interest on your 1991 return and $26.78 on your 1994 return; and
• for Series 44 bonds, $32.05 interest on your 1992 return and $24.48 on your 1995 return.

If you have not reported any interest on your Series 42, 43, or 44 "C" bonds, you should write and ask us to adjust your return. For more details on how to do this, see the section called "After you file" on page 7 of this guide.

If you cashed Series 42, 43, or 44 "C" bonds in 1995, report the amount shown on the T600 slip minus any part of that amount that you have already reported in previous years. Use Chart 3 below to calculate the amount you should have reported for each $100 of bonds:

Line 122 - Net partnership income: Limited or non-active partners only

If you were a limited partner of a partnership, that did not include a rental or farming operation, enter your share of the partnership's net income or loss on line 122.

If you were a partner (other than a limited partner) of a partnership, that did not include a rental or farming operation, enter your share of the partnership's net income or loss on line 122 only if you were:

• not actively involved in the partnership; and
• not otherwise involved in a business or profession similar to that carried on by the partnership.

Report your net rental income or loss from a partnership on line 126. Report your net farming income or loss from a partnership on line 141.

If none of the above applies to you, enter your share of the partnership's net income or loss on the applicable self-employment line of your return (see lines 135 to 143).

Note

If the partnership has a loss, the amount you can claim could be limited. For details, contact us.

How to report

• Complete Part III of Schedule 4.
• Attach to your return a T5013 slip, Statement of Partnership Income. If you did not receive this slip, attach a copy of your financial statement. See lines 135 to 143 for more details.

Note

You may have to make Canada Pension Plan contributions on the net income you report on line 122. See line 310 for details.

Canadian motion picture films and videotapes

You may have invested in a certified feature film or a certified production for reasons other than to earn income from a business. If so, and if you want to claim capital cost allowance, you have to file with your return a T1-CP slip, Statement of Certified Productions, which the producer issues. Otherwise, we may disallow your claim. Use the back of the T1-CP slip to calculate your allowable claim.

Line 126 - Rental income

Report your rental income for the 1995 calendar year. You have to include with your return a statement showing your rental income and expenses for the year. You can get a Form T776, Statement of Real Estate Rentals, from us to help you calculate your net rental income.

Enter your gross rental income on line 160 and your net rental income or loss from real estate rentals on line 126. If you have a rental loss, show the amount in brackets. You should also include any amount in box 20 of your T5013 slip, or that a partnership allocated to you in its financial statements.

The income tax guide called Rental Income contains Form T776, as well as details on rental matters.

Line 127 - Taxable capital gains

A capital gain or a capital loss usually occurs when you sell or dispose of property, such as real estate or shares. The taxable part of a capital gain is 75% of the net amount of your capital gains minus your capital losses for the year.

Under proposed legislation, if after 1991, you realized a capital gain as a result of a mortgage foreclosure or conditional sales repossession, the capital gain is excluded when calculating your claim for the GST credit, Child Tax Benefit payments, age amount, and child tax credit.

In addition, such a gain is not included in the calculation of a social benefits repayment at line 235. If this applies to you, contact us for more details.

How to report

Use Schedule 3 to calculate your taxable capital gains or allowable capital losses and attach the completed schedule to your return. If you receive a T5008 slip, an account statement showing your securities transactions, or a financial statement from a partnership, use the information on these statements to help you complete Schedule 3. If you need more information on capital gains or capital losses, get the income tax guide called Capital Gains.

If you have a taxable capital gain, transfer the amount from line 044 on the back of Schedule 3 onto line 127 of your return. If you have a net capital loss, do not claim it on line 127. You can only use it to reduce your taxable capital gains of other years. See the "Note" at line 253 for details on how to carry back your loss.

Tax Tip

You may be able to claim a deduction for the taxable capital gain you report. See line 254 for details.

Line 128 - Alimony or maintenance income

Enter on line 128 the taxable alimony or maintenance payments you received or are considered to have received in 1995.

Generally, the alimony or maintenance payments you received are taxable, if all of the following conditions are met:

• When you received the payments, you and the person making the payments were living apart and you continued to live apart for the rest of the year.
• The payments were made under a court order or written agreement.
• The payments were made to maintain you, your children, or both.
• The payments were an allowance to be paid periodically. For example, the payments could be made monthly, quarterly, semi-annually, or annually.
• The payments were made to you or to someone else on your behalf.

Note

There are exceptions to these conditions. If this is the first time you are reporting support payments, or if you do not know whether the payments you received are taxable, get the pamphlet called Alimony or Maintenance.

Tax Tip

You may have to report alimony or child support payments you received from a resident of another country. However, if a tax agreement exists between Canada and the other country, the alimony or child support payments may be tax-free in Canada. You can claim a deduction for them on line 256. To find out if the payments you received are tax-free, contact us.

