Fall 2010 MT 1 Q2 Marking Key

Fall 2010 MT 1 Q2 Marking Key - 10) 49500 1 at 1/2 24750...

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Question 2 Marks Rental income before CCA 500 + 1500 1000 0.5 CCA Building 1 195000 x 4% = 7800 0.5 or CCA Building 2 185000 x 4% = 7400 Limit to income 1000 0.5 GIC interest 150000 x 1.5% 2250 0.5 Bond interest $200000 x 2.25% 4500 0.5 Bond interest paid on purchase 3501 0.5 3% Bond June interest 1500 0.5 3% Bond interest on sale 750 0.5 T bill 2500 1 Vacant land rental income 12000 0.5 Vacant land interest and property taxes 28000 0.5 Deduction limited to rental income 12000 0.5 16,000 interest & property taxes added to cost of land 0 0.5 T3 eligible dividends 2500 x 1.44 3600 1 T3 other income 500 0.5 UK dividend 3000 x 1.61 4830 1 CCPC dividend 75 x 100 x 1.25 9375 1 Stock dividend 100 x 20 x 1.44 2880 1 Share gift capital gain 50 x (1000
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Unformatted text preview: 10) 49500 1 at 1/2 24750 0.5 Niece dividend no attribution kiddie tax because minor 0.5 Nephew dividend no attribution gift and not minor 0.5 Tax prep fee 550 0.5 Safety deposit box 50 0.5 Business magazines not deductible 0.5 Share loan interest 10000 1 Car loan interest not deductible 0.5 Taxable income 43334 Tax on first 40970 6146 0.5 Balance at 22% 520 6666.08 0.5 Basic credit 10382 0.5 at 15% 1557 0.5 T3 eligible dividend tax credit 1100 x 10/17 647 1 Foreign tax credit 300 x 1.61 483 1 CCPC dividend tax credit 1875 x 2/3 1250 1 Stock dividend tax credit 880 x 10/17 518 4455 1 23 Max 22...
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