Marcia and martin medical expenses 9700 900 1060000

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Marcia And Martin Medical Expenses ($9,700 + $900) $10,600.00 Threshold – Lesser Of: (0.03)($106,307) and $2,024 -2024 Subtotal $8,576.00 Louise's Medical Expense – Lesser Of:
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Sheet1 Page 7 $7,250 – (0.03)($6,000) = $7,070 Absolute Limit = $10,000 7070 Allowable Medical Expense $15,646.00 Note 10 The political contributions tax credit is (3/4)($400) + (1/2)($350) + (1/3)($150). Assignment Problem Twelve – 10 Part A – Net Income For Tax Purposes Accounting Income $527,000.00 Add: Amortization Expense $127,000.00 Taxable Capital Gain On Building (1/2)($423,000 - $373,000) 25000 Recapture ($373,000 - $290,000) 83000 Charitable Donations 8500 Business Meals And Entertainment (1/2)($18,000) 9000 Foreign Taxes Withheld 7500 260000 Deduct: Maximum CCA -143000 Accounting Gain On Building -113000 CEC (0.07)(0.75)($50,000) -2625 -258625 Net Income For Tax Purposes $528,375.00 Part B – Taxable Income Net Income For Tax Purposes $528,375.00 Dividends Received -17000 Current Charitable Donations -8500 Charitable Donations Carry Forward (All) -12000 Non-Capital Loss Carry Forward (All) -42000 Net Capital Loss Carry Forward -25000 Taxable Income $423,875.00 Part C – Tax Payable Base Tax Amount Of Part I (.38)($423,875) $161,073.00 Federal Tax Abatement (.10)(.90)($423,875) (Note 1) -38149
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Sheet1 Page 8 Small Business Deduction (Note 2) -68234 M & P Deduction (Note 4) Nil General Rate Reduction (Note 5) -2250 Foreign Business Tax Credit (Given) -7500 Part I Tax Payable $44,940.00 Note 1 Foreign revenues are equal to 20 percent of total revenues ($375,000/$1,875,000). Foreign wages and salary are nil. Which gives an average percentage for the foreign income allocation of 10 percent, with the remaining 90 percent being allocated to the two provinces. Note 2 Active Business Income $510,000.00 Taxable Income $423,875.00 Less: 3 Times The Foreign Business Tax Credit (3)($7,500) -22500 Adjusted Taxable Income $401,375.00 Annual Business Limit $500,000.00 The least of these figures is $401,375, resulting in a small business deduction of $68,234 (0.17)($401.357). Note 3 M & P Profits (Given) $310,000.00 Less: Amount Eligible For The Small Business Deduction -401375 Balance Nil Taxable Income $423,875.00 Less: Amount Eligible For The Small Business Deduction -401375 3 Times The Foreign Business Tax Credit (3)($7,500) -22500 Adjusted Taxable Income Nil Note 4 Taxable Income $423,875.00 Amount Eligible For The Small Business Deduction -401375 Amount Eligible For The M&P Deduction Nil Full Rate Taxable Income $22,500.00 Rate 10.00% General Rate Reduction $2,250.00
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