One half net additions 12147500 73750 cca base

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One-Half Net Additions (1/2)($147,500) -73750 CCA Base $73,750.00 Rate 0.04 Maximum CCA $2,950.00 Net Income For Tax Purposes Net Business Income $171,025.00 CPP Contributions (Subdivision e Deduction) -2163 Net Taxable Capital Gains ($10,706 + $97,222 - $10,343) 97585 Net Rental Income 5850 Net Income For Tax Purposes $272,297.00 Taxable Income Mr. Bosch Taxable Income is equal to his Net Income For Tax Purposes because there are no Taxable Income deductions available. Balance Owing Tax On First $127,021 $26,880.00 Tax On Next $145,276 ($272,297 - $127,021) At 29 Percent 42130 Tax Before Credits $69,010.00 Tax Credits: Basic Personal Amount -10382 Common-Law Partner -10382 Child (2)($2,101) -4202 CPP (1/2)($4,326) -2163 Chris's Disability -7239 Chris Disability Supplement -4223 Medical Expenses (Note 7) -19221 Total Credit Base -57812 Rate 15% -8672 Subtotal $60,338.00 Charitable Donations Credit (15%)($200) + (29%)($5,500) - $200) -1567 Political Contributions (3/4)($400) + (1/2)($300) -450 CPP Payable -4326 Balance Owing (Federal) $26,647.00
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Sheet1 Page 4 Note 7 Chris and Martin are under the age of 18 years old, there is no limit on their allowable medical expenses. The medical tax credit would be: Arnold $2,050.00 Fritz 1080 Chris 16470 Martin 1645 Lesser Of $8,169 (0.03)($272,297) And $2,024 -2024 Medical Expense Tax Credit Base $19,221.00 Assignment Problem Eleven – 6 Net Income For Tax Purposes And Taxable Income Net Employee Income Gross Salary – Ottawa $62,000.00 RPP Contributions – Ottawa -2500 Stock Option Benefit (Note 1) 10000 Gross Salary – Toronto 13000 RPP Contributions – Toronto -650 Moving Allowance (Note 2) 7500 $89,350.00 Business And Property Income Non-Eligible Dividends On Lintz Shares $7,500.00 Gross Up (0.25)($7,500) 1875 Mail Order Business (Note 3) 22500 Taxable Capital Gain (Allowable Capital Losses) Lintz Shares (1/2)($105,000 - $95,000 - $1,050) $4,475.00 Employer's Shares (Note 4) -175 4300 Other Sources Of Income (Subdivision d) Child Support (Note 5) $0.00 Retiring Allowance (Note 6) 30000 30000 Other Deductions From Income (Subdivision e) Moving Expenses (Note 2) -5160 Child Care Costs (Note 7) -7560 RRSP Contributions (Note 8) -36498 -49218 Net Income For Tax Purposes $106,307.00 Stock Option Deduction (Note 1) -5000 Taxable Income $101,307.00
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Sheet1 Page 5 Note 1 Fair Market Value At Exercise ($20)(2,000 Shares) $40,000.00 Cost Of Shares ($15)(2,000 Shares) -30000 Stock Option Benefit $10,000.00 Note 2 Ms. Klaus moving expense allowance of $7,500 must be added to income because there is exemption for a moving expense allowance However, Ms. Klaus can deduct other types of
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