| 1.
LAND TRANSFER TAX & LTT REFUND |
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2.
CMHC MORTGAGE INSURANCE PREMIUMS |
The long form for calculating LTT is:
0.5% on the first $55,000; plus
1.0% from $55,001 to $250,000; plus
1.5% from $250,001 to $400,000; plus
2.0% over $400,000.
The short form calculation is:
$55,001 to $250,000 Price x .01 less $275;
$250,001 to $400,000 Price x .015 less $1,525
$400,001 plus Price x .02 less $3,525
The LTT refund is available for first-time
buyers of new homes for personal usage. The first $2,000 of
LTT , for homes costing up to $227,500, is refundable for
offers signed after April 1, 1999.
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Based on ratio of mortgage to total
value:
Up to 65% - 0.50%
Up to 75% - 0.75%
Up to 80% - 1.25%
Up to 85% - 2.00%
Up to 90% - 2.50%
Up to 95% - 3.75%
The total of the premiums may be added to the principal amount
of the mortgage.
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3.
HOME BUYERS PLAN REPAYMENTS
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4.
CITY OF TORONTO MILL RATES |
| Repayments start 2 years after withdrawal
over 15 years. Annual amounts:
Loan amount Repayment
$20,000 $1,333
$17,500 $1,167
$15,000 $1,000
$12,500 $ 834
$10,000 $ 667
$ 7,500 $ 500
$ 5,000 $ 333
Non-payment leads to an income inclusion. |
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Property taxes are a product
of:
Value of assessment X mill rate.
Current Value Assessment (CVA) was introduced in 1998. The
mill rate dropped from 47% of the very low historical property
valuations to about 1.26% of 1998 current value assessments.
Year Mill Rate
1997 47% (Historical system)
1998 1.2597% (CVA)
1999 1.2137% (CVA)
2000 1.2137% (CVA)
2001 1.073544% (CVA)
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| 5.
AUTOMOBILE CAPS |
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6.DEPRECIATION
- CAPITAL COST CLASSES |
| Purchase. Maximum of
$30,000 plus GST and PST may be depreciated for a year 2003
purchase. Reduce this by any GST claimed as an ITC. (For cars
used 90% or greater for business claim full GST on all auto
expenses as an ITC.)
Auto Loan. Interest cap of $10 per day.
Lease. Cap of $800 per month plus taxes.
[Deductibility is reduced if 85% of list price exceeds luxury
cap of $30,000. ] |
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Only ½ of rate allowed in year purchased.
Class 10.1* Car 30% rate
Class 10 Car 30% rate
Class 10 Computer 30% rate
Class 12 Software 100% rate
Class 8 Equip./Furniture 20% rate
* For cars costing more than $30,000. Only
$30,000 may be depreciated and no terminal loss may be claimed.
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| 7.
GST REMITTANCE CALCULATIONS |
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8.
PERSONAL INCOME TAX & GST QUARTERLY INSTALLMENTS GST |
Quick Method. For agents
with commissions and GST added together totaling no more than
$200,000 in a year. Pay 4% on first $30,000, then 5% on excess.
In addition, claim the Input Tax Credits (ITCs) on capital
purchases.
Simplified Method. For those with commissions only
up to $500,000. To segregate out the GST multiply the expense
by 7/107 or take 6.542% of the expense. The total of GST paid
is deducted from GST collected. You recover all of your GST
paid.
Detailed Method. For those with commissions exceeding
$500,000. GST must be segregated from every expense and commission.
[Typical non-GST expenses: Insurance and banking costs and
charges, wages and expenses outside Canada.]
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Installments are required
if prior year remittance exceeds $1,500. Due one month after
each of Mar. 31, Jun. 30, Sep. 30, Dec. 31. Installments are
calculated as ¼ of the prior year total remittance.
Personal Tax. Includes Federal and Ontario taxes and CPP premiums.
Installments are required if the total figure of these amounts
exceeds $2,000 in the prior year. Due on Mar. 15; Jun. 15,
Sep. 15, Dec. 15.
[Interest is charged on any deficiency on
installments running from the due date. Taxpayers may adjust
installments down to reflect decreased revenues but risk interest
charges if they under-remit.] |
9.
C.C.R.A. INTEREST & PENALTIES |
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10.
2004 PERSONAL INCOME TAX RATES |
Interest. A 'prescribed
rate' of about prime plus 4% is set for personal taxes and
GST for late or deficient payments. The rate has remained
at 10% since April 1, 2000.
Note. A penalty of 50% may be levied if the interest
assessed on late or deficient installments is $1,000 or greater.
Penalties. For late filing of personal taxes,
the base penalty is 5% plus 1% per month for 12 months or
a 17% maximum. For a second late filing within 3 years, the
base is 10% plus 2% per month for 20 months or a maximum of
50%. File on time. |
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(Provincial thresholds are
very slightly different than Federal thresholds but we are
treating them as identical.)
Personal
Tax Rates |
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Federal |
Ontario |
| 0 - $8,012 |
0% |
0% |
| $8,013 - $35,595 |
16% |
6.05% |
| $35,596 - $71,190 |
22% |
9.15% |
| $71,191 - $115,739 |
26% |
11.16% |
| over $115,739 |
29% |
11.16% |
[The combined rate from 71,000 to $115,000
is 37.16% due to the effect of Federal and Provincial surtaxes
and leads to a peak of 41% at over $115,000.]
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11.
2004 NON-REFUNDABLE TAX CREDITS
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12.
CLAWBACKS AND REDUCTIONS |
Type Dollar Value
Basic personal $8,012
Married $6,803
Married equivalency
(Single Parent) $6,803
Age 65 or over $3,912
Disability $6,000
Disabled dependant $3,500
Caregiver amount $3,500
[All are fully indexed and save taxes at only the lowest combined
rate of 22.20%.]
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Net Income of taxpayer/dependant affects:
OAS. 15% clawback at income of $55,309.
GST Credit. Reduces at $26,284.
Age Credit at 65. Reduces at rate of 15% for net income over
$26,284.
Medical Expense Credit. Deductibility
reduced by 3% of net income or first $1,678 of such expenses
for high earners.
Tuition/Education Transfer. $5,000 amount reduced by excess
of student net income over $7,412. |
