Terminal Loss

Tax exempt describes an amount or a transaction that tax does not apply to at all, which is different from a deduction or credit that merely reduces tax. Common examples are supplies that are exempt or zero-rated for GST/HST, investment income earned inside a TFSA, and specific receipts Parliament has excluded from income. Registered charities and non-profits can be exempt from income tax while still carrying filing duties. Exemption is never automatic; the rule must fit your facts.

Most municipalities do not take credit cards for property tax directly. They accept pre-authorised debit, online or telephone banking, cheque, and in-person payment. Third-party payment processors will charge a property tax bill to a card for a service fee, which normally costs more than the rewards earned. The CRA works the same way for income tax and GST/HST: no direct card payment, but authorised third-party providers accept cards for a fee.

Rent paid is not deductible on the federal return. Relief comes instead through provincial credits claimed on the provincial form filed with your T1, such as Ontario's energy and property tax credit, Manitoba's renters credit and Quebec's solidarity tax credit, each with its own residency and income tests. Rent is deductible only as a business or employment cost: the work-space-in-the-home share on a T2125, or with an employer-signed form where an employee is required to work from home.

The spouse or common-law partner amount is a non-refundable credit for someone supporting a partner with little income of their own. It starts from a base amount set each year, is reduced as the partner's net income rises, and disappears once that income passes the cut-off, so it helps couples where one earns much less. Report your partner's net income on your return even when it is nil, because several credits and benefits depend on it.