{"id":32127,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/question-4-income-tax"},"modified":"2017-08-16T06:05:44","modified_gmt":"2017-08-16T06:05:44","slug":"question-4-income-tax","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/question-4-income-tax\/","title":{"rendered":"Question 4: Income Tax"},"content":{"rendered":"
\n

Question 4: Income Tax (25 marks)<\/u><\/em><\/strong><\/p>\n

 <\/p>\n

Boris, age 36, works as a sales representative for a pharmaceutical company.  He is single and has no dependents.  He has provided you with the following information and asked you to help him complete his 2016 tax return.<\/p>\n

 <\/p>\n

Pay Stub:<\/p>\n

 <\/p>\n\n\n\n\n\n
EARNINGS<\/strong><\/p>\n

YTD<\/strong><\/p>\n

Earnings                                                                     93,000.00<\/p>\n<\/td>\n

GOVERNMENT<\/strong><\/p>\n

YTD<\/strong><\/p>\n

Income Tax              23,555.95<\/p>\n

CPP                         2,564.10<\/p>\n

EI                                955.04<\/p>\n<\/td>\n<\/tr>\n

BEFORE TAX DEDUCTIONS<\/strong><\/p>\n

YTD<\/p>\n

Group RRSP                        4,650.00<\/p>\n

 <\/p>\n

 <\/p>\n<\/td>\n

AFTER TAX DEDUCTIONS<\/strong><\/p>\n

YTD<\/strong><\/p>\n

Long term disability          1,104.42                      <\/strong><\/p>\n<\/td>\n

EMPLOYER PAID BENEFITS<\/strong><\/p>\n

YTD<\/strong><\/p>\n

Dental                                  3,009.45<\/strong><\/p>\n

EHC                                    5,198.66<\/strong><\/p>\n

Life (2X)                                478.00<\/strong><\/p>\n

Employer RRSP                 2,325.00                        <\/strong><\/p>\n

Workers Compensation       302.76<\/strong><\/p>\n

 <\/strong><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

 <\/p>\n

Additional info:<\/p>\n

He withdrew $7,950 from his personal RRSP (separate from the Group RRSP with his employer) four years ago as part of the homebuyer\u2019s plan.  He has repaid the minimum of $530 each year and plans to do the same this year.  The balance outstanding based on his 2015 Notice of Assessment is $6,890.  He does not have any unused contributions from previous years.  According to his most recent NOA his deduction limit is $23,900.  He has also made a contribution of $6,200 to his personal RRSP account this taxation year.<\/p>\n

 <\/p>\n

He has the following investments:<\/p>\n

High interest savings bank account that earned $89.25 in interest.<\/p>\n

TFSA Account with a balance of $14,300.  He has contributed $750 in 2016.  He earned foreign dividends of $100 and interest of $72 in the TFSA account.<\/p>\n

Non-registered investment account \u2013 he sold publicly traded shares at a loss of $385.  He earned eligible dividends of $950.   He was not provided with an information slip (refer here for instructions:  http:\/\/www.cra-arc.gc.ca\/tx\/ndvdls\/tpcs\/ncm-tx\/rtrn\/cmpltng\/ddctns\/lns409-485\/425-eng.html<\/a>).  He also incurred carrying charges of $25 on the non-registered account.<\/p>\n

 <\/p>\n

He paid $1,500 for professional membership fees.  His employer reimbursed him for this.<\/p>\n

 <\/p>\n

He does not qualify for the Canada Employment Amount.<\/p>\n

 <\/p>\n

Complete a 2016 tax return for Boris using the below forms.<\/p>\n

 <\/p>\n

Links to relevant forms:<\/p>\n

T1 General:  http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5006-r\/5006-r-16e.pdf<\/a><\/p>\n

Schedule 1 Federal Tax: http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5000-s1\/5000-s1-16e.pdf<\/a><\/p>\n

Schedule 3 Capital Gains or Losses:  http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5000-s3\/5000-s3-16e.pdf<\/a><\/p>\n

Schedule 4 Statement of Investment Income:  http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5000-s4\/5000-s4-16e.pdf<\/a><\/p>\n

Schedule 7:  RRSP and PRPP: http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5000-s7\/5000-s7-16e.pdf<\/a><\/p>\n

Canada Pension Plan Contributions and Overpayment: http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5000-s8\/5000-s8-16e.pdf<\/a><\/p>\n

Ontario Tax:  http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5006-c\/5006-c-16e.pdf<\/a><\/p>\n

Ontario dividend tax credit: http:\/\/www.cra-arc.gc.ca\/E\/pbg\/tf\/5006-d\/5006-d-16e.pdf<\/a><\/p>\n

 <\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Question 4: Income Tax (25 marks)   Boris, age 36, works as a sales representative for a pharmaceutical company.  He is single and has no dependents.  He has provided you with the following information and asked you to help him Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-32127","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/32127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=32127"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/32127\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=32127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=32127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=32127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}