Marginal note:Employment expenses
1 Where the spouse is an employee, the spouse’s applicable employment expenses described in the following provisions of the Income Tax Act are deducted:
(a) [Repealed, SOR/2000-337, s. 8]
(b) paragraph 8(1)(d) concerning expenses of teacher’s exchange fund contribution;
(c) paragraph 8(1)(e) concerning expenses of railway employees;
(d) paragraph 8(1)(f) concerning sales expenses;
(e) paragraph 8(1)(g) concerning transport employee’s expenses;
(f) paragraph 8(1)(h) concerning travel expenses;
(f.1) paragraph 8(1)(h.1) concerning motor vehicle travel expenses;
(g) paragraph 8(1)(i) concerning dues and other expenses of performing duties;
(h) paragraph 8(l)(j) concerning motor vehicle and aircraft costs;
(j) paragraph 8(1)(n) concerning salary reimbursement;
(k) paragraph 8(1)(o) concerning forfeited amounts;
(l) paragraph 8(1)(p) concerning musical instrument costs; and
(m) paragraph 8(1)(q) concerning artists’ employment expenses.
Marginal note:Child support
2 Deduct any child support received that is included to determine total income in the T1 General form issued by the Canada Revenue Agency.
Marginal note:Spousal support and universal child care benefit
3 To calculate income for the purpose of determining an amount under an applicable table, deduct
Marginal note:Special or extraordinary expenses
3.1 To calculate income for the purpose of determining an amount under section 7 of these Guidelines, deduct the spousal support paid to the other spouse and, as applicable, make the following adjustment in respect of universal child care benefits:
(a) deduct benefits that are included to determine the spouse’s total income in the T1 General form issued by the Canada Revenue Agency and that are for a child for whom special or extraordinary expenses are not being requested; or
(b) include benefits that are not included to determine the spouse’s total income in the T1 General form issued by the Canada Revenue Agency and that are received by the spouse for a child for whom special or extraordinary expenses are being requested.
Marginal note:Social assistance
4 Deduct any amount of social assistance income that is not attributable to the spouse.
Marginal note:Dividends from taxable Canadian corporations
5 Replace the taxable amount of dividends from taxable Canadian corporations received by the spouse by the actual amount of those dividends received by the spouse.
Marginal note:Capital gains and capital losses
6 Replace the taxable capital gains realized in a year by the spouse by the actual amount of capital gains realized by the spouse in excess of the spouse’s actual capital losses in that year.
Marginal note:Business investment losses
7 Deduct the actual amount of business investment losses suffered by the spouse during the year.
Marginal note:Carrying charges
8 Deduct the spouse’s carrying charges and interest expenses that are paid by the spouse and that would be deductible under the Income Tax Act.
Marginal note:Net self-employment income
9 Where the spouse’s net self-employment income is determined by deducting an amount for salaries, benefits, wages or management fees, or other payments, paid to or on behalf of persons with whom the spouse does not deal at arm’s length, include that amount, unless the spouse establishes that the payments were necessary to earn the self-employment income and were reasonable in the circumstances.
Marginal note:Additional amount
10 Where the spouse reports income from self-employment that, in accordance with sections 34.1 and 34.2 of the Income Tax Act, includes an additional amount earned in a prior period, deduct the amount earned in the prior period, net of reserves.
Marginal note:Capital cost allowance for property
11 Include the spouse’s deduction for an allowable capital cost allowance with respect to real property.
Marginal note:Partnership or sole proprietorship income
12 Where the spouse earns income through a partnership or sole proprietorship, deduct any amount included in income that is properly required by the partnership or sole proprietorship for purposes of capitalization.
Marginal note:Employee stock options with a Canadian-controlled private corporation
13 (1) Where the spouse has received, as an employee benefit, options to purchase shares of a Canadian-controlled private corporation, or a publicly traded corporation that is subject to the same tax treatment with reference to stock options as a Canadian-controlled private corporation, and has exercised those options during the year, add the difference between the value of the shares at the time the options are exercised and the amount paid by the spouse for the shares, and any amount paid by the spouse to acquire the options to purchase the shares, to the income for the year in which the options are exercised.
Marginal note:Disposal of shares
(2) If the spouse has disposed of the shares during a year, deduct from the income for that year the difference determined under subsection (1).
Marginal note:Split-pension amount
14 If a spouse is deemed to have received a split-pension amount under paragraph 60.03(2)(b) of the Income Tax Act that is included in that spouse’s total income in the T1 General form issued by the Canada Revenue Agency, deduct that amount.
- SOR/97-563, ss. 12 to 14;
- SOR/2000-337, ss. 8 to 11, 12(E);
- SOR/2001-292, s. 1;
- SOR/2007-59, ss. 3, 4;
- SOR/2009-181, s. 1.
- Date modified: