Line 206 - Pension adjustment

Enter on line 206 the total of all amounts in box 52 of your T4 or T4 Short slips, or box 34 of your T4A slips. Generally, this total represents the value of the benefits you earned in 1996 under registered pension plans or deferred profit-sharing plans.

Do not include the pension adjustment (PA) amount in your income, and do not deduct it on your return. Simply enter this amount on line 206. We will use it to calculate your 1997 registered retirement savings plan (RRSP) deduction limit, which we will show on yourNotice of Assessmentfor 1996.See line 208 for details.

If you have any questions about how your PA was calculated, ask your employer.

Note
If you live in Canada and you participated in a foreign pension plan in 1996, you may have to enter an amount on this line. For details, contact us.

Line 207 - Registered pension plan contributions

Enter the total of all deductible amounts you contributed to your registered pension plans (RPPs). These amounts are included in box 20 of your T4 or T4 Short slip, in box 32 of your T4A slip, or on your union or RPP receipt.

You can deduct the total amount unless it is more than $3,500andyour information slip shows a past-service amount for a period before 1990. If this is the case, get the income tax guide calledRRSPs and Other Registered Plans for Retirementfor information on how much you can deduct. You should also get that guide if you contributed to an RPP in a previous year and could not deduct part of the amount.

Under proposed changes, you have to start receiving a pension from your RPP by the end of the year you turn 69. However, if you were 69 or 70 at the end of 1996, you can wait until the end of 1997. If, before March 6, 1996, your RPP already provided a specific starting date for your pension benefits, that date will remain in effect.

Receipts- With the exception of your T4, T4 Short, and T4A slips, do not include your receipts with your paper return. If you are using EFILE (see "Filing your return" on page 6) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 208 - Registered retirement savings plan (RRSP) contributions

This section gives general information on RRSPs. It is divided into the following parts:

• Maximum you can deduct
• 1996 RRSP deduction limit
• Income eligible for transfer
• Repayments under the Home Buyers' Plan (HBP)
• Schedule 7,RRSP Unclaimed Contributions, Transfers, and Designations of Repayments Under the Home Buyers' Plan

If you need more information after reading this section, get the income tax guide calledRRSPs and Other Registered Plans for Retirement.

Receipts- Attach to your paper return official receipts that confirm all amounts you contributed, including those you are designating as HBP repayments. See the heading"Repayments under the Home Buyers' Plan (HBP)"on this page. If you are using EFILE (see "Filing your return" on page 6) show your receipts to your EFILE service provider, and keep them in case we ask to see them.

We will only accept a photocopy of a receipt if the issuer certifies that it is a true copy. If you contributed to your spouse's plan, the receipt has to show your name as the contributor and your spouse's name as the annuitant.

Maximum you can deduct

The maximum you can deduct on line 208 is whichever of the following amounts isless:

• your "1996 RRSP deduction limit"plus"income eligible for transfer" that you received in 1996 and transferred to an RRSP before March 2, 1997; or
• the total of your RRSP contributions from March 1, 1996, to March 1, 1997,plusthe RRSP contributions you made from January 1, 1991, to February 29, 1996, that were not allowed as a deduction on your returns for the years 1990 to 1995.

Your RRSP contributionsinclude amounts you contributed to your own RRSP or an RRSP for your spouse based on your "1996 RRSP deduction limit." They also include eligible amounts from lines 115, 129, and 130 of your 1996 return that you transferred to your own RRSP. However, your RRSP contributionsdo not includeany of the amounts mentioned in the"Note"below the heading "Transfers" on page 19. For more information on eligible amounts you can transfer, see the heading "Income eligible for transfer" on this page.

Under proposed changes, neither you nor your spouse can contribute to your RRSP after the end of the year you turn 69. However, if you were 69 or 70 at the end of 1996, you and your spouse can still contribute until the end of 1997. If an RRSP annuity contract you purchased before March 6, 1996, already provides a specific starting date, that date will remain in effect.

Even if you cannot contribute to your own RRSP, you can still contribute to an RRSP for your spouse, as long as your spouse's age allows.

Overcontributions- If you overcontribute to an RRSP, you may have to pay a special tax. For more details, get a copy of the income tax guide calledRRSPs and Other Registered Plans for Retirement.

1996 RRSP deduction limit

We will show your 1996 RRSP deduction limit on your latestNotice of Assessment, Notice of Reassessment,or on Form T1028,Your RRSP Deduction Limit Statement for 1996.

If you do not have your notice or Form T1028, you can find out your limit for 1996 by calling our automatedT.I.P.S. (RRSP)service, or by contacting your tax services office.

If you would like to calculate your 1996 RRSP deduction limit, get the income tax guide calledRRSPs and Other Registered Plans for Retirement.

Note
You can carry forward the part of your RRSP deduction limit that you do not use. The amount you can carry forward is called yourunused RRSP deduction room. Your RRSP deduction limit includes any unused RRSP deduction room accumulated after 1990.

Under proposed changes, you can carry forward indefinitely your unused RRSP deduction room accumulated after 1990.

You may have had income in a previous year for which you did not file a return. In order to update your RRSP deduction limit, you would have to file a return for that year.

Income eligible for transfer

You can claim an RRSP deduction for eligible amounts you received and included in income on your 1996 return, and that you contributed to your own RRSP before March 2, 1997. You can deduct this contribution, called atransfer, in addition to any RRSP contribution you make based on your "1996 RRSP deduction limit."

You can transfer to your own RRSP only certain types of income you received and reported on lines 115, 129, or 130 of your 1996 return. For example, if you received a retiring allowance in 1996, you can contribute to your RRSP up to the eligible part of that income, and deduct it as a transfer. The income tax guide calledRRSPs and Other Registered Plans for Retirementgives more details on the income that is eligible for transfer.

Note
If you are deducting an amount you transferred to your RRSP, you have to complete Schedule 7.

If you transfer amounts to an RRSP, you may have to pay minimum tax. See "Minimum tax" on page 34 for details.

Repayments under the Home Buyers' Plan (HBP)

If you withdrew funds from your RRSP under the HBP after March 1, 1994, but before 1995, you have to make your first annual repayment before March 2, 1997. If you withdrew funds in 1995, you have to make your first annual repayment before March 2, 1998. If you withdrew funds in 1996, you have to make your first annual repayment before March 2, 1999.You cannot deduct on your return any RRSP contribution you designate as an HBP repayment on Schedule 7.

Repayments for 1996- You have to attach Schedule 7 to your1996return. Enter on line 246 of Schedule 7 the total of the RRSP contributions you made from January 1, 1996, to March 1, 1997, that you want to designate as repayments under the HBP for 1996, provided you did not deduct them or designate them as repayments on your 1995 return.

Note
If you have not repaid the amount indicated on yourHome Buyers' Plan Statement of Account, for 1996 before March 2, 1997, you have to include an amount in income.See line 129for details.

If you participated in the HBP and withdrew funds before 1995, you should have received a repayment statement from us in the fall of 1995. The statement will show the amount you have to repay to your RRSP for 1996.Do not make the repayment to us.Your statement will also confirm the total amount you have repaid to date.

If you would like more information, get the pamphlet calledHome Buyers' Plan (HBP).

Schedule 7, RRSP Unclaimed Contributions, Transfers, and Designations of Repayments Under the Home Buyers' Plan

See Schedule 7 to determine if you have to complete this schedule and attach it to your return. It is important that you complete Schedule 7, because the information you provide allows us to verify any deduction for unclaimed RRSP contributions on your future returns. This information will also enable us to tell you, on yourNotice of Assessmentfor 1996, your unclaimed RRSP contributions available for you to deduct on your 1997 return.

Unclaimed RRSP contributions -You may have made a contribution to your own RRSP or an RRSP for your spouse that you did not deduct on any income tax return. This could happen if you made a contribution to your RRSP that is more than your RRSP deduction limit for the year. It could also happen if you chose not to claim an RRSP contribution you made in a year.

Note
If you had unclaimed RRSP contributions for 1995, you should have filed a completed Schedule 7 with your 1995 return. If you did not, you should submit a completed copy of a 1995 Schedule 7 to your tax centre. See"How do you change your return?"on page 7 for details.

If you made contributions to your own RRSP or an RRSP for your spouse from January 1, 1991, to February 29, 1996, that you have not deducted, and you did not file a 1995 return, contact us.

If you do not have your 1995Notice of AssessmentorNotice of Reassessment, you can find out if you have unclaimed RRSP contributions for 1995 by calling our automatedT.I.P.S. (RRSP)service. You will find T.I.P.S. information in the forms booklet.

