page 22, March 30, 1977 - North Shore News FABULOUS TRINIDAD SUPERTONES steel band performs Saturday, April 2, 8 p.m. to 1 a.m., at The Capilane Room Easter Dance, 23rd and Lonsdale—sponsored by the Jamaica Caribbean Assn. of B.C. For tickets [$3.50] call 985-3815 or 985-5615. No tickets can be sold at the door. - Tax Talk From The Institute of Chartered Accountants of British Columbia Interest and dividend in- come hold promise of. more tax breaks for. taxpayers. Qualified interest and divi- dend income is eligible for the $1,000 interest and divi- dend deduction. Isn’t it nice to get something tax-free for a change? Individuals must report all interest and taxable divi- dends in calculating income. The exemption of up_ to $1,000 is deducted in calcu- lating taxable income on the last page of the tax return. To be eligible, the interest must be received from Canadian sources. As well, qualified interest does not include any portion of annui- ty payments under register- ed retirement savings plans or deferred. profit sharing plans, any payments under an income-averaging annuity contract or registered pen- sion funds or royalties. Interest received from a non-arms-length source and interest received from a partnership by a member of the partnership are also not qualified for the interest exemption. DIVIDENDS In general terms, a non- arms-length source means someone who is a closely- related or a company con- trolled by the taxpayer, or by a person or persons closely related to the taxpayer. Certain dividends received by the taxpayer are also eligible for the $1,000 inter- est and dividend exemption. The dividends, to be eligible, must be received from a taxable Canadian corporation with which the taxpayer deals at arms-length. Special dividends, such as dividends received out of tax-paid undistributed sur- plus or 1971 capital surplus on hand, are not eligible since they are not included in ‘income. In calculating the amount it is the taxable amount, or grossed-up amount, of the dividend which is included for the deduction. This is the same amount which is . included i in income. p The fact that the ‘dividend is eligible for the interest and dividend deduction does not affect the calculation of the. 20 per cent dividend tax credit which is available for dividends received from tax- able Canadian corporations. In other words, you can claim - both the dividend tax credit and the $1,000 interest and dividend deduction. SPOUSE’S CLAIM In addition to his own deduction a taxpayer may also claim a deduction for any unused portion of his ’ come on down and meet Rick.. spouse’s deduction. The taxpayer’s. spouse must claim whatever amount is required to eliminate taxable income; any baiance left over can then be claimed by the. taxpayer. In calculating the interest and dividend deduction it is the gross amiount which is used. If a taxpayer has $1,000 of interest and divi- dend income and allowable interest expense of $1,000, he may still claim the interest | and dividend deduction: “even though his net investment income, after deducting the interest expense, . would be nil. ; A budget amendment which is expected to be brought into law shortly will prevent taxpayers from claiming the interest deduc- tion for any accrued interest that is purchased along with a bond or similar security. Although the rules are a bit tricky to avoid abuse, the $1,000 interest and dividend deduction is a welcome tax break for many small inves- tors. guitar & case sale Guitar & case sale! Buy a guitar during carnival week and receive a free gultar case (value $18.95) special-M.S.A. Pedal . Steel 12. string, 5 pedals, 4 knee levers, Aas new - $1,395.00 free guitar! ANY PURCHASE OF $5.00 OR MORE DURING CARNIVAL WEEK ENTITLES YOU TO A CHANCE TO WIN A FREE ‘GUITAR (value $129.94) North Shore Music 13th and Lonsdale. 1323 LONSDALE PHONE 985-8441 ‘ > This i is the modern, convenient way to. _ pay your bills and meet everyday.expenses. -% re oe Cheques, personalize y and address, are free and there are no. service charges: so you can write as many cheques as you heed. And, since you. receive : your cancelled cheques and an itemized . staternent every month, you always know exactly what bills you've paid and how much money you have left in the account. Canada Permanent t Trust Company . Canada Permanent Morigage. Corporation HARDWARE STORES Cre ee 2 é 10 day sale starts Thursday. look for more in-store specials. UY Sunbeam Mower 18’ single discharge blade. High powered Sunbeam motor with fast electric starts. Lightweight single dis- charge pressed steel deck. your choice> f Black & Decker 3/8’’ Reversible Drill Variable speed for per- fect control with revers- ing switch for backing , out screws and drill bits. Trigger lock for contin- uous action. 2.4 amps. $23.95 ‘CGE 18” Single blade mower Swing over handle with toggle switch. Cutting height adjustable to 5 positions. Roto Rake Bars Makes that tough job of raking your lawn a Iittle easier, $9 f 6 ° Lawn Spreadors Sturdy construction with 16"' spreading width and 25 Ib capacity. *10.88 Galvanized Garbage Cans Rugged construction galvanized steel can with lid lock: 16% gal, capacity. Not exactly as 1329 Lonsdale Ave. rs | Ae Von !