Ahmed also advises you that he sold a piece of vacant land at a significant loss this year. He had planned to build a rental property on the land but learned after purchasing it that it was highly polluted. The cost of this land was $200,000, and it was sold for $30,000 in 2019.

4.

Ahmed has a T5 slip from 2019 indicating that he earned an eligible dividend of $20,000 and interest income of $300.

5.

For the 2019 taxation year, Ahmed made RRSP contributions of $3,000. This is his first RRSP contribution, and his RRSP deduction limit for 2019 is $120,000.

6. Ahmed pays spousal support payments to his ex-wife of $500 per month pursuant to a legal agreement. He is behind in his payments and was only able to pay $3,500 in 2019.

Required: a)

Calculate the following for the 2019 taxation year. Provide explanations for omitted amounts.

i) Ahmed’s rental income and any taxable capital gains and allowable capital losses from the sale of the real estate properties that he sold during 2019 (4.5 marks)

ii) Ahmed’s deductible moving expenses (4.5 marks)

b) Calculate net income for tax purposes for Ahmed for 2019. (6.5 marks)

c) Determine Ahmed’s estimated RRSP deduction limit for 2020. (4.5 marks)

Note: Round all amounts to the nearest dollar and ignore GST and provincial taxes. Show the full detail of all steps in your calculations, even if the result is zero

It is late March 2020. You have just met with your client Ahmed about his taxes. Ahmed has several tax issues for the 2019 taxation year that he needs your help with. 1. Ahmed has two T4 slips from 2019, as he moved during the year: Ontario Nova Scotia employer employer $62,200 $65,000 2,749 860 Employment income CPP deducted El deducted RPP contributions Pension adjustment Income tax deducted 2,500 4,000 12,000 2,749 860 1,500 3,000 12,500 2. Ahmed and his daughter Zeinab moved from Ontario to Nova Scotia during 2019 for work, which he began right away. Their moving expenses include the following items: Movers - packing and transporting furniture and belongings Selling costs of Ontario home Gas to drive family car to Nova Scotia Two nights in hotel for the family Meals during the trip to Nova Scotia Legal costs to acquire new home in Nova Scotia Costs related to vacant former home while up for sale Costs to repaint new home $6,000 4,000 1,250 5,500 4,000 200 400 200