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Case 6 (5 marks)John is 43 years old and has net rental income of $97,300. His wife died last year and he is a single
Case 6 (5 marks)John is 43 years old and has net rental income of $97,300. His wife died last year and he is a single parent of two children. Mack is 16 and is physically infirm, but does not qualify for the disability tax credit. He has income from part time work as a student counselor of $4,800. His daughter, Serena, is 10 and is in good health.
OVERVIEW: There are six (6) independent cases which follow. Each case involves various assumptions as to the amount and type of income earned by John Moss during 2020, as well as to other information that is relevant to the determination of his 2020 Tax Payable. John's Net Income For Tax Purposes is equal to his Taxable income in all Cases. If income was from employment assume the employer withheld maximum El and CPP contributions. Ignore any amounts John might have had withheld for taxes or paid in tax instalments. REQUIRED: In each Case, calculate the minimum 2020 federal Tax Payable for John Moss. Indicate any carry forwards available to him and his dependants and the carry forward provisions. OVERVIEW: There are six (6) independent cases which follow. Each case involves various assumptions as to the amount and type of income earned by John Moss during 2020, as well as to other information that is relevant to the determination of his 2020 Tax Payable. John's Net Income For Tax Purposes is equal to his Taxable income in all Cases. If income was from employment assume the employer withheld maximum El and CPP contributions. Ignore any amounts John might have had withheld for taxes or paid in tax instalments. REQUIRED: In each Case, calculate the minimum 2020 federal Tax Payable for John Moss. Indicate any carry forwards available to him and his dependants and the carry forward provisionsStep by Step Solution
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