Line 206 - Pension adjustment amount

If you were a member of a pension plan or a deferred profit-sharing plan (DPSP), there may be a pension adjustment (PA) amount in box 52 of your T4 slip or box 34 of your T4A slip. This amount represents the value of the benefit you earned in 1995 under a pension plan or DPSP.

Do not include the 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 1996 registered retirement savings plan (RRSP) deduction limit, which we will show on your Notice of Assessment for 1995. 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 1995, you may have to enter an amount on this line. For details, contact us.

Line 207 - Registered pension plan contributions

The amount you contributed to your registered pension plan (RPP) is shown in box 20 of your T4 slip, box 32 of your T4A slip, or on your union receipt. Add together all of the amounts you contributed to your RPPs.

You can deduct the total amount unless it is more than $3,500 and your information slip shows a past-service amount for a period before 1990. If this is the case, get the income tax guide called RRSP and Other Registered Plans for Retirement for 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.

Receipts - With the exception of your T4 and T4A slip, do not include your receipts with your return. However, 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
• 1995 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 called RRSP and Other Registered Plans for Retirement.

Maximu m you can deduct

The maximum you can deduct on line 208 is the lesser of:

• your "1995 RRSP deduction limit" plus "income eligible for transfer" that you received in 1995 and transferred to an RRSP before March 1, 1996; and
• the total of the RRSP contributions you made from March 2, 1995, to February 29, 1996, plus the RRSP contributions you made from January 1, 1991, to March 1, 1995, that were not allowed as a deduction on your returns for the years 1990 to 1994.

Contributions you made include amounts you contributed to your own RRSP or your spouse's RRSP based on your "1995 RRSP deduction limit." They also include eligible amounts from lines 115, 129, and 130 of your 1995 return that you transferred to your own RRSP. However, contributions you made do not include any 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 page 18.

You cannot contribute any amounts to your own RRSP after the end of the year in which you turn 71. As well, you cannot contribute any amounts to your spouse's RRSP after the end of the year in which your spouse turns 71.

Receipts - Attach to your return official receipts that confirm the amount you are deducting, unless you included the receipts on a previous return.

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.

1995 RRSP deduction limit

We will show your 1995 RRSP deduction limit on your latest Notice of Assessment, Notice of Reassessment, or on Form T1028, Your RRSP Deduction Limit Statement for 1995.

If you do not have your notice or Form T1028, you can determine your limit for 1995 by calling T.I.P.S. (RRSP), one of our automated T.I.P.S. services, or by contacting your tax services office.

If you would like to calculate your 1995 RRSP deduction limit, get the income tax guide called RRSP 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 your unused RRSP deduction room. The RRSP deduction limit shown on your Notice of Assessment includes any unused RRSP deduction room that you can carry forward.

Income eligible for transfer

A transfer is an RRSP contribution you make based on eligible income you received. You can claim an RRSP deduction for eligible amounts you received and included in income on your 1995 return, and that you transferred to your own RRSP before March 1, 1996. This contribution, called a transfer, is in addition to any RRSP contribution you can make based on your "1995 RRSP deduction limit."

Only certain types of income you received and reported on lines 115, 129, or 130 of your 1995 return can be transferred to your own RRSP. For example, if you received a retiring allowance in 1995, you can make an RRSP contribution, called a transfer, based on the eligible part of that income. The income tax guide called RRSP and Other Registered Plans for Retirement gives more details on the income that is eligible for transfer.

Note

If you are deducting an RRSP contribution you made based on eligible income you received, 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 35 for details.

Repayments under the Home Buyers' Plan (HBP)

If you withdrew funds from your RRSP under the HBP before March 2, 1994, you have to make your first annual repayment by February 29, 1996. If you withdrew your funds after March 1, 1994, and before January 1, 1995, you have to make your first annual repayment by March 1, 1997. If you withdrew funds in 1995, you have to make your first annual repayment by March 1, 1998. You cannot deduct on your return any RRSP contribution you designate as an HBP repayment on Schedule 7.

