Special Regimes

Beyond the standard calculation, the Income Tax Act contains special regimes: sets of rules that apply to particular kinds of income, particular relationships, or particular events. They can increase tax (alternative minimum tax, tax on split income, OAS recovery, departure tax), reduce it (capital gains inclusion, principal residence exemption, lifetime capital gains exemption, pension splitting), or change who is taxed (attribution rules). Many of these regimes exist to prevent income from being shifted to lower-taxed people or periods.

PAGES IN THIS SECTION

• Capital Gains and Losses

• Principal Residence Exemption

• Lifetime Capital Gains Exemption

• Alternative Minimum Tax

• Pension Income Splitting

• Tax on Split Income

• Attribution Rules

• OAS Recovery Tax

• Self-Employment Income

• Rental Income

• Death of a Taxpayer

• Emigration and Departure Tax

COMMON THREADS

• Deemed dispositions: the Act often treats property as sold at fair market value even when no sale occurs, such as on death, emigration, change of use or gifts to non-spouses.

• Non-arm's length transactions: transfers between related people are generally deemed to occur at fair market value.

• Elections: many regimes are optional and require a specific form filed on time.