ARCHIVED - Total income (lines 126 to 150)

On this page…

• Line 126 - Rental income
• Line 127 - Taxable capital gains
• How to report
• Line 128 - Support payments received
• Line 129 - RRSP income
• RRSPs for spouse or common-law partner
• Repayments under the Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP)
• Line 130 - Other income
• Scholarships, fellowships, bursaries (study grants), and artists' project grants
• Lump-sum payments
• Retiring allowances (severance pay)
• Death benefits (other than Canada or Quebec Pension Plan death benefits)
• Other kinds of income
• Lines 135 to 143 - Self-employment income
• Line 144 - Workers' compensation benefits
• Line 145 - Social assistance payments
• Line 146 - Net federal supplements

⬤Line 126 - Rental income

Enter your gross rental income on line 160 and your net rental income or loss on line 126. If you have a loss, show the amount in brackets. If you were a member of a partnership, you should also include any amount in box 20 of your T5013 slip, or any amount the partnership allocated to you in its financial statements.

You have to include with your return a statement (you can use Form T776, Statement of Real Estate Rentals) showing your rental income and expenses for the year. If it applies, also include either your T5013 slip or a copy of the partnership's financial statement.

Guide T4036, Rental Income, contains Form T776 and more information about rental activities.

If you have a tax shelter, see "Tax shelters".

⬤▮▲Line 127 - Taxable capital gains

You may have a capital gain or loss when property is disposed of, such as when real estate or shares (including those in mutual funds) are sold. If you were a non-resident in 2003, or a non-resident electing under section 217, a capital gain or a capital loss occurs when you dispose of taxable Canadian property.

Generally, if the total of your gains for the year is more than the total of your losses, you have to include 50% of the difference in your income. However, if the total of your losses for the year is more than the total of your gains, you cannot deduct the difference on your return for the year. See the section below called "How to report" (For non-residents or non-residents electing under section 217, see the exception below.)

If you have a capital gain or loss from redeeming your mutual fund units or shares, get information sheet RC4169, Tax Treatment of Mutual Funds for Individuals, for more details.

When you donate capital property to a charity, we consider you to have sold the property at its fair market value. As a result, you may have to report a capital gain or loss for that property. There are special rules for donations of certain property. For details, get guide T4037, Capital Gains, and pamphlet P113, Gifts and Income Tax.

How to report

Complete Schedule 3 and attach it to your return. Generally, if all of your gains or losses are shown on T4PS, T5, or T5013 slips, or on a financial statement from a partnership, enter the amounts on line 174 on Schedule 3, and if they are shown on T3 slips, enter them on line 176. Also attach these documents to your return. If your securities transactions are shown on an account statement or a T5008 slip, use the information on these documents to help you complete Schedule 3. For more information about these and other capital dispositions, get guide T4037, Capital Gains.

If the result on line 199 on Schedule 3 is positive (a gain), enter the amount on line 127 of your return.

If you are a deemed resident in 2003 and the result is negative (a loss), do not claim the amount on line 127 of your return. We will register it in our system. Keep track of this loss, which you can use to reduce your taxable capital gains of other years. The following "Notes" explain how to do this.

Notes
You may have incurred a net capital loss in 2003 that you want to apply against taxable capital gains you reported on your 2000, 2001, or 2002 return. In that case, you probably will have to adjust the loss you want to apply. For more information and to carry back the loss, get Form T1A, Request for Loss Carryback, and guide T4037, Capital Gains. Attach a completed Form T1A to your return (or send one to us separately). Do not file an amended return for the year or years to which you want to apply the loss.

If you are completing a return for a person who died in 2003, get guide T4011, Preparing Returns for Deceased Persons, for details about special rules that apply to claiming these losses.

Non-residents and non-residents electing under section 217 - If you notified us of the disposition or proposed disposition of taxable Canadian property during 2003, and made a payment or provided acceptable security on account of the tax, we would have sent you a certificate of compliance for the proposed disposition (Form T2064, Certificate - Proposed Disposition of Property by a Non-Resident of Canada), or the actual disposition (Form T2068, Certificate - The Disposition of Property by a Non-Resident of Canada).

