Category: Definitions

An annuitant of an Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) is the person for whom the plan or fund provides a retirement income.

A registered retirement income fund is a tax deferred retirement plan registered with the Canada Revenue Agency (CRA). It is usually used to hold property transferred from an RRSP and RPP. Establishing a RRIF can be done at anytime, but must be done no later than the year the annuitant turns 71.

The CCA rate for Class 10 is 30%. The followings belong to Class 10:

Spousal or common-law partner RRSP is an RRSP that you establish to pay yourself income at maturity, but that your spouse or common-law partner contributes to.

Class 8 with a CCA rate of 20% includes certain property that is not included in another class. 

Class 1 includes most buildings acquired after 1987, unless they specifically belong in another class.

Generally, when a good is sold, the supply of the good is deemed to have been made in a particular province, if legal delivery of the good to the purchaser occurs in that province.

The half-year rue restricts the capital cost allowance (CCA) on net acquisitions (consisting of additions for the year less the lesser of original cost and proceeds of disposition for the year) in the year to one-half of the normal claim.

Inclusion rate is the rate used to determine taxable capital gains and allowable capital losses. For example, if the inclusion rate is 1/2 (50%), you multiply your capital gain for the year by this rate to determine your taxable capital gain. Similarly, you multiply your capital loss for the year by 1/2 to determine your allowable…

A limited partnership is a partnership that gives its partners limited responsibilities that are similar to those given to shareholders of a corporation.