Canadian Income Tax I
Personal income taxation under the Income Tax Act for the 2026 tax year: tax policy, sources of law, CRA administration and professional ethics, residence and the taxation of non-residents, the section 3 computation of net income, taxable income and federal tax, employment income, taxable benefits and the automobile benefit, stock options, employment deductions and CPP and EI, business income and the limits on deductions, capital cost allowance including the reinstated accelerated investment incentive, property income with the dividend gross-up, rental rules and attribution, capital gains, the superficial loss rule and reserves, the principal residence exemption, deemed dispositions on death and the lifetime capital gains exemption, registered plans, credits, the OAS recovery tax and the reformed AMT, and filing, instalments, assessments, objections and penalties, following one invented family to a complete return.
ACCT-351 Year 3 3 credits 12 lessons · 5 h 14 min
Offered by HSM University · Accounting
This is the Canadian version of this course. See the American version.
What you'll learn
- Explain the purposes, criteria and sources of Canadian income tax law, including the Income Tax Act, regulations, treaties, case law and CRA guidance, and the ethical duties of tax practitioners.
- Determine an individual's residence status, including factual, deemed and part-year residence, and explain how residents and non-residents are taxed.
- Compute net income, taxable income and basic federal tax using the section 3 ordering rules, Division C deductions and non-refundable credits.
- Determine employment income, including salary, taxable benefits, allowances and the automobile standby charge and operating benefit.
- Apply the rules for employee stock options, section 8 employment deductions, CPP, CPP2 and EI contributions.
- Distinguish business income from employment income, hobbies and capital gains, and compute business income for tax from accounting income.
- Compute capital cost allowance, including the half-year rule, the accelerated investment incentive, recapture and terminal losses.
- Compute property income from interest, dividends and rentals, apply the gross-up and dividend tax credit, interest deductibility rules and the attribution rules.
- Compute capital gains and losses, applying adjusted cost base averaging, the superficial loss rule, loss restrictions and reserves.
- Apply the principal residence exemption, deemed dispositions on gifts, change in use and death, the spousal rollover and the lifetime capital gains exemption.
- Apply other income inclusions, registered plan rules, subdivision e deductions, federal credits, the OAS recovery tax and the alternative minimum tax to a family.
- Prepare a complete individual federal computation and explain filing deadlines, instalments, assessments, objections, appeals and penalties.
Course content
12 lessons · 5 h 14 min total · final exam
- 1 The Canadian income tax system: law, policy and administration 28 min · quiz
- 2 Residency and liability for tax 27 min · quiz
- 3 Computing income, taxable income and tax 24 min · quiz
- 4 Employment income: salary, benefits and allowances 26 min · quiz
- 5 Employment income II: stock options, deductions and payroll contributions 26 min · quiz
- 6 Business income: what counts and what is deductible 26 min · quiz
- 7 Business income II: capital cost allowance 25 min · quiz
- 8 Property income: interest, dividends, rent and attribution 27 min · quiz
- 9 Capital gains I: dispositions, adjusted cost base and losses 26 min · quiz
- 10 Capital gains II: principal residence, deemed dispositions and the LCGE 27 min · quiz
- 11 Other income, deductions and tax credits 25 min · quiz
- 12 Filing, assessment, disputes and a complete return 27 min · quiz
- E Final exam 20 questions
Requirements
Recommended background. You can start any course at any time.
Description
Personal income taxation under the Income Tax Act for the 2026 tax year: tax policy, sources of law, CRA administration and professional ethics, residence and the taxation of non-residents, the section 3 computation of net income, taxable income and federal tax, employment income, taxable benefits and the automobile benefit, stock options, employment deductions and CPP and EI, business income and the limits on deductions, capital cost allowance including the reinstated accelerated investment incentive, property income with the dividend gross-up, rental rules and attribution, capital gains, the superficial loss rule and reserves, the principal residence exemption, deemed dispositions on death and the lifetime capital gains exemption, registered plans, credits, the OAS recovery tax and the reformed AMT, and filing, instalments, assessments, objections and penalties, following one invented family to a complete return.
Part of the Business stream, typically taken in year 3.