Summer 2010 Midterm 1 Solution Q1

Summer 2010 Midterm 1 Solution Q1 - Question 1 Item Vacant...

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Unformatted text preview: Question 1 Item Vacant land Rental income Interest & property taxes Limit to rental income Rental properties Rental income ‐ prop 1 Rental income ‐ prop 2 Item Mark 12000 0.5 29,500 ‐ 12,000 1 ‐ 500 1,500 1,000 CCA 4% of 195,000 = 7800 or 4% of 185,000 = 7400 Limit to net income ‐ 1,000 GIC interest ‐ 1.5% x 200000 GIC anniversary interest 2.25% x 200,000 Accrued interest on purchase 3% bond June 30 interest 3% bond September 30 interest T‐bill interest T3 ‐ eligible dividends 1.45 x 3500 T3 ‐ other income T3 ROC not income US dividend 1.1 x (2550 + 450) Shareholder loan in 2008 income as not employee so 15(2) No loan interest benefit on shareholder loan as principal in income CCPC dividend ‐ 75x75x1.25 Niece's interest ‐ attribution Niece's capital gain ‐ no attribution for CG Nephew's dividends ‐ no attribution as gift Accounting fee Safety deposit box fee Magazines ‐ not deductible CCPC loan interest Appliance loan interest not deductible Taxable income 0.5 1 ‐ 0.5 3,000 4,500 ‐ 1,046 1,500 750 800 5,075 500 ‐ 3,300 0.5 1 0.5 0.5 0.5 0.5 1 0.5 0.5 1 ‐ 1 ‐ 7,031 250 ‐ ‐ ‐ 550 ‐ 50 ‐ ‐ 10,000 ‐ 1 1 1 1 1 0.5 0.5 0.5 0.5 0.5 15,060 Tax Calculation 15060 @ 15% Credits Basic 2,259 10,320 @15% ‐ 1,548 ‐ 964 ‐ 937 ‐ 495 DTC from T3‐ 19% of 5075 DTC CCPC ‐ 13 1/3 of 7031 FTC ‐ 450 x 1.1 Tax 0.5 0.5 1 1 1 ‐ 1,686 Cannot be negative ‐ 0.5 23 ...
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This note was uploaded on 03/24/2012 for the course ADMS 4561 taught by Professor Josephfrankovic during the Summer '10 term at York University.

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