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Canadian income tax accounting. Please show all work Cassie is 17 years old and in 2016, moved from Toronto, to Ottawa, to start university at
Canadian income tax accounting. Please show all work
Cassie is 17 years old and in 2016, moved from Toronto, to Ottawa, to start university at Carleton full-time in September, a distance of 450km. Cassie has always been very entrepreneurial, and both while in Toronto, and after her move to Ottawa, she provided tutoring services for $30/hour. She earned $1,400 from these services in Toronto, and $550 in Ottawa. The move to Ottawa cost her the following: Gas $100 U-haul rental $350 Lunch at 401 service centre $13 To help fund her university, her parents gave her $30,000 worth of shares, that pay an annual eligible dividend of $2,000. She also received a $4,000 scholarship, which was not quite enough to cover the $4,400 of tuition for the first semester. a) Calculate Cassie's net income for tax purposes, taxable income and balance due for 2016. b) Are any tuition credits available for transfer to her parents? If so, how much? What amount will carry-forward for Cassie if she transfers the maximum to her parents? c) Briefly explain why any amounts above were omitted from the calculation. Cassie is 17 years old and in 2016, moved from Toronto, to Ottawa, to start university at Carleton full-time in September, a distance of 450km. Cassie has always been very entrepreneurial, and both while in Toronto, and after her move to Ottawa, she provided tutoring services for $30/hour. She earned $1,400 from these services in Toronto, and $550 in Ottawa. The move to Ottawa cost her the following: Gas $100 U-haul rental $350 Lunch at 401 service centre $13 To help fund her university, her parents gave her $30,000 worth of shares, that pay an annual eligible dividend of $2,000. She also received a $4,000 scholarship, which was not quite enough to cover the $4,400 of tuition for the first semester. a) Calculate Cassie's net income for tax purposes, taxable income and balance due for 2016. b) Are any tuition credits available for transfer to her parents? If so, how much? What amount will carry-forward for Cassie if she transfers the maximum to her parents? c) Briefly explain why any amounts above were omitted from the calculationStep by Step Solution
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