Attach copy 2 of the certificate of compliance to your return.

Do not include in your return any gain or loss from disposing of taxable Canadian property if, under a tax treaty, the gain from that disposition would be exempt from tax in Canada. Attach to your return a note stating that you have not included the gain or loss because of a tax treaty. Also, attach a completed Schedule 3 for the disposition.

If you disposed of certain other types of Canadian property such as a Canadian life insurance policy, Canadian real property (other than capital property), Canadian resource property, or timber resource property, report the income from the disposition on line 130 or line 135 (whichever applies) of your return. Do not report these dispositions on the Schedule 3. Attach a note to your return giving the details of the disposition.

⬤Line 128 - Support payments received

Enter on line 156 the total of all support payments for yourself or for a child that you received (or, if you are the payer, the payments were repaid to you under a court order) in 2003. Enter on line 128 only the taxable amount. For more details, get pamphlet P102, Support Payments.

⬤▲Line 129 - RRSP income

Enter on line 129 the total of amounts shown in boxes 16, 18, 28, and 34 of all your T4RSP slips. Also include amounts in boxes 20, 22, and 26, unless your spouse or common-law partner made a contribution to your RRSP. See "RRSPs for spouse or common-law partner" later on this page for more details.

Non-residents electing under section 217 - Your RRSP income may be shown in box 16 or 26 of your NR4 slip if box 14 or 24 of the NR4 slip contains one of these income codes: 28, 29, 30, 32, 33, or 43.

RRSPs for spouse or common-law partner

Your spouse or common-law partner may have to report some or all of the RRSP income shown in box 20, 22, or 26 of your T4RSP slips if he or she contributed to any of your RRSPs in 2001, 2002, or 2003. In that case, your T4RSP slip should have "Yes" checked in box 24, and your spouse or common-law partner's social insurance number in box 36.

To calculate the amount from an RRSP for spouse or common-law partner that each of you has to report, complete Form T2205, Amounts From a Spousal or Common-law Partner RRSP or RRIF to Include in Income. Both you and your spouse or common-law partner should include this form with your returns. However, only the person shown as the annuitant on the T4RSP slip can claim the income tax deducted (box 30) and should attach the slip to his or her return.

Note
If you are a non-resident electing under section 217, or if you and your spouse or common-law partner were living apart because of a breakdown in the relationship when you withdrew funds from your RRSP, you have to report the whole amount shown on your T4RSP slips.

For more details on RRSP income, get guide T4040, RRSPs and Other Registered Plans for Retirement.

Repayments under the Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP)

Deemed residents - If, in previous years, you withdrew funds from your RRSP under the HBP or LLP, you may have to make a repayment for 2003. The minimum repayment is shown on your Notice of Assessment or Notice of Reassessment for 2002. To make a repayment, you have to contribute to your RRSP from January 1, 2003, to March 1, 2004, and designate your contribution as a repayment on line 6 or 7 of Schedule 7. Do not make your repayment to us.

If you repay less than the minimum amount for 2003, you have to include the difference on line 129 of your return.

Example
Kevin withdrew funds under the HBP in 1998. His required repayment for 2003 was $800. The only RRSP contribution he made from January 1, 2003, to March 1, 2004, was for $500 on June 18, 2003. He designated it on line 6 of Schedule 7 as a repayment under the HBP, and includes $300 in his income on line 129 ($800 required repayment minus $500 repaid and designated).

For more information, including the rules that apply when the person who made the withdrawal dies, turns 69, or becomes a non-resident, get guide RC4135, Home Buyers' Plan (HBP), or guide RC4112, Lifelong Learning Plan (LLP).

⬤▮▲Line 130 - Other income

Use this line to report taxable income that is not reported anywhere else on the return. To find out if an amount is taxable, contact us. Make sure you have read the instructions for lines 101 to 129 first. In the space to the left of line 130, specify the type of income you are reporting. If you have more than one type of income, attach a note to your return giving the details.

Note
Special rules apply for income from property one family member lends or transfers to another. See "Loans and transfers of property".