Repayments for 1995 - You have to attach Schedule 7 to your 1995 return. Enter on Schedule 7 the total of the contributions you made from March 2, 1995, to February 29, 1996, that you want us to consider as repayments under the HBP for 1995.

Note

If you made contributions to your own RRSP from January 1, 1995, to March 1, 1995, that you want to designate as a 1995 repayment under the HBP, contact us.

If you have not made an HBP repayment for 1995, or you repay less than the required repayment, you may have to include an amount in income. See line 129 for details.

If you are participating in the HBP and withdrew funds before March 2, 1994, you should have received a repayment statement from us in the fall of 1995. The statement will give the amount you have to repay for 1995, and will confirm the total amount you have repaid to date.

If you would like more information, get the pamphlet called Home Buyers' Plan.

Sch edule 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 for you to complete Schedule 7, if required, since we will use this information to verify any deduction for unclaimed RRSP contributions on your future returns. The information you provide on this schedule will also allow us to tell you, on your Notice of Assessment for 1995, your unclaimed RRSP contributions available for deduction on your 1996 return.

Unclaimed RRSP contributions - You may have made a contribution to your own RRSP or your spouse's RRSP 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 1994, you should have filed a completed Schedule 7 with your 1994 return. If you did not, you should submit a completed copy of a 1994 Schedule 7 to your tax centre. See "You would like to change your return - what should you do?" on page 7 for details.

If you made contributions to your own RRSP or your spouse's RRSP from January 1, 1991, to March 1, 1995, that you have not deducted, and you did not file a 1994 return, contact us.

If you do not have your 1994 Notice of Assessment or Notice of Reassessment, you can determine if you have unclaimed RRSP contributions for 1994 by calling T.I.P.S. (RRSP), one of our automated T.I.P.S. services, or by contacting us.

Home Buyers' Plan - See the heading "Repayments under the Home Buyers' Plan (HBP)" on page 19 for more details.

Transfers - See the heading "Income eligible for transfer" on page 18 if you need more information on transfers.

No te

You cannot claim an RRSP deduction for certain RRSP contributions you made. When completing Schedule 7, do not include any of the following five amounts:

• Any payments that were directly transferred to your own RRSP for which you did not receive an information slip.
• Any RRSP contribution you made after March 1, 1995, that was refunded to you or your spouse because it was an undeducted contribution. Report the refund on line 129 of your 1995 return. If you have a Form T3012A, Tax Deduction Waiver on the Refund of Your Undeducted RRSP Contributions, approved by the Department for that amount, attach a copy to your return and claim a deduction at line 232. Otherwise, complete and attach Form T746, Calculating Your Deduction for Refund of Undeducted or Excess RRSP Contributions, to determine if you can claim this deduction.
• If, after March 1, 1995, you made contributions to your RRSP or your spouse's RRSP, less than 90 days before you or your spouse withdrew funds from that RRSP under the Home Buyers' Plan, part or all of those contributions may not be deductible. For more details, get the income tax guide called RRSP and Other Registered Plans for Retirement or the pamphlet called Home Buyers' Plan.
• The excess part of a direct transfer of an RPP lump-sum payment to an RRSP or registered retirement income fund (RRIF) that you are including on line 130 of your 1995 return, and are 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).
• The part of an RRSP withdrawal that you recontributed to your RRSP and deducted on line 232. This would have happened if you inadvertently withdrew more RRSP funds than you needed to obtain past-service benefits under an RPP.

Line 209 - Saskatchewan Pension Plan contributions

You may be able to deduct your contributions for 1995 to the Saskatchewan Pension Plan (SPP). You can deduct the least of the following three amounts:

• $600;
• the total contributions you paid to the SPP from January 1, 1995, to February 29, 1996 (excluding any contributions that you deducted on your 1994 return); or
• the amount from line 3 of the chart below.

