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ARCHIVED - Taxable income

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• Line 244 - Canadian Forces personnel and police deduction
• Line 248 - Employee home relocation loan deduction
• Line 249 - Security options deductions
• Line 250 - Other payments deduction
• Line 251 - Limited partnership losses of other years
• Line 252 - Non-capital losses of other years
• Line 253 - Net capital losses of other years
• Line 254 - Capital gains deduction
• Line 255 - Northern residents deductions
• Line 256 - Additional deductions
  • Income exempt under a tax treaty
  • Vow of perpetual poverty
  • Adult basic education tuition assistance
  • Employees of prescribed international organizations

Line 244 - Canadian Forces personnel and police deduction

Enter the total of amounts shown in box 43 of all your T4 slips.

Under proposed legislation, this new deduction applies to 2004 and subsequent years. For certain members of the Canadian Forces and Canadian police services, an amount will be shown in box 43 only if you were deployed outside Canada on a high-risk or current moderate-risk operational mission. For more information, contact your employer.

Line 248 - Employee home relocation loan deduction

Enter the total of the amounts shown in box 37 of your T4 slips.

Line 249 - Security options deductions

Enter the total of the amounts shown in boxes 39 and 41 of your T4 slips. In addition, if you disposed of securities for which you had previously deferred the taxable benefit (see "Security option benefits"), claim 50% of the amount from line 4 of Form T1212, Statement of Deferred Security Options Benefits .

You may be able to claim a deduction for donating securities you acquired through your employer's security options plan. For details, see "Gifts of securities acquired under a security option plan" in pamphlet P113, Gifts and Income Tax .

Line 250 - Other payments deduction

Generally, you can deduct the amount from line 147 of your return. This is the total of the workers' compensation payments, social assistance payments, and net federal supplements you entered on lines 144, 145, and 146.

Note
If your net income before adjustments (line 234) is more than $59,790 and you reported net federal supplements on line 146, you may not be entitled to claim the whole amount from line 147. Contact us to determine how much you can deduct.

Line 251 - Limited partnership losses of other years

If you had limited partnership losses in previous years that you have not already deducted, you may be able to claim part of these losses this year. For details, contact us.

You can carry forward limited partnership losses indefinitely. If you claim these losses, attach to your paper return a statement showing a breakdown of your total losses, the year of each loss, and the amounts deducted in previous years. You cannot use the amount in box 31 of your T5013 slip for 2004 on your return for 2004.

Line 252 - Non-capital losses of other years

Previously, you would enter the amount of the unapplied non-capital losses you reported on your 1997 to 2003 returns that you want to apply in 2004. Under proposed legislation, the loss carry-forward period for non-capital losses arising in tax years ending after March 22, 2004, has been extended from seven to ten years.

Also, enter any unapplied farming and fishing losses you reported on your 1994 to 2003 returns that you want to apply in 2004. Your available losses are shown on your Notice of Assessment or Notice of Reassessment for 2003.

There are restrictions on the amount of certain farm losses that you can deduct each year. If you have a farming or fishing business, get either guide T4003, Farming Income , RC4060, Farming Income and CAIS Program , or T4004, Fishing Income , for details.

If you need more information on losses, get Interpretation Bulletin IT-232, Losses - Their Deductibility in the Loss Year or in Other Years .

Line 253 - Net capital losses of other years

Within certain limits, you can deduct your net capital losses of previous years that you have not already claimed. Your available losses are shown on your Notice of Assessment or Notice of Reassessment for 2003. You probably will have to adjust any losses you incurred after 1987 and before 2001. For details, get guide T4037, Capital Gains .

Line 254 - Capital gains deduction

You may be able to claim a capital gains deduction for gains realized on qualified small business corporation shares and qualified farm property. For more details on this deduction, get guide T4037, Capital Gains .

Line 255 - Northern residents deductions

To make your claim, use Form T2222, Northern Residents Deductions . Residents of the Northwest Territories, Nunavut, and Yukon will find this form in their forms book. You also can get a copy from us. For a list of the areas that qualify, get publication T4039, Northern Residents Deductions - Places in Prescribed Zones .

Receipts - If you are filing a paper return, include a completed Form T2222, but not your receipts. Keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

Line 256 - Additional deductions

In the space to the left of line 256, specify the deduction you are claiming. If you have more than one amount, or you want to explain your deduction more fully, attach a note to your paper return.

Income exempt under a tax treaty

If you included foreign income on your return (such as support payments you received from a resident of another country and reported on line 128) that is tax-free in Canada because of a tax treaty, you can claim a deduction for it. If you do not know whether any part of the foreign income is tax-free, contact us.

Note
Under the Canada-U.S. tax treaty, you can claim a deduction equal to 15% of the U.S. social security benefits included in your income on line 115.

Vow of perpetual poverty

If you have taken a vow of perpetual poverty as a member of a religious order, you can deduct the amount of earned income and pension benefits that you have given to the order. Attach to your paper return a letter from your order or your employer stating that you have taken a vow of perpetual poverty. For more information, see Interpretation Bulletin IT-86, Vow of perpetual poverty .

Adult basic education tuition assistance

You may have received (and included in your income) assistance to cover all or part of the tuition fees you paid for primary or secondary school courses. If so, you can claim a deduction for the amount of qualifying assistance shown in box 21 of your T4E slip.

Employees of prescribed international organizations

If, in 2004, you were employed by a prescribed international organization, such as the United Nations, you can claim a deduction for net employment income you report from that organization. Net employment income is your employment income minus the related employment expenses that you are claiming.

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Date modified:

2006-01-04