BTAX Case Study W$24$

Required: Prepare the $2023$ personal tax return for Michael Scott using CANTAX

software. Use Annotations & Breakdowns to explain entries, calculations, and document

assumptions as necessary. Prepare a one page analysis of the tax considerations

Michael is facing in his $2023$ return both positively and negatively impacting his return.

Bonus point: What other things could Michael & Holly have possibly done to improve

this tax return?

Background: Michael Scott is a District Manager for Staples residing in Ontario. He

has moved from Quebec during the past year to get married and join his wife, Holly. He

has provided you with attached tax slips & receipts, with other relevant information

summarized as follows:

Address: $18$ Smith Street, Kingston, ON K$6$J$2$Y$7$

Date of Birth: Oct. $31,1982$

SIN: $123-456-789$

Michael and Holly were married September $1,2023$ and have no eligible dependents.

Holly has owned the home in Kingston since $2018.$ She is a human resource manager

for Home Depot in Kingston. Her other relevant information summarized as follows:

Maiden name: Flax

Date of Birth is Apr. $1,1986$

SIN: $987-654-321$

Michael accepted an offer for his small office supply store in Quebec $($which he owned

free and clear$)$ for $$150,000$ May $15,2023.$ His initial investment in $2013$ was $$25,000.$

The business does note own real estate. Michael has already determined that the sale

of shares qualify for the lifetime capital gains exemption. Michael has never utilized his

LCGE.

Michael sold his Condo in Quebec during $2023$ prior to his relocation, which was the

only home he ordinarily resided in$.$ He purchased the home in $2010$ for $345,000,$ and

sold it for $$600,000.$ Selling costs included $$15,000$ in real estate commissions and

$$3000$ in legal costs.

Michael provided the following information relating to his relocation:

$$ Distance from old home to new work $350$ km

$$ Distance from new home to new work $10$ km

$$ Moving Date: June $15,2023$

$$ New Job Start Date: July $5,2023$

$$ Distance driven by personal vehicle $340$ km