T5 Return of Investment Income

T5 Return of Investment Income

  • Taxable amount of eligible dividend:

    For eligible dividends, the gross-up rate is 38 percent, as of 2013. Therefore, $138 is the amount you would include, as income, on your tax return. For ineligible dividends, the gross-up rate is 18 percent, for dividends paid after 2013 (the rate is 25 percent for the year 2013 and prior), the CRA reports.

  • Dividend tax credit:

    BREAKING DOWN ‘Dividend Tax Credit’ The dividends an individual receives from Canadian corporations are “grossed up” by legislation percentage.

  • Interest:

    Net interest income is the difference between the revenue that is generated from a bank’s assets and the expenses associated with paying out its liabilities. A typical bank’s assets consist of all forms of personal and commercial loans, mortgages and securities. The liabilities are the customer deposits.

  • Capital gain:

    A capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was greater than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property.