Leave a commentAmounts which are not required to be included in income for tax purposes, so are not reported on a personal tax return, include:
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Guaranteed Income Supplements (GIS) for Canadian seniors, and the Allowance |
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GST/HST credits |
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Canada child tax benefit payments and related provincial and territorial child benefits and credits |
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Disability insurance proceeds, depending on how the premiums were paid. |
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Most gifts and inheritances |
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Lottery winnings and raffle prizes, unless the circumstances deem that the proceeds are considered income from employment, business or property, or a prize for achievement. For instance, prizes from employer-promoted contests could be considered employment income. See IT-213R Prizes from lottery schemes, pool system betting and giveaway contests. The cost basis of property which has been won as a prize in connection with a lottery scheme is deemed by s. 52(4) of the Income Tax Act (ITA) to be the fair market value at the time it is won. This means that there is no capital gain if the prize is subsequently sold, unless it is sold for more than the amount deemed to be the cost basis. If a person decided to sell the right to the prize, (e.g., sell a winning $1 million lottery ticket for $900,000), s. 40(2)(f) of the ITA deems any gain or loss from this transaction to be nil. |