Home Buyers' Plan- See the heading"Repayments under the Home Buyers' Plan (HBP)"on page 18 for more details.

Transfers- For more information on transfers, see the heading "Income eligible for transfer" on page 18.

Note
Youcannotclaim an RRSP deduction for certain RRSP contributions you made. When completing Schedule 7,do not include the following amounts:

• Any payments directly transferred to your own RRSP for which you did not receive an information slip.
• Any RRSP contribution you made after February 29, 1996, that was refunded to you or your spouse in 1996 because it was an undeducted contribution. Report the refund on line 129 of your 1996 return. If you have Form T3012A,Tax Deduction Waiver on the Refund of Your Undeducted RRSP Contributions,that we have approved for that amount, attach a copy of it to your return and claim a deduction on line 232. Otherwise, complete and attach Form T746,Calculating Your Deduction for Refund of Undeducted or Excess RRSP Contributions, to find out if you can claim this deduction.
• Part or all of the contributions you made to your RRSP or an RRSP for your spouse less than 90 days before you or your spouse withdrew funds from that RRSP under the Home Buyers' Plan. For more details, get the pamphlet calledHome Buyers' Plan (HBP).
• The excess part of a direct transfer of a lump-sum payment from your registered pension plan (RPP) to an RRSP or registered retirement income fund (RRIF) that you withdrew and are including on line 129 or 130 of your 1996 return, and deducting on line 232. You may have completed Form T1043,Calculating Your Deduction to Offset RRSP or RRIF Income if an Excess Amount from an RPP Has Been Transferred to an RRSP or a RRIF, to calculate the deductible amount.
• The part of an RRSP withdrawal that you recontributed to your RRSP and deducted on line 232. This would have happened if you accidentally withdrew more RRSP funds than necessary to obtain past-service benefits under an RPP.

Line 209 - Saskatchewan Pension Plan contributions

You may be able to deduct contributions for 1996 to the Saskatchewan Pension Plan (SPP). You can deduct whichever of the following three amounts is least:

• $600;
• the total amount you contributed (or your spouse contributedfor you) to the SPP from January 1, 1996, to March 1, 1997 (excluding any contributions that you deducted on your 1995 return); or
• your 1996 RRSP deduction limit minus your RRSP deduction from line 208 (not including transfers to your RRSP).

Receipts- Attach your receipts to your return. If you are using EFILE (see "Filing your return" on page 6) show your receipts to your EFILE service provider, and keep them in case we ask to see them.

Note
You can only claim amounts you contributed (or your spouse contributed for you) to your own plan. Only your spouse can claim amounts you or your spouse contributed to your spouse's plan.

Line 212 - Annual union, professional, or like dues

Enter thetotalof the following:

• annual membership dues you paid to a trade union or an association of public servants;
• professional or malpractice liability insurance premiums or professional membership dues you paid if you had to pay them to keep a professional status recognized by law; and
• dues you paid to a parity or advisory committee (or similar body) if you had to pay them under provincial law.

Annual membership dues do not include initiation fees, special assessments, or charges for anything other than the organization's ordinary operating costs. You cannot claim charges for pension plans as membership dues even if your receipts show them as dues. For more information, get Interpretation Bulletins IT-103,Dues Paid to a Union or to a Parity or Advisory Committee, and IT-158,Employees' Professional Membership Dues.

The amount you paid, as shown in box 44 of your T4 or T4 Short slip or on your receipt, includes any goods and services tax (GST).

Tax Tip
You may be eligible for a rebate of any GST you paid as part of your dues.See line 457for details.

Receipts- With the exception of your T4 or T4 Short slip, do not include your receipts with your paper return. If you are using EFILE (see "Filing your return" on page 6) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 214 - Child care expenses

You may be able to claim child care expenses you (or your spouse, if you have one) paid for someone to look after your children so that you (or your spouse) could:

• earn income from employment or self-employment;

• under proposed changes, spend at least 10 hours per week for at least 3 consecutive weeks studying in an educational program at a secondary school, or a college, university, or other designated educational institution;

• take an occupational training course for which you or your spouse received a training allowance under theNational Training Act; or
• conduct research or similar work for which you or your spouse received a grant.

Under proposed changes, you can claim expenses for a child who was under 16 at any time in the year.