You may be able to claim a deduction for alimony or maintenance income you repaid under a court order. For details, contact us.

Line 129 - Registered retirement savings plan (RRSP) income

In most cases, you have to enter on line 129 the total amount shown in boxes 16, 18, 20, 22, 26, 28, and 34 of your T4RSP slip. This is the case unless your spouse made a contribution to your RRSP. See the heading "Spousal RRSPs" below for more details.

Tax Tip

Annuity payments shown in box 16 of your T4RSP slip may qualify for the pension income amount. See line 314 for more details.

Spousal RRSPs

Your spouse may have to report some or all of the RRSP income shown in boxes 20, 22, or 26 of your T4RSP slip if:

• your spouse has contributed to any of your plans in 1993, 1994, or 1995; or
• you received a T4RSP slip showing a yes in box 24 and either your spouse's name in box 38 or your spouse's social insurance number in box 36.

If, at the time of the withdrawal, you and your spouse were living apart because of a breakdown in the relationship, you have to report the whole amount shown on your T4RSP slips.

Complete Form T2205, Calculating Amounts From a Spousal RRSP or RRIF to Include in Income, to calculate the amount from a spousal RRSP that each of you has to report. Both you and your spouse have to include a copy of this form with your returns. Attach the T4RSP slip to your return.

For more details on RRSP income, get the income tax guide called RRSP and Other Registered Plans for Retirement.

Repayments under the Home Buyers' Plan (HBP)

If you withdrew funds from your RRSP under the HBP before March 2, 1994, you should have received a repayment statement from us in the fall of 1995, telling you the amount of your first annual repayment for 1995. You have until February 29, 1996, to make your required repayment for 1995.

If you have not made a repayment for 1995, you have to include the required repayment, as indicated on your repayment statement, on line 129 of your return. You also have to include an amount on line 129 if you repay less than the required repayment. For more details, contact us.

Line 130 - Other income

Use this line to report taxable income that is not reported anywhere else on the return. Identify the type of income you are reporting in the space to the left of line 130 on your return. This will support any deductions you are entitled to claim against this income. If you have more than one type of income, attach a note to your return giving the details.

Scholarship s, fellowships, bursaries, and artists' project grants

Total all the scholarships, fellowships, bursaries, and artists' project grants you received in 1995 (box 28 of T4A slips).

• If they total $500 or less, do not report them.
• If they total more than $500, subtract a $500 tax-free amount. Report on line 130 only the amount that remains.

Example

Sarah received a $1,500 scholarship to attend university. She subtracts the $500 tax-free amount and reports $1,000 on line 130.

Report prizes and awards you received as a benefit from your employment or in connection with a business. However, these are not eligible for the $500 tax-free amount. If you received a research grant, see line 104.

For more information, get Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, and Research Grants.

Note

If you received an artists' project grant, you have a choice to make. You can subtract the $500 or your expenses, whichever benefits you more. However, the expenses you claim cannot be more than the grant. You cannot claim personal living expenses while at your usual place of residence.

Lump-sum payments

Enter on line 130 lump-sum payments from pensions and deferred profit-sharing plans (box 18 on T4A slips and box 22 on T3 slips).

Retiring allowances (severance pay)

Enter the amount shown in box 26 of your T4A slip.

Also, enter on this line any retiring allowance shown on your T3 slip. Any retiring allowance will be included in the amount in box 26, and details regarding it will be shown in box 36 and in the footnote area of the slip.

Note

You may be able to deduct legal fees you paid to get a retiring allowance. See line 232 for details.

Tax Tip

You can transfer part or all of your retiring allowances to your registered retirement savings plan (RRSP). See the heading "Income eligible for transfer" on page 18. However, if you make this transfer, you may have to pay minimum tax. See the heading "Minimum tax" on page 35 for details.

Death benefits

A death benefit is an amount you receive, after a person's death, for that person's employment service. It is shown in box 28 of a T4A slip or box 35 of a T3 slip. You may not have to pay tax on up to $10,000 of the benefit you received.

Report the death benefit you received because of an individual's death as follows:

• If you are the sole surviving spouse or the only person to receive a death benefit, report the amount that is more than $10,000.
• If you are the only person to receive a death benefit, besides the sole surviving spouse, the maximum amount of the death benefit which is tax-free is $10,000 minus the total death benefits received by the sole surviving spouse.
• If you are one of several people who received a death benefit, the part of the $10,000 tax-free amount that is not available to the sole surviving spouse has to be split based on the amount each person received.
• If you are one of several people, including two surviving spouses, who received a death benefit, the $10,000 tax-free amount has to be split based on the amount each person received. For income tax purposes, there could be two surviving spouses if the deceased was legally married and also had a common-law spouse as defined on page 8. If only one of the surviving spouses receives the death benefit, that spouse is considered the sole surviving spouse.

Attach a note to your return stating the amount of death benefits you received that you did not include in your income.

