5. Should Redblacks tickets be expensed? Yes or No

6. Should storgae locker fee be claimed? If yes, how much

7. Should Office Furniture be added as capital asset? If yes, what would be the asset (CCA) class and amount

8. Should Computer be added as capital asset? If yes, what would be the asset (CCA) class and amount

Claim the maximum CCA (business and property) in order to reduce the tax liability. No CCA should be claimed against the personal residence. Ignore GST/HST on sales and expenses.

Ms. Smith has been working for her employer for over a decade. The table below summarizes the information from her T4 slip.

Employment Income

Box 14	$150,000
Box 16	$2,593.88
Box 18	$858.22
Box 22	$41,500
Box 24	$51,799
Box 26	$55,900

Business Income

In addition to working a standard 9 a.m.-5 p.m. job, Ms. Smith had an innovative idea and a couple of years ago she started her own business. The details you will need to complete her T1 Return are below:

On January 1, 2018, she purchased a brand-new computer for $1,500 and bought new software (not the operating system software) at the same time for $1,000.

Ms. Smith pays $45 per month for online local advertising.

In order to drum up business, Ms. Smith purchased seasons tickets for both the Senators and the Redblacks.

The cost for the Senators tickets (2) for $1,500 each. Ms. Smith will take a client to every hockey game; she has not missed a game in over five years.

The cost for the Redblacks tickets (4) for $350 each. The same goes for the Redblacks, she hasnt missed a game either and its a family tradition for her, her spouse and their two nieces to attend the games together.

Ms. Smith pays $75 a month for a storage locker that she has had for over 3 years. Everything in the storage locker was bequeathed to her from her great uncle. She has no use for the items, but she cant seem to let them go.

Ms. Smith operates an unincorporated business out of her personal residence and the entire basement is dedicated to the business on nights and weekends. The house has three levels, including the basement. No other part of the house is used to earn income. Ms. Smith regularly meets clients there to discuss future sales.

To furnish the home office, Ms. Smith spent $5,000 on office furniture on January 1, 2018. Ms. Smith was getting tired of the dated bathroom on the top floor of the house and decided to renovate it for a cost of $25,000.