Canadian Financial, Real Estate and Mortgage Glossary

Taxes Terms

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accelerated capital cost allowance programme (ACCA)Acronym
accelerated cost recovery system (ACRS)United States
  ➥  A depreciation method used in US tax law.
accrual methodDefinition (Investments, Taxation, Financial-banking)
Business accounting in which you report income in the year you earned it and expenses in the year you incur them, rather than reporting income and expenses when you receive payment or when you pay the expenses. Under this method, if you built a deck and billed the client in December 1999, the amount you charged would be reported in 1999 as income even if you didn't get the payment until January 2000. If you own a business that maintains an inventory, you are required to use the accrual method.
active incomeDefinition (Taxation, Financial-banking)
Active income refers to wages, tips, and profits from your business or employment that you partake in. It also includes portfolio income such as interest and dividends, but you cannot usually offset active income with passive losses.
adjusted cost base (ACB)Canada
adjusted gross income (AGI)Acronym
advance corporation tax (ACT)Acronym
advance pricing agreement = advance pricing arrangement (APA)Acronym
Agence du Revenu du Canada (ARC)Company, Canada
  ➥  French acronym for Canada Revenue Agency.
Alberta Family Employment Tax Credit (AFETC)Alberta, Canada
A program funded by the Government of Alberta to help low to middle income working families provide for their children.
  ➥  Alberta tax credit.
alimonyDefinition (Taxation, Financial-banking, Legal-contracts)
Monthly payments received by an ex-spouse. Payments must be received continuously for one year to be counted toward qualifying income for a loan.
alternative minimum tax (AMT)Definition (Taxation, Financial-banking, Legal-contracts)
This tax primarily affects high-income taxpayers who shelter some of their income from tax through certain tax preference items or deductions. It is often referred to in tax publications as AMT and, if your income meets the limit, you have to recalculate your tax due based on the separate alternative minimum tax rates and tables.
  ➥  Form T691.
annual mortgage statementDefinition (Mortgages, Taxation)
A report sent to the borrower every year, detailing how much principal remains on the home loan and how much was paid in taxes and interest during the previous year.
anti money laundering and combating the financing of terrorism (AMLCFT)Acronym
anti-money laundering (AML)Acronym
anti-money laundering - combating the financing of terrorism (AML-CFT)Acronym
Anti-Money Laundering Information Database (AMLID)Acronym
anti-money laundering program (AMLP)Acronym
Many insurance and investment firms, with the assistance of regulatory organizations, have programs in place to help prevent money laundering. These programs are designed to recognize techniques and risks as well as to aid in the process of verification of clients and their accounts.
anti-money laundering regulation (AMLR)Acronym
area median gross income (AMGI)United States
  ➥  A US taxation term.
assessment rollsDefinition (Mortgages, Real-estate, Taxation)
Lists of taxable property.
assessmentsDefinition (Real-estate, Taxation, Legal-contracts)
Special and local taxes imposed upon property which benefits from an improvement that has been made in the vicinity.
assessor's parcel number (APN)Acronym
auditDefinition (Taxation, Financial-banking, Legal-contracts)
An examination of a taxpayer's income tax return or other transactions bearing tax consequences. Audits range from a simple letter from the agency to a detailed review of individual or business tax filings and records.
average effective tax rate (AETR)United States
average production worker (APW)Acronym
average tax rateDefinition (Taxation, Financial-banking)
The real rate of taxes you pay after taking into account the various federal tax brackets. There are different tax rates for different levels of income; you pay lower rates on the first part of your income, more on the later earnings. As you pass each income level, the money above that level is taxed at the next higher rate. Therefore, your average tax rate is less than the top rate you pay on a portion of income.
bad debtDefinition (Mortgages, Taxation, Financial-banking)
Money that cannot be collected is considered bad debt. Businesses can deduct bad debts under certain circumstances. If a bad debt is personal, it can also be deducted in some instances as a short-term capital loss.
basic personal exemption (BPE)Canada
basisDefinition (Investments, Taxation, Insurance, Financial-banking)
That on which a thing rests or is founded.
before-tax incomeDefinition (Taxation, Financial-banking)
Earnings before income taxes are paid.
business interest expenseDefinition (Taxation, Financial-banking)
Interest acquired in business operations can be deducted as a business expense.
business personal property (BPP)Acronym
business tax instalment payment plan (BTIPP)Calgary, Alberta, Canada
business tax reduction (BTR)Canada
Business Tax Review Committee (BTRC)Saskatchewan, Canada
Canada Child Tax Benefit (CCTB)Canada
The Canada Child Tax Benefit is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18.
  ➥  Pamphlet T4114.
Canada Customs and Revenue Agency (CCRA)Canada
Canada Revenue Agency (CRA)Company, Canada
Canadian Advocates for Tax Awareness (CAFTA)Ottawa, Ontario, Canada
Canadian Development Expense (CDE)Canada
Canadian Exploration and Development Overhead Expenses (CEDOE)Canada
Canadian Property Tax Association (CPTA)Company Est.1967, Canada
Canadian Taxpayers Federation (CTF)Company Est.1990, Canada
  ➥  Canadian lobby group.
Canadians for Tax Fairness (CTF)Company, Ottawa, Ontario, Canada
capital assetsDefinition (Investments, Taxation, Financial-banking)
Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
capital cost allowance (CCA)Canada
Capital Cost Allowance is a method of expensing depreciable assets as defined by the Canadian Income Tax Act (ITA).
capital gain (CG)Definition (Investments, Taxation, Financial-banking)
The profit made by the seller when real estate or other capital assets are sold. Capital gains are taxed more favourably than earned income. However, this can be dependent on your tax bracket and the length of time you owned the asset before it was sold. You could pay approximately one-third to one-half less tax than you would pay on the same amount of earned salary.
capital gain distributionDefinition (Investments, Taxation, Financial-banking)
When the fund sells some of its assets, you receive capital gain distributions or a portion from the sale. This distribution is regarded as a capital gain, not as ordinary dividends such as the interest gained from a bank account. It is important to separate capital gain distributions from ordinary dividends because capital gains are taxed more favourably.
capital gains tax (CGT)Canada
A tax on profits from the sale of real estate or investments.
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Capital LossExchange

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Index of Taxes Terms

Page 1: Accelerated Capital Cost...
Capital Gains Tax
Page 2: Capital Loss
Page 3: Exempt Capital Gains Balance
Investment Tax Credit for...
Page 4: Kicker
Ontario Innovation Tax...
Page 5: Ontario New Technology Tax...
Page 6: Revenue
Unrealized Capital Gains
Page 7: Update Tax Deferred Annuity
Yukon Small Business...

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