To make your claim, get Form T778,Calculation of Child Care Expenses Deduction for 1996, and Form T1065, Child Care Expenses Information Sheet for 1996. However, if you claimed child care expenses on your 1995 return, there should be a copy of this form and information sheet in the tax package we mailed to you. Attach a completed copy of Form T778 to your return.

Tax Tip
You may be able to claim payments you made to a boarding school, sports school, or camp. For details, see Forms T1065 and T778.

Line 215 - Attendant care expenses

You may be able to claim up to $5,000 you paid for attendant care that allowed you to earn income. For more information, call ourT.I.P.S. (Info-Tax)service. For more details, see the T.I.P.S. information in the forms booklet. To calculate the amount you can claim, complete Form T929,Attendant Care Expenses.

Receipts- Do not include your receipts or Form T929 with your paper return. If you are using EFILE (see "Filing your return" on page 6) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 217 - Business investment loss

A business investment loss is a special type of capital loss. For instance, such a loss can occur when you dispose of shares or certain debts of a small business corporation.

If you incurred a business investment loss, get the income tax guide calledCapital Gainsfor details on how to complete line 217 and line 228, which is located to the left of line 217.

If you have a tax shelter, see "Tax shelters" on page 10.

Line 219 - Moving expenses

If you moved in 1996, you may be able to deduct your moving expenses from income you earned at the new location. You can deduct your expenses ifallof the following apply:

• You moved to start a job or a business, or to study full-time at an educational institution that offers post-secondary courses.
• Your new home is at least 40 kilometres (by the shortest normal public route) closer than your previous home to your new workplace or school.
• Your move was from one place in Canada to another place in Canada. However, if you were afactual resident(as described on page 5) you may be able to claim expenses for a move outside Canada.

How to claim

Get Form T1-M,Claim for Moving Expenses. You have to complete Form T1-M to determine how much you can deduct.

Note
If you moved in 1995 but could not claim all your moving expenses in that year, you can claim the remaining expenses against income you earned in 1996 at the new location.

Receipts- Do not include your receipts or Form T1-M with your paper return. If you are using EFILE (see "Filing your return" on page 6) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 220 - Alimony or maintenance paid

Enter the deductible alimony or maintenance you paid in 1996. Generally, you can deduct these payments, ifallof the following conditions are met:

• When you made the payments, you were living apart from the person to whom or for whom you made the payments, and you continued to live apart for the rest of the year.
• You made the payments under a court order or written agreement.
• You made the payments to maintain your spouse or former spouse, your children, or both.
• The payments were an allowance to be paid periodically, such as monthly, quarterly, semi-annually, or annually.

Note
There are exceptions to these conditions. If you separated in 1996, or if you do not know whether the payments you made are deductible, get the pamphlet calledAlimony or Maintenance.

You may have to report as income any reimbursement you received under a court order for alimony or maintenance payments. For details, get the pamphlet calledAlimony or Maintenance.

Under proposed changes, you will not be able to deduct from your incomechild supportthat becomes payable after April 30, 1997, under a court order or written agreement dated May 1, 1997, or later. You will be able to deduct from your income amounts paid that became payable under orders and agreements dated before May 1, 1997, unless:

• the order or agreement provides that the amounts payable on or after a specific date (May 1, 1997, or later) will not be deductible by you;
• the order or agreement is amended after April 30, 1997, to vary the amounts payable on or after a specific date (May 1, 1997, or later); or
• you and the recipient jointly elect, using Form T1157,Election for Child Support Payments, that the new rules will apply as of a specific date (May 1, 1997, or later). For more information, see Form T1156,Support Payments Information Sheet.

You may have to register your court order or written agreement by using Form T1158,Registration of Family Support Payments. For more information, see Form T1156.

Receipts- Do not include your receipts or cancelled cheques, or your court order with your paper return. If you are using EFILE (see "Filing your return" on page 6) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Tax Tip
If your court order or written agreement was signed in 1996, and it mentions the payments you made in 1995, you can ask us to adjust your 1995 return to claim those payments. See"How do you change your return?"on page 7.

Line 221 - Carrying charges and interest expenses

You may be able to claim carrying charges and interest you paid to earn income from investments. To make your claim, complete Part IV of Schedule 4.

