The data entered on information slips (the title, the issuer, the percentage held, the exchange rate and the amount) is automatically updated to the Statement of Investment Income, Carrying Charges, and Interest Expenses worksheet.
The Statement of Investment Income, Carrying Charges, and Interest Expenses worksheet also offers the possibility of entering an unlimited amount of data for which no information slip has been issued such as: dividends, interest and other investment income from Canadian sources, foreign source income, carrying charges and interest expenses.
Data is easily verified since all the required information is entered on the Statement of Investment Income, Carrying Charges, and Interest Expenses worksheet.
Compensatory dividend payments
Subsection 74.4(2) of the Act requires an individual who transfers or loans property to a corporation (other than a small business corporation) to include in income the amount by which interest at the prescribed rate on the loan exceeds the total of any interest actually received on the loan and 115% of any dividends received on shares issued for the transfer, where one of the main purposes of the transfer can reasonably be considered to be to reduce the income of the individual and to benefit a person who is a designated person in respect of the individual.
Interest and carrying charges
Enter interest expenses incurred to acquire certain tax shelters and limited/non-active partnership investments separately in Part III. Such expenses will be updated to Form T691 as part of the calculation of adjusted taxable income for minimum tax purposes.
See Also
Federal Income Tax and Benefit Guide - Lines 12000, 12100, 12200 and 22100