Note

You can only claim contributions that were made to your own plan. Only your spouse can claim contributions that you made to your spouse's plan.

Line 212 - Annual union, professional, or like dues

Enter on line 212 the total of the following:

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

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

Tax Tip

If the amount you are deducting includes GST, you may be eligible for a rebate of the GST you paid. See line 457 for details.

Receipts - With the exception of your T4 slip, do not include your receipts with your return. However, you have to keep them in case we ask to see them.

If you need 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.

Line 214 - Child care expenses

You may be entitled to claim child care expenses if you or your spouse paid someone to look after your children so that you or your spouse could:

• earn income from employment or self-employment;
• take an occupational training course for which a training allowance under the National Training Act is received; or
• conduct research or similar work for which a grant is received.

To make your claim, get Form T778, Calculation of Child Care Expenses Deduction for 1995, and Form T1065, Child Care Expenses Information Sheet for 1995, from us. However, if you claimed child care expenses on your 1994 return, you should find a copy of this form and information sheet included with 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 can claim the expenses you paid for attendant care (up to $5,000) if all of the following conditions apply:

• You are entitled to claim the disability amount (line 316).
• The expenses were paid to a person who is not your spouse and is 18 years of age or older.
• You paid the expenses for care in Canada that enabled you to earn income from employment or self-employment, take an occupational training course for which you received a training allowance under the National Training Act, or conduct research or similar work for which you received a research grant.
• The expenses are not claimed as medical expenses for 1995 or any other year.

To calculate the amount you can claim, complete Form T929, Attendant Care Expenses.

Note

If you lived outside Canada but you maintained residential ties (see the definition on page 5) with Canada, you may be able to claim the expenses you paid for care outside Canada, provided all the other conditions apply. For more details, contact us.

Receipts - Do not include your receipts or Form T929 with your return. However, 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 that happens in certain situations. 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 called Capital Gains for details on how to complete line 217 and line 228, which is located to the left of line 217.

Line 219 - Moving expenses

If you moved in 1995, you may be able to deduct your moving expenses from income you earned at the new location. You can deduct your expenses if all of the following apply:

• You moved to start a job or a business, or you moved to attend full-time post-secondary courses at a college or other educational institution.
• Your new home is at least 40 kilometres closer to your new workplace or school than your previous home.
• Your move was from one place in Canada to another place in Canada. However, if you were a factual resident, you may also qualify to claim expenses for a move outside Canada.

If you moved in 1994 but were unable to claim all your moving expenses in that year, you can claim the remaining expenses against income you earned in 1995 at the new location.

How to claim

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

Receipts - Do not include your receipts or Form T1-M with your return. However, you have to keep them in case we ask to see them.

Line 220 - Alimony or maintenance paid

Enter on this line the deductible alimony or maintenance payments you made in 1995.

In most situations, your alimony or maintenance payments are deductible, if all of the following conditions are met:

• When you made the payments, you were living apart, and you continued to live apart for the rest of the year, from the person to whom or on whose behalf you made the payments.
• The payments were made under a court order or written agreement.
• The payments were made to maintain your spouse or former spouse, 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.

Note

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

Receipts - Do not include your receipts or cancelled cheques, or your court order with your return. However, keep them in case we ask to see them.

Tax Tip

If your court order or written agreement is signed in 1995, and it mentions the payments you made in 1994, you can ask us to adjust your 1994 return. See the "After you file" section on page 7 of this guide.

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;
• accounting fees for recording investment income;
• investment counsel fees (see Interpretation Bulletin IT-238, Fees Paid to Investment Counsel); and
• administration fees charged for your self-directed RRSP if you had to pay them to the trustee of your RRSP. For more information, get the income tax guide called RRSP and Other Registered Plans for Retirement.

