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 www.cra-arc.gc.ca. 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
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