Carrying charges

Carrying charges include:

• fees for the management or safe custody of investments;
• safety deposit box charges;
• fees for certain investment advice (see Interpretation Bulletin IT-238,Fees Paid to Investment Counsel) or for recording investment income;
• fees to have someone complete your tax return, but only if you have income from a business or property, accounting is a normal part of the operations of your business or property, and you did not use the amounts claimed to reduce the business or property income you reported (see Interpretation Bulletin IT-99,Legal and Accounting Fees); and
• administration fees for your self-administered RRSP or RRIF that you had to pay to the trustee of your RRSP or RRIF (see the income tax guide calledRRSPs and Other Registered Plans for Retirement).

Under proposed changes, you cannot deduct amounts you paid after March 5, 1996, for administration services for any RRSP or RRIF.

You cannot deduct on line 221 any brokerage fees or commissions you paid when you bought or sold securities. Instead, you use these costs when you calculate your capital gain or capital loss. For more information, get the income tax guide calledCapital Gains.

Carrying charges for foreign income- If you have carrying charges for Canadian and foreign investment income, identify them separately on Schedule 4, according to the percentage that applies to each investment.

Interest expenses

You can usually deduct the interest you paid on money you borrowed to earn investment income. Generally, if you no longer use the borrowed money to earn income, you can no longer deduct the interest you paid on that money. However, if you no longer use the borrowed money to earn investment income in 1996, and any part of the borrowed money has been lost because the value of the property has declined, you may be able to deduct all or a part of the interest you paid on that money. For details, contact us.

Canada Savings Bonds (CSBs)- When you buy bonds through payroll deductions, you pay an interest charge. You can claim this amount on line 221.

Example
Michael bought $1,000 of Series 50 CSBs through payroll deductions. The total amount deducted from his pay for the bond was $1,025.64 (composed of the $1,000 face value of the bond plus $25.64 he paid in interest). Michael can claim the $25.64 on line 221.

Policy loan interest- To claim interest you paid during 1996 on a policy loan made to earn income, have your insurer complete Form T2210,Verification of Policy Loan Interest by the Insurer, before May 1, 1997. Keep the completed form in case we ask to see it.

Receipts- Do not include your receipts or Form T2210 with your paper return. If you are using EFILE (see "Filing your return" on page 6) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

If you have a tax shelter, see "Tax shelters" on page 10.

Line 224 - Exploration and development expenses

If you invested in a petroleum, natural gas, or mining venture in 1996, but did not participate actively, you can deduct your expenses on this line. If you participated actively, claim your expenses on line 135.

How to claim

• Complete Part V of Schedule 4 using the information that the principals of the venture give you.
• Attach to your return either a T5013 slip or a copy of the statement that gives details of the deduction.

The statements have to identify you as a participant in the venture, show your allocation (the number of units you own, the percentage assigned to you, or the ratio of your units to those of the whole partnership), and give the name and address of the fund.

If you have a tax shelter, see "Tax shelters" on page 10.

Renounced resource expenses- If you received a T101 or T102 slip, use the instructions on the back of the slip to calculate your deduction. Attach to your return your slip and a schedule showing how you calculated your deduction.

Depletion allowances- Claim these amounts on line 232.

If you have any questions about these expenses, call theBusiness Enquiriesnumber at your tax services office. See thetelephone listingsunder "Revenue Canada" in the Government of Canada section of your telephone book.

Line 229 - Other employment expenses

You may be able to deduct certain expenses you paid (including any goods and services tax (GST) you paid) to earn employment income if:

• under your employment contract, you had to pay the expenses; and
• you did not receive an allowance for the expenses, or the allowance you received is included in your income.

Most employeescannotclaim travel or other expenses, such as clothes and tools. You cannot deduct the cost of travel to and from work.

You have to include with your return certain details about your employment expenses. Form T777,Statement of Employment Expenses, lists these details and will also help you calculate how much you can deduct. Attach a completed copy of this form to your return.

The income tax guide calledEmployment Expensescontains Form T777 and other forms you will need. The guide also explains the limits and conditions that apply when you claim employment expenses.

Artists' employment expenses- If you are an artist who is an employee, you may be able to deduct expenses you paid to earn income from certain artistic activities. For details, get the income tax guide calledEmployment Expenses.

Repayment of salary or wages- You can deduct salary or wages you reported as income on this year's return (or on a previous year's return) and which you repaid in 1996. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits. However, you cannot deduct more than the income you received when you did not perform the duties of your employment.

