Chapter9Solutions

Chapter9Solutions - Chapter 9 - Solution 2 Paragraph 3( a...

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Unformatted text preview: Chapter 9 - Solution 2 Paragraph 3( a ): Income Employment Income Subdivision a Sec. 5 Salary gross.......................................................... $150,000 Sec. 5 Commission income.................................................. 30,000 Par. 6(1)( a ) Christmas present, including GST (>$500).......... 750 Par. 6(1)( a ) Fitness Club (1) ............................................................ 1,300 Car benefit: Par. 6(1)( k ) $0.22 10,000 km .................................................... $ 2,200 Par. 6(1)( e ) (10,000/20,004) 2 / 3 $18,400 (2) ............................. 6,132 $ 8,332 less: payroll deduction ....................................... (2,400) 5,932 $187,982 Par. 8(1)( f ), 67.1 Salespersons expenses (50% $8,300) ................... (4,150) Par. 8(1)( m ) RPP ........................................................................... (6,000) $177,832 Property Income Subdivision b Par. 12(1)( c ) Interest....................................................................... $ 1,100 Par. 12(1)( j ) Dividends taxable Canadian corporations grossed up @ 45% ................................................. 10,875 Par. 12(1)( k ) Dividend U.S. corporation (Cdn$) ....................... 800 Ssec. 74.1(2) Bonds minors: (2 $120)..................................... 240 $ 13,015 Par. 20(1)( bb ) Less: Investment counsellors fee.............................. $ 1,100 Par. 20(1)( c ) Interest shares.............................................. 850 1,950 11,065 Other income Subdivision d Spar. 56(1)( a )(ii) Ssec. 248(1) Retiring allowance re loss of office...................... $ 28,000 Par. 56(1)( d ) Annuity ..................................................................... 2,000 30,000 Paragraph 3(b): Taxable Capital Gain Subdivision c House: Par. 40(2)( b ) P of D ($188,000 + $12,000) .................................... $200,000 ACB .......................................................................... $ 90,000 SC.............................................................................. 12,000 (102,000) Gain........................................................................... $ 98,000 Exempt portion 14 12 1 ) 3 ( + $98,000........................... (91,000) Capital gain ............................................................... $ 7,000 TCG ( 1 / 2 $7,000) .................................................... 3,500 Total income [pars. 3( a ) and ( b )] ................................................................ $222,397 Paragraph 3(c): Deductions Subdivision e Par. 60( a ) Capital portion of annuity ......................................... $ 650 Par. 60(j. 1 ) Transfer of retiring allowance to RRSP .................... 20,900 (4) Par. 60( i ) RRSP......................................................................... 13,000 (5) $(33,550) $188,847 Paragraph 3(d): Losses Rental loss.................................................................................................... Rental loss....
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Chapter9Solutions - Chapter 9 - Solution 2 Paragraph 3( a...

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