All About Tax

Home buyers’ plan (HBP) is a government program which allows you to borrow funds from your registered retirement savings plan (RRSP) tax free to buy or build your home.

A terminal occurs if, at the end of a fiscal year, when all assets in a class have been disposed of but a undepreciated Capital Cost (UCC) balance still remains in the pool.

Unused RRSP deduction room at the end of the year generally means your RRSP deduction limit for the year minus the amount you deducted for RRSP and SPP contributions for that year.

Retiring allowance, also called severance pay, is an amount you receive on or after retirement from an office or employment in recognition of long service.

Earned income is used to calculate your RRSP deduction limit. It generally includes: employment earnings net business income  net rental income taxable support (alimony) payments received, disability benefits received from Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).  The above income increases your RRSP deduction limit.

Eligible capital property may be broadly described as intangible capital property – property that does not physically exist but that gives you lasting economic benefits. Some examples of eligible capital property include goodwill, incorporation costs, customer lists, franchises, concessions, or licenses for an unlimited period.

Registered Pension Plan (RPP) is a pension plan that is set up by employer and registered by the Canada Revenue Agency (CRA). Funds are contributed by an employer, or by an employer and employees, to provide a pension to employees when they retire.

Unused RRSP contributions are the amount of your registered Retirement Savings Plan (RRSP) contributions that you could not deduct or have chosen not to deduct and that did not designate as an HBP or LLP repayment for any year.