Legal fees- You can deduct legal fees you paid to collect or establish a right to salary or wages. However, you have to reduce your claim by any amount awarded to you, or any reimbursement you received for your legal expenses.

Receipts- Do not include your receipts or forms with your paper return, except for Form T777. If you are using EFILE (see "Filing your return" on page 6) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Tax Tip
You may be eligible for a rebate of any GST you paid as part of your expenses.See line 457for details.

Line 232 - Other deductions

Use this line to deduct the amounts explained in this section. Identify the deduction you are claiming in the space to the left of line 232. If you have more than one kind of deduction, or you want to explain your deduction more fully, attach a note to your return.

Repaying income amounts

If you repaid amounts in 1996 that you already reported as income, you may be able to deduct them on your 1996 return. Attach receipts or other documents showing the amounts you paid. You can claim repayments of:

• Employment Insurance (EI) benefits (see the explanation that follows);
• Old Age Security or Canada or Quebec Pension Plan benefits;
• retiring allowances (severance pay);
• refund interest (see the explanation on page 23);
• scholarships, fellowships, and bursaries;
• allowances under theNational Training Act;
• research grants;
• benefits under theLabour Adjustment Benefits Act;
• loans under a life insurance policy up to the amount that you previously included in your income;
• amounts you received under the Program for Older Worker Adjustment; and
• income assistance payments you received under The Atlantic Groundfish Strategy.

EI benefits- You may have received more benefits than you should have, and already repaid them to Human Resources Development Canada (HRDC). For example:

• HRDC may have reduced your EI benefits after discovering the mistake. In this case, your T4U slip will show only the net amount you received, so you cannot claim a deduction.
• You may have repaid HRDC. If so, you should receive an official receipt,Statement of Benefits Repaid. Enter on line 232 the amount shown on this receipt. Attach the receipt to your return. This is not the same as repaying a social benefit as explained at line 235.

Refund interest- If we paid you interest on an income tax refund, you have to report the interest in the year you receive it, as explained at line 121 in this guide. If we then reassessed your return and you repaid some of the refund interest in 1996, you can deduct the amount you repaid.

Legal fees

You can deduct the fees you:

• paid for advice or assistance in objecting to or appealing an assessment or decision under theIncome Tax Act, theUnemployment Insurance Act, theEmployment Insurance Act, theCanada Pension Plan, or theQuebec Pension Plan, plus any related accounting fees (although you have to reduce your claim by any award or reimbursements you received for such expenses);
• incurred to collect late alimony or maintenance payments that you will include in your income;
• incurred to get a court order when you have to sue your spouse or former spouse for maintenance payments in a family court; and
• paid to collect, or establish a right to, a retiring allowance or pension benefit. However, you can only claim up to the amount of retiring allowance or pension income you received in the year,minusany part of these amounts transferred to a registered retirement savings plan or registered pension plan. You also have to reduce your claim by any award or reimbursement you got for these expenses. You can carry forward legal fees that you cannot claim in the year for up to seven years.

However, youcannotclaim legal costs to obtain a divorce or separation, to establish a right to alimony or maintenance payments, or to establish custody of a child.

For information on whether you can deduct other legal fees, get Interpretation Bulletin IT-99,Legal and Accounting Fees.

Other amounts you can deduct

You can also deduct the following on this line:

• depletion allowances (complete Part VI of Schedule 4, and attach a statement showing how you arrived at your claim);
• a refund to you or your spouse in 1996, of an undeducted RRSP contribution that you made after 1990 (attach an approved Form T3012A,Tax Deduction Waiver on the Refund of Your Undeducted RRSP Contributions, or Form T746,Calculating Your Deduction for Refund of Undeducted or Excess RRSP Contributions);
• an amount for a cleric's residence (get Interpretation Bulletin IT-141,Clergymen's Residences,for details); and
• capital cost allowance on a Canadian certified feature film or certified production. You have to file with your return a copy of information slip T1-CP,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. If you are a limited partner of a partnership, make your claim on line 122.

If you have a tax shelter, see "Tax shelters" on page 10.

Line 235 - Social benefits repayment

Employment Insurance (EI) benefits

If you received EI benefits (line 119) in 1996 and your net income before adjustments (line 234) is more than $48,750, you have to repay part of these benefits. Complete Chart 1 to calculate how much you have to repay.

