Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer fast please, if answered fast i will upvote! Question 6 (20 marks) An individual needs your help to calculate his personal income tax: a.

image text in transcribed

image text in transcribed answer fast please, if answered fast i will upvote!

Question 6 (20 marks) An individual needs your help to calculate his personal income tax: a. An individual who resides in Ontario has net employment income of $120,000 for 2023. b. His employer withheld CPP and El premiums totaling $4,756, of which $631 were CPP enhanced contributions. c. He maintains a small portfolio of investments that resulted in a taxable capital gain of $5,000 from the sale of qualified small business corporation shares (the capital gain deduction is available). d. The investments also generated eligible dividends of $8,000 and non-eligible dividend of $3,000 from Canadian Corporations e. The investments also generated interest income of $10,000 from Canadian banks and $2,000 from US. From the $2,000 of US interest income, $300 (15\% of $2,000 was withheld on account of foreign taxes. f. The individual is single and 40 years old. *Notes - Eligible dividend gross-up rate 138%, tax credit rate 6/1138% - Non-eligible dividend gross-up rate 115\%, tax credit rate 9/1315\% Basic personal amount: $15,000 for individuals with net income not exceeding $165,430 Employment amount $1,368 CPP/El amount = amount paid - enhanced CPP contribution Foreign tax credit: limited to 15% of foreign income earned

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions