Line 52930 gross or net?

inessa1 · ‎March 27, 2023

On line 52930 (Foreign sourced non-resident income) do I enter gross amount or net (after foreign tax)?

Thank you!

janisbossenberry · ‎March 28, 2023

You would enter the gross income. If they paid income tax to the foreign country during a period of non-residency, it does not qualify as a foreign tax credit or a deduction.

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JRBooks1 · ‎March 28, 2023

CRA wants to know the gross income while the client was non-resident to determine his/her eligibility for credits such as the GST credit, Canada child benefit, etc, on the same basis as a "regular" resident. Line 15000 is essentially a taxpayer's gross income minus a few deductions (which include eligible expenses against rental and self-employment income). A few more deductions brings one to line 23600 - net income - which determines a taxpayer's eligibility for a whole host of programs. Taxes don't factor into the calculations for either line, so they shouldn't for line 52930 either.

Hope this helps.

Jo

View solution in original post

janisbossenberry · ‎March 28, 2023

You would enter the gross income. If they paid income tax to the foreign country during a period of non-residency, it does not qualify as a foreign tax credit or a deduction.

JRBooks1 · ‎March 28, 2023

CRA wants to know the gross income while the client was non-resident to determine his/her eligibility for credits such as the GST credit, Canada child benefit, etc, on the same basis as a "regular" resident. Line 15000 is essentially a taxpayer's gross income minus a few deductions (which include eligible expenses against rental and self-employment income). A few more deductions brings one to line 23600 - net income - which determines a taxpayer's eligibility for a whole host of programs. Taxes don't factor into the calculations for either line, so they shouldn't for line 52930 either.

Hope this helps.

Jo