How will these payments be dealt with in the tax returns filed by Barry and

How will these payments be dealt with in the tax

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Barry has paid the full amounts required by the settlement, in 2018, his payments total only $14,000. How will these payments be dealt with in the tax returns filed by Barry and Mandy? Exam Exercise Nine - 9 (Annuity Payments) On January 1 of the current year, Ms. Lorraine Brock uses $10,000 of her savings to acquire a fixed term annuity. The term of the annuity is three years, the annual payments are $4,020, the payments are received on December 31 of each year, and the rate inherent in the annuity is 10 percent. What is the effect of the $4,020 annual payment on Ms. Brock’s Net Income For Tax Purposes. 499 Canadian Tax Principles 2018/19 Edition – Test Item File Problems Downloaded by Philip Mateo ([email protected]) lOMoARcPSD|4453594
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TIF Problem One - 1 Exam Exercise Nine - 10 (Annuity Payments) On January 1, 2018, 1al Miner uses $2,673 of his savings to pay for an annuity that will return $1,000 at the end of each year in 2018, 2019, and 2020. The effective rate of interest in this annuity is 6 percent. What is the effect of the $1,000 payment on Mr. Miner’s 2018 Net Income For Tax Purposes? 500 Canadian Tax Principles 2018/19 Edition – Test Item File Problems Downloaded by Philip Mateo ([email protected]) lOMoARcPSD|4453594
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TIF Problem One - 1 Exam Exercise Nine - 11 (Canada Education Savings Grants) Marco was born in 2017. As his mother is very keen on tax planning, she establishes an RE1P for Marco by contributing $1,000 to the plan in 2017. Marco’s grandmother contributes an additional $400 to the plan on the same day. In 2018, Marco’s mother contributes $2,200 to the plan, while the grandmother contributes an additional $1,900. Marco’s family has never had family income of more than $40,000. Determine the amount of the CE1Gs that would be added to Marco’s RE1P in 2017 and 2018. Exam Exercise Nine - 12 (Inadequate Consideration) Ms. Veronica Lox owns securities with an adjusted cost base of $150,000 and a fair market value of $175,000. 1he sells these securities to her father for $130,000. He immediately sells them to an arm’s length party for $175,000. Determine the tax consequences for Ms. Lox and her father. Exam Exercise Nine - 13 (Inadequate Consideration) Ms. Veronica Lox owns securities with an adjusted cost base of $150,000 and a fair market value of $175,000. 1he sells these securities to her father for $210,000. He immediately sells them to an arm’s length party for $175,000. Determine the tax consequences for Ms. Lox and her father. Exam Exercise Nine - 14 (Inter Vivos Transfers To A Common-Law Partner) Marilyn Fox owns a large piece of land that she acquired several years ago for $85,000. For several years, she has been using the property to run a high security parking lot operation. On January 1, 2018, she gives the property to her common-law partner Ellen Degen. At this time, the fair market value of the land is $170,000. Marilyn does not elect out of ITA 73(1). During 2018, Ellen continues the parking lot operation, which produces a net business income of $8,500. On January 1, 2019, Ellen sells the parking lot for $190,000.
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