Old Age Security (OAS) pension benefits and net federal supplements

If you received OAS pension (line 113) or net federal supplements (line 146) and your net income before adjustments (line 234) is more than $53,215, you may have to repay all or a part of these benefits. Complete Chart 2 to calculate how much you have to repay.

Note
Recovery tax may have been withheld from your monthly OAS amount if you had an OAS repayment for 1995. The amount deducted is shown as "income tax deducted" in box 22 of your 1996 T4A(OAS) or T4A(P) slip. Claim it on line 437, to reduce the amount of tax you owe when you file your 1996 return. Similarly, if you have an OAS repayment for 1996, tax may be withheld starting with your July 1997 amount. For more details, contact us.

Line 237 - Accumulated forward-averaging amount withdrawal

If you made a forward-averaging election for 1987 or earlier, you may want to bring some or all of your accumulated averaging amount into income on your 1996 return. To do this, get Form T581,Forward Averaging Tax Credits. Attach a completed copy to your return. You have to file your return and Form T581 by the filing due date.

Note
The return for 1997 will be the last return on which you will be able to withdraw previously averaged amounts.

Line 248 - Employee home relocation loan deduction

Generally, you enter the amount shown as "Home Loan $xxx" in the footnotes area of your T4 slip. However, there is a maximum you can deduct. To find out the maximum you can deduct for 1996, call theBusiness Enquiriesnumber in thetelephone listingsunder "Revenue Canada" in the Government of Canada section of your telephone book.

Line 249 - Stock option and shares deductions

Enter the amount shown as "Stock-Option 110(1)(d) $xxx" or "Stock-Option 110(1)(d.1) $xxx" in the footnotes area of your T4 slip.

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 $53,215andyou 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. For details, contact us.

You can carry forward limited partnership losses indefinitely. If you claim these losses, attach a statement showing a breakdown of your total losses and the year of each loss. You cannot use the amount in box 23 of your 1996 T5013 slip on your 1996 return.

Line 252 - Non-capital losses of other years

Enter the amount of your unapplied non-capital losses from 1989 to 1995, or your unapplied farming and fishing losses from 1986 to 1995, that you want to apply in 1996. 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 the income tax guide calledFarming Incomeor the guide calledFishing Incomefor details.

If you need more information on losses, get Interpretation Bulletin IT-232,Non-Capital Losses, Net Capital Losses, Restricted Farm Losses, Farm Losses and Limited Partnership Losses - Their Composition and Deductibility in Computing Taxable Income.

Note
You may want to carry back your 1996 non-capital or farming and fishing loss to your 1993, 1994, or 1995 return. To do this, use the Form T1A,Request For Loss Carry-Back, that is in yourFarming Guideor yourFishing Guide, or get one from us. Attach a completed copy to your return. Do not file an amended return for the year or years you want to apply the loss.

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. For details, get the income tax guide calledCapital Gains.

Note
If you incurred a net capital loss in 1996, and you want to apply it against taxable capital gains you reported on your 1993, 1994, or 1995 return, get Form T1A,Request for Loss Carry-Back. Attach a completed copy to your return. Do not file an amended return for the year or years you want to apply the loss.

Line 254 - Capital gains deduction

You can 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 the income tax guide calledCapital Gains.

Line 255 - Northern residents deductions

To make your claim, use Form T2222,Northern Residents Deductions - 1996. If you were allowed this claim on your 1995 return, and you still lived in a prescribed zone in 1996, we will mail the form to you at the address we have on file.

If you were not allowed these deductions last year, or if you do not receive Form T2222 by late February, you can get a copy from us. For a list of the areas that qualify, get Form T4039,Northern Residents Deductions - Places in Prescribed Zones.

Line 256 - Additional deductions

Employment with a prescribed international organization

You can claim a deduction for your net employment income from certain international organizations, such as the United Nations and its Specialized Agencies, that you reported on this return. Net employment income is your employment income from these agenciesminusthe related employment expenses that you are claiming.

Income exempt under a tax treaty

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

Note
You can deduct the amount of U.S. social security benefitsyou reported on line 115, because it is tax-free in Canada. However, you cannot claim any credit for U.S. tax withheld on these benefits.

Vow of perpetual poverty

If you are a member of a religious order and have taken a vow of perpetual poverty, you can deduct the amount of earned income and pension benefits that you have given to the order. Attach a letter from your order or your employer stating that you have taken a vow of perpetual poverty.