Non-residents and non-residents electing under section 217 - Report your net gain from the disposition of a Canadian life insurance policy on this line. Do not report it on Schedule 3. Attach to your return a note that gives the details of the disposition and copy 2 of Form T2064, Certificate - Proposed Disposition of Property by a Non-Resident of Canada, or Form T2068, Certificate - The Disposition of Property by a Non-Resident of Canada.

Scholarships, fellowships, bursaries (study grants), and artists' project grants

Total all the amounts you received in 2003 (box 28 of your T4A slips). If you received any amounts (other than an artist's project grant) for a program for which you can claim the education amount for 2003 (see line 323), report only the part of the total amount that is more than $3,000. Otherwise, report on line 130 only the amount that is more than $500.

Note
If you received an artists' project grant, you can subtract the $500 or your expenses, whichever you prefer, but not both. However, the expenses you claim cannot be more than the grant. You cannot claim personal living expenses while at your usual place of residence.

Report prizes and awards you received as a benefit from your employment or in connection with a business. However, these are not eligible for the $500 tax-free amount. If you received a research grant, see line 104.

For more information, get Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance.

Lump-sum payments

Include lump-sum payments from pensions and deferred profit-sharing plans (box 18 of your T4A slips and box 22 of your T3 slips) received when leaving a plan.

If, in 2003, you received a lump-sum payment that included amounts you earned in previous years, you have to include the whole payment on line 130 of your return for 2003. However, you can ask us to apply a reduced tax rate to the part that relates to amounts you earned before 1972. To ask us to apply this special rate, attach a note to your return. We will tell you the results on your Notice of Assessment or Notice of Reassessment.

Non-residents electing under section 217 - Lump-sum payments, retiring allowances, and death benefits (as defined on this page) may be shown in box 16 or 26 of your NR4 slip. Make sure the income code located in box 14 or 24 corresponds with the type of income reported. You will find a description of the income codes on the back of the NR4 slip.

Retiring allowances (severance pay)

A retiring allowance includes an amount paid as severance pay. Include the amount in boxes 26 and 27 of your T4A slips.

Also, report any retiring allowance included in the amount in box 26 of your T3 slips. Details regarding the retiring allowance will be shown in box 36 and in the footnotes area of the slips.

Note
You may be able to deduct legal fees you paid to get a retiring allowance. See line 232 for details.

Death benefits (other than Canada or Quebec Pension Plan death benefits)

A death benefit is an amount you receive after a person's death for that person's employment service. It is shown in box 28 of your T4A slips or box 35 of your T3 slips.

You may not have to pay tax on up to $10,000 of the benefit you received. If you are the only one to receive a death benefit, report the amount you receive that is more than $10,000. Even if you do not receive all of the death benefit in one year, the total tax-free amount for all years cannot be more than $10,000. To find out what to report if anyone else also received a death benefit for the same person, use Info-Tax, one of our T.I.P.S. services or see Interpretation Bulletin IT-508, Death Benefits.

Attach to your return a note stating the amount of death benefits you received but did not include in your income.

Other kinds of income

Also include the following amounts on line 130:

• amounts distributed from a retirement compensation arrangement;
• training allowances, Saskatchewan Pension Plan payments, or any other amount in box 28 of your T4A slips (other than amounts already mentioned for this line and line 104);
• payments from a trust shown in box 26 of your T3 slips;
• payments from a registered education savings plan shown in box 40 (see also line 418) or 42 of your T4A slips; and
• certain annuity payments (see line 115).

⬤▮▲Lines 135 to 143 - Self-employment income

Enter on the appropriate line your gross and net income or loss from self-employment. If you have a loss, show it in brackets. Include with your return a statement showing your income and expenses.

If your fiscal period did not end on December 31, 2003, guide RC4015, Reconciliation of Business Income for Tax Purposes, will help you calculate the business income to report on your return for 2003. If you filed Form T1139, Reconciliation of 2002 Business Income for Tax Purposes, with your return for 2002, you probably have to complete the version of this form for 2003 and attach it to your return.

Notes
If you were a deemed resident of Canada in 2003, you may have to make Canada Pension Plan contributions on your self-employment earnings (see line 222).

If a child who was born in 1986 or later is reporting certain self-employment income, see "Split income of a child under 18".

The following guides contain more information and forms you may need to help you calculate your self-employment income:

• T4002, Business and Professional Income (Form T2125, Statement of Business Activities, and Form T2032, Statement of Professional Activities)
• T4004, Fishing Income (Form T2121, Statement of Fishing Activities)
• T4003, Farming Income (Form T2042, Statement of Farming Activities) or RC4060, Farming Income and CAISP (Form T1163, Statement A - CAISP Account Information and Statement of Farming Activities for Individuals, and Form T1164, Statement B - CAISP Account Information and Statement of Farming Activities for Additional Farming Operations).

Notes
If you are participating in the Canadian Agricultural Income Stabilization Program (CAISP), and you are filing a return, use the envelope contained in guide RC4060, Farming Income and CAISP.

If you use your home for day care, see pamphlet P134, Using Your Home for Day Care, for more information.

Generally, if you were a limited or non-active partner, you enter your net income or loss on line 122. However, if your net income or loss is from a rental operation, enter the amount on line 126. If it is from a farming operation, enter it on line 141.

If you were an active partner and received a T5013 slip, report the amount from box 18 on the line of your return shown in box 05. This is your share of the partnership's net income or loss. Also report the partnership's gross income as shown in box 51. Attach the T5013 slip to your return. If you did not receive this slip, you should attach the applicable self-employment form indicated above, or a copy of the partnership's financial statement.

For more information, contact our Business Enquiries service by calling 1-800-959-5525 (calls within Canada and the United States). If you are outside Canada and the United States, call the International Tax Services Office.

If you have a tax shelter, see "Tax shelters".

Non-residents - This section applies to you only if you had Canadian-source business income in 2003 and the business did not have a permanent establishment in Canada. If the business had a permanent establishment in Canada, you should use another tax package. See the section on page 10 called "What if this tax and benefit package is not for you?"

Non-residents and non-residents electing under section 217 - Enter your income from the disposition of Canadian resource property and timber resource property at line 135. Do not report the income on Schedule 3. Attach to your return a note that gives the details of the disposition and copy 2 of the certificate of compliance, Form T2068, Certificate - The Disposition of Property by a Non-Resident of Canada.

You cannot claim a loss from a business carried on in Canada if, under a tax treaty, the income from that business would be exempt from tax in Canada.

⬤Line 144 - Workers' compensation benefits

Enter the amount in box 10 of your T5007 slip. Claim a deduction on line 250 for the benefits you entered on line 144.

Note
In 2003, you may have repaid salary or wages originally paid to you by your employer in a previous year, in anticipation of workers' compensation benefits you would receive. This amount should be shown in box 77 of your T4 slip. In that case, you may be able to claim a deduction on line 229. Contact us for more information.

⬤Line 145 - Social assistance payments

Generally, you enter the amount in box 11 of your T5007 slip or the federal part of your Quebec Relevé 5 slip. However, if you lived with your spouse or common-law partner when the payments were made, the one of you who has the higher net income on line 236 (not including these payments or the deductions on lines 214 or 235) has to report all of the payments, no matter whose name is on the slip. If this amount is the same for both of you, the person whose name is on the T5007 slip (or the prestataire on the federal part of the Relevé 5 slip) has to report them.

Note
You do not have to include certain social assistance payments you or your spouse or common-law partner received for being a foster parent or for caring for a disabled adult who lived with you. For more information, contact us. However, if the payments are for caring for your spouse or common-law partner or an individual related to either of you, whoever has the higher net income will have to include those payments in income.

Claim a deduction on line 250 for the social assistance payments you entered on line 145.

⬤Line 146 - Net federal supplements

Enter the amount in box 21 of your T4A(OAS) slip.

If your net income before adjustments (line 234) is $57,879 or less, claim a deduction on line 250 for the net federal supplements you entered on line 146. If the amount on line 234 of your return is more than $57,879, contact us to find out how much you can deduct on line 250.

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