Note

The total tax-free amount claimed by all recipients for all years cannot be more than $10,000. A sole surviving spouse claims the death benefit exemption first. Only the part of the $10,000 tax-free amount that is not available to the sole surviving spouse can be claimed by the other recipients. Therefore, if the death benefit was paid over two or three years, you may have to adjust the tax-free amount you can claim this year or that you claimed on a previous year's return.

For more details, get Interpretation Bulletin IT-508, Death Benefits - Calculation.

Registered education savings plan income

Enter on line 130 the total taxable payments from a registered education savings plan (box 26 of your T3 slips).

Loans and transfers of property

If you lend or transfer property (including money) to certain people, you may have to report any income from that property.

This may be the case if you transferred property to your spouse or to a person who was under 18 at the end of 1995, if that person is your child, grandchild, sister, brother, niece, or nephew.

This also may be the case if you loaned property to your spouse, parents, grandparents, child, grandchild, brother, or sister.

You may have to report a capital gain or loss from property that you loaned or transferred to your spouse.

Enter the income amounts from that property, or property substituted for it, on the appropriate line of your return. For details, get Interpretation Bulletin IT-510, Transfers and Loans of Property made after May 22, 1985 to a Related Minor, or IT-511, Interspousal and Certain Other Transfers and Loans of Property.

Other income

You should also report the following amounts on line 130:

• amounts distributed from a retirement compensation arrangement;
• training allowances, Saskatchewan Pension Plan payments, or any other amount shown in box 28 of a T4A slip;
• amounts from a trust (including an amateur athlete trust) shown in box 26 of a T3 slip;
• certain annuity payments (see line 115);
• income assistance payments you received under The Atlantic Groundfish Strategy (if you received these payments because you were a self-employed fisherman, report them on line 143); and
• any other type of taxable income that you are not reporting anywhere else.

Lines 135 to 143 - Self-employment income

Enter your gross and net income or loss from self-employment on the appropriate line of your return. If you have a loss from self-employment, show it in brackets.

Under proposed legislation, for fiscal periods beginning after 1994, the rules for reporting your self-employed income have changed This change may mean that you have to include more than 12 months of self-employment income on your 1995 return. However, there are special rules that apply. For more details, get a copy of the applicable guide listed on page 17.

Make sure you report your self-employment income on the correct line of your return. You have to include with your return a statement showing your self-employment income and expenses.

The following income tax guides contain additional information and forms you may need to help you calculate your self-employment income:

• Business and Professional Income (Form T2124, Statement of Business Activities, and Form T2032, Statement of Professional Activities)
• Farming Income (Form T2042, Statement of Farming Activities)
• Fishing Income (Form T2121, Statement of Fishing Activities)

If you are using your home for day care, you may also wish to get the pamphlet called Using Your Home for Day Care.

To get any of these publications, contact us.

If you were a limited or non-active partner, enter your net income or loss on line 122, unless the following applies. If your net income or loss is from a rental operation, enter it on line 126. If it is from a farming operation, enter it on line 141.

If you were an active partner and received a T5013 slip, Statement of Partnership Income, report the amount from box 18 on the line of your return that agrees with the three-digit code shown in box 12. This is your share of the partnership's income or loss. Also report the partnership's gross income as shown in box 31. Attach a copy of the T5013 slip to your return. If you did not receive this slip, attach a copy of the applicable self-employment form as indicated above.

Note

You may have to make Canada Pension Plan contributions on your self-employment earnings. See line 310 for details.

Line 144 - Workers' Compensation payments

Enter the amount shown in box 10 of your T5007 slip. If you did not receive a T5007 slip, report the amount from the information slip you did receive.

Claim a deduction on line 250 for the Workers' Compensation payments you entered on line 144.

Line 145 - Social assistance payments

Enter on line 145 the amount shown in box 11 of your T5007 slip, unless the following applies. If you lived with your spouse at the time either of you received the social assistance payments, the spouse with the higher net income (line 236) has to report these payments.

If you did not receive a T5007 slip, report the amount from the information slip you did receive. If the slip shows both your and your spouse's name, the spouse with the higher net income (line 236) has to report the total amount.

If you received a Relevé 5 slip, the instructions on the back of the slip explain how to report this income.

Claim a deduction on line 250 for the social assistance payments you entered on line 145.

Note

Do not include social assistance payments you or your spouse received for being a foster parent or for caring for a disabled adult who was living with you, unless the payments are for your spouse or an individual related to you or your spouse.

Line 146 - Net federal supplements

Enter the amount shown in box 21 of your T4A(OAS) slip.

Tax Tip

If your net income before adjustments (line 234) is $53,215 or less, claim a deduction on line 250 for the net federal supplements you entered on line 146.

If line 234 of your return is more than $53,215, contact us to determine how much you can deduct on line 250.