Module 10B: Introduction to Woodlot - Income Tax and Estate Planning

Appendix 5 - End Notes Referred to in Text, Tax Guides, Interpertation Bulletins and Forms

End Notes
1.   Income Tax Act, subsection 248(1)
2.   Interpretation Bulletin IT-373R2, paragraph 14
3.   Interpretation Bulletin IT-373R2, paragraph 11
4.   Income Tax Act, paragraph 19(1)(a)
5.   Interpretation Bulletin IT-373R2, paragraph 26
6.   CRA Guide RC-4409, Methods of keeping records 
7.   CRA Guide RC-4409, Requirements for record
8.   CRA Guide RC-4409, What additional records do corporations have to keep
9.   Income Tax Act, paragraph 12(1)(x)          
10. Income Tax Act, subsections 13(7.4) and 12(2.2)
11. Income Tax Act, section 127.5
12. Income Tax Act, regulations section 7400
The CRA publishes “Tax Guides” and “Interpretation Bulletins” to provide information to assist taxpayers with tax compliance requirements as well as document their position with respect to technical matters. These documents can be found on CRA’s website at A sample of publications that may be of interest to woodlot owners follows:

Tax Guides
2008 General Tax Guide
2008 Business and Professional Income Tax Guide
2008 Pension and RRSP Tax Guide
2008 Farming Income Tax Guide
2008 Employers Guide to Payroll Deductions
2008 Employers Guide to Payroll Deductions - Taxable Benefits
2008 T5 Guide - Return of Investment Income
2008 T2 Corporation Income Tax Guide
2008 Corporation Instalment Guide
2008 Capital Gains Tax Guide
2008 Farming Income and the AgriStability and AgriInvest Programs Guide
2008 Preparing Returns for Deceased Persons 

Interpretation Bulletins
IT-79R3  Capital cost allowance – Buildings or other structures

IT-128R  Capital cost allowance – Depreciable property

IT-218R  Profit, capital gains and losses from the sale of real estate, including farmland and inherited land and conversion of real estate from capital property to inventory and vice versa

IT-220R2  Capital cost allowance - Proceeds of disposition of depreciable property

IT-232R3  Losses – Their Deductibility in the Loss Year or in Other Years

IT-234  Income of deceased persons - Farm crops

IT-268R4  Inter-vivos transfer of farm property to a child

IT-285R2  Capital cost allowance – General comments

IT-287R2  Sale of inventory 
IT-322R  Farm losses

IT-349R3  Intergenerational transfers of farm property on death

IT-373R2  Woodlots

IT-425  Miscellaneous farm income

IT-433R  Farming or fishing - Use of cash method

IT-478R  Capital cost allowance - Recapture or terminal loss

IT-485  Cost of cleaning or levelling land

IT-501  Capital cost allowance – Logging assets

IT-526  Farming - Cash method inventory adjustments

Forms that would be commonly filed by a woodlot owner carrying on business as a proprietor or partner are:

T1 General  Federal and Nova Scotia Individual Income Tax Return
Schedule 1  Detailed Tax Calculation
Schedule 2  Amounts Transferred From Your Spouse
Schedule 3  Capital Gains or Losses
Schedule 4  Statement of Investment Income
T2125  Statement of Business Income and Expenses
T2038  Investment Tax Credit - Individuals
T2042  Statement of Farming Income
CCA  Summary of Capital Cost Allowance
Donations  Charitable Donations

Forms that would be commonly filed by corporations (in addition to financial statements for the business) include:

T2  Corporation Income Tax Return
S1  Reconciliation of Net Income Per Financial Statements With Net Income For Federal Income Tax Purposes
S2  Charitable Donations
S4  Continuity of Losses Carried Forward
S8  Summary of Capital Cost Allowance
S31  Investment Tax Credit - Corporation

In addition, employers would be required to file:

T4 Summary  Summary of Remuneration Paid

T4 Supplementary  Statement of Remuneration Paid