You cannot deduct on line 221 any brokerage fees and commissions you had to pay because you sold securities. These expenses are considered "outlays and expenses" on Schedule 3 when you calculate your capital gain or capital loss.

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 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 1995, and all or a portion of the borrowed money has been lost due to a decline in the value of the property, 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 49 CSBs through payroll deductions. The total amount deducted from his pay for the bond was $1,025.64 ($1,000 face value of the bond plus $25.64 in interest). Michael can claim the $25.64 he paid on line 221.

Policy loan interest - To claim interest you paid during 1995 on a policy loan made to earn interest, have your insurer complete Form T2210, Verification of Policy Loan Interest by the Insurer, before May 1, 1996. Keep the completed form in case we ask to see it.

Line 224 - Exploration and development expenses

If you invested in a petroleum, natural gas, or mining venture in 1995, 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 which the principals of the venture give you.
• Attach to your return either a copy of the statement that gives details of the deduction or a T5013 slip.

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 your ratio to the total partnership), and give the name and address of the fund.

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 the Businesses number at your tax services office. See the telephone listings for "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 a non-taxable allowance for the expenses.

Most employees cannot claim 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 called Employment Expenses contains the forms you will need, and describes 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 called Employment Expenses.

Repayment of salary or wages - You can deduct salary or wages you reported as income on this or a previous year's return and which you repaid in 1995. 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, except for Form T777, for any amounts deducted at line 229 with your return. However, you have to keep them in case we ask to see them.

Tax Tip

If the amount you are deducting includes GST, you may be eligible for a rebate of the GST you paid. See line 457 for 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 1995 that you already reported as income, you may be able to deduct them on your 1995 return. Attach receipts or other documents showing the amounts you paid. You can claim repayments of:

• Unemployment Insurance (UI) benefits you paid to Human Resources Development Canada (HRDC) (see the explanation that follows);
• Old Age Security pension you paid to HRDC;
• Canada Pension Plan benefits or Quebec Pension Plan benefits;
• retiring allowances (severance pay);
• refund interest (see the explanation that follows);
• scholarships, fellowships, and bursaries;
• allowances under the National Training Act;
• research grants;
• benefits under the Labour 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.

UI benefits - You may have received more benefits than you should have, and repaid them to HRDC:

• HRDC may have reduced the UI benefits paid to you 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 the amount shown on this receipt on line 232. 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, as explained at line 121 in this guide, you have to report the interest in the year you received it. If we then reassessed your return and you had to repay some of the refund interest in 1995, you can deduct the amount you repaid.

Legal and accounting fees

You can deduct the legal fees you paid:

• for advice or assistance in objecting to or appealing an assessment under the Income Tax Act, the Unemployment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan, plus any related accounting fees (although you have to reduce your claim by any award or reimbursements you received for such expenses);
• to collect late alimony or maintenance payments that will be included in your income;
• to get a court order when you have to sue your spouse or former spouse for maintenance payments in a family court; and
• to collect a retiring allowance or pension benefit. However, you can only claim as much as you received in retiring allowance or pension income in the year minus any 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, you cannot claim:

• legal costs to obtain a divorce or separation, to establish a right to alimony or maintenance payments, or to establish custody of a child; or
• fees to have someone complete your tax return, unless you have income from a business or property. To qualify, accounting services also have to be a part of the normal operations of your kind of business or property.

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

Depletion allowances

If you are claiming a depletion allowance, complete Part VI of Schedule 4. Attach a statement showing how you arrived at your claim.

Other amounts you can deduct

Generally, you can also deduct the following on this line:

• a refund to you or your spouse in 1995, of an undeducted RRSP contribution that you made after 1990 (attach 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 motion picture 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.

Line 235 - Social benefits repayment

Unemployment Insurance (UI) benefits - If you received UI benefits in 1995 and your net income before adjustments (line 234) is more than $63,570, 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 or net federal supplements 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

Under proposed legislation, starting in July 1996, tax will be withheld from your monthly OAS amount if you have an OAS repayment for 1995. The amount deducted each month will equal the amount you calculate at line 11, of Chart 2 below, divided by 12, or the amount of your monthly benefit, whichever is less. The amount deducted will be shown as "income tax deducted" in box 22 of your 1996 T4A(OAS) or T4A(P) slip, and will reduce the amount of tax you owe when you file your 1996 return. For more details, contact us.

Line 237 - Accumulated forward-averaging amount withdrawal

If you made a forward-averaging election in a previous year, you may wish to bring some or all of your accumulated averaging amount into income on your 1995 return.

To bring some or all of your accumulated averaging amount into income on your 1995 return, complete Form T581, Forward Averaging Tax Credits, and attach it to your return. You have to file your return and Form T581 by the filing due date. You can get Form T581 from us.

Note

If you want to withdraw previously averaged amounts, the last return on which you will be able to do so will be on a return for the 1997 taxation year.

Line 248 - Employee home relocation loan deduction

Generally, you can enter on line 248 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 allowable deduction for 1995, call the Businesses number in the telephone listings for "Revenue Canada" in the Government of Canada section of your telephone book.

Line 249 - Stock option and shares deductions

Enter on line 249 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

Enter 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 $53,215 and you reported net federal supplements on line 146, you may not be entitled to enter the total amount from line 147 as a deduction on line 250. 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 1995 T5013 slip on your 1995 return.

Line 252 - Non-capital losses of other years

Enter on line 252 the amount of your unapplied non-capital losses from 1988 to 1994, or your unapplied farming and fishing losses from 1985 to 1994, that you want to apply in 1995. 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 called Farming Income or the guide called Fishing Income for 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

If you want to carry back your 1995 non-capital or farming and fishing loss to your 1992, 1993, or 1994 return, complete Form T1A, Request For Loss Carry-Back. Include this form with your 1995 return. Do not file an amended return for the year or years you want to apply the loss. You can get Form T1A from us.

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 called Capital Gains.

Note

If you incurred a net capital loss in 1995, and you want to apply it against taxable capital gains you reported on your 1992, 1993, or 1994 return, complete Form T1A, Request for Loss Carry-Back. Include this form with your 1995 return. Do not file an amended return for the year or years you want to apply the loss. You can get Form T1A from us.

Line 254 - Capital gains deduction

You can no longer claim a capital gains deduction for gains realized after February 22, 1994, other than qualified small business corporation shares and qualified farm property. However, if you owned capital property or eligible capital property at the end of February 22, 1994, and you have not used up all of your $100,000 capital gains exemption, there is a special election that may be available to you. This election will allow you to report a capital gain that accrued before February 23, 1994, so that you can benefit from the unused part of your $100,000 capital gains exemption. For more details, contact us, or get the income tax guide called Capital Gains and the package called Capital Gains Election Package. These publications have the information and forms you will need to determine and calculate your deduction.

Line 255 - Northern residents deductions

To make your claim, get a copy of the income tax guide called Northern Residents Deductions. The guide lists the areas that qualify, and includes a copy of the form you need to make your claim.

If you claimed northern residents deductions on your 1994 return, and you may qualify to claim this deduction for 1995, we will mail the guide to you at the address we have on record. If you did not claim these deductions last year, or if you do not receive your guide by late March, you can get a copy from us.

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 agencies minus the related employment expenses that you are claiming.

Income exempt under a tax treaty

You can deduct foreign income you included on your return that 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.

If you reported alimony or child support payments on line 128 that you received from a resident of another country, which are tax-free in Canada because of a tax treaty, you can deduct them on line 256. To find out if the alimony or child support payments you received are tax-free, contact us.

If you reported U.S. social security benefits on line 115, you can deduct 50% of these benefits on line 256, since that part is tax-free in Canada.

Note

The rules for reporting U.S. social security will change in 1996. See line 115 for details.

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.