Case Details:
Ms. Peta Jansan is employed by Dutch Foods Ltd., a public company. In 2022, she received a
total of $75,000. In 2021, she was awarded a bonus of $19,500, all of which was paid in
January of 2022.
Her employer withheld the following payroll amounts from her salary in 2022:
RPP Contributions $3,400
EI Premiums 953
CPP Contributions 3,500
Life Insurance Premium 250
Premiums to Company's Disability Insurance Plan 1,200
1. Her employer pays her Alberta provincial health care premium of $528 ($44 monthly).
2. Ms. Jansan's employer makes a matching $1,200 contribution to the company's disability
insurance plan on behalf of Ms. Jansan. The disability insurance plan provides periodic
benefits during any period of disability to compensate for lost employment income.
Due to a two-month sick leave, Ms. Jansan received disability insurance benefits of $10,950.
Mr. Arnold has been making a $1,200 contribution each year since 2019. She has had no
disability insurance claims in any of the years 2019 to 2021.
3. Dutch Foods Ltd. provides Ms. Jansan with an automobile, which the company leases for
$560 a month. Ms. Jansan is required to pay all of the operating and maintenance costs of
the automobile. In 2022, these costs totaled $6,300.
The automobile was available for her use for 11 months during 2022 and was driven a total
of 43,360 kilometers, 35,120 of which were driven for employment use and 8,240 for
personal use.
4. Ms. Jansan was granted options to acquire 500 shares of the company's common stock at a
price of $31.00 per share two years ago. On the date the options were granted, the shares
were trading at $29.50 per share.
These options were exercised by Ms. Jansan on February 16, 2022, when the shares were
trading at $34.75 per share. On July 1, 2022, her shares paid an eligible dividend of $0.30
per share. She still owns the shares on December 31, 2022.
5. Ms. Jansan made the following disbursements in the year:
Tuition Fee for Operations Management Course 1,300
Tuition Fee for Medieval History Course 950
Fees Paid to Employer-recommended Financial Planner 450
Ms. Jansan's employer reimbursed for the tuition fees for both the operations management
course and the medieval history course, as well as the fees paid to the financial planner.
BUS 330: Income Taxation for Individuals
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6. Ms. Jansan is 37 years old and divorced from her former spouse.
She has two children from the marriage, Lotte, aged 5 and Bram, aged 9. Neither of these
children have any income in 2022.
The divorce agreement, which was issued in 2020, requires her former spouse to pay $3,000
per month in child support and an additional $1,000 per month in spousal support.
In 2022, her former spouse experienced financial difficulties and paid only $40,000 of the
required amounts of $48,000.
7. Child care expenses were $200 per week for 11 weeks. Later in the year, the weekly cost
increased to $250 per week and was paid for a total of 36 weeks.
In the summer, both children spent four weeks at an exclusive summer camp. The weekly
fees at this camp were $500 for each child.
8. Ms. Jansan also provides care for her 85-year-old grandfather who lives with her and her
children. While her grandfather is not mentally or physically infirm, his 2022 net income is
only $7,950, which makes him partly dependent on Ms. Jansan.
9. In 2022, Ms. Jansan contributes $6,000 to her TFSA and $5,500 to a TFSA that she opened
for her grandfather. In addition, she made RRSP contributions of $4,200 in August.
Assume Ms. Jansan's 2021 earned income for RRSP purposes was equal to her 2022
earned income. At January 1, 2022, Ms. Jansan had no unused deduction room and no
undeducted RRSP contributions.
10. Ms. Jansan provides you with the following information on her dispositions of property during
the year:
POD ACB
Diamond Necklace $1,100 $ 750
Oil Painting 3,800 5,100
Graphic Novel Collection 800 2,500
Antique Weapons Collection 8,000 6,200
11. In 2022, Ms. Jansan paid for the following medical expenses for herself and her dependants:
Peta $465
Lotte and Bram 738
Grandfather 12,473
Total Medical Expenses $13,676
BUS 330: Income Taxation for Individuals
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12. In 2022, Ms. Jansan makes her regular annual contribution of $2,000 to a registered charity.
13. Ms. Jansan owns a residential rental property. She rents the property to an individual on a
long-term rental basis at $2,500 per month.
The undepreciated capital cost balance of the property was $90,000 on December 31, 2021.
In 2022, she paid the following rental property expenses: Interest of $5,000, strata fees of
$6,000, property tax of $2,500, and $1,500 in repairs and maintenance.
Required:
1. Calculate Ms. Jansan's minimum net income for tax purposes and minimum taxable income
for the 2022 taxation year.
2. Calculate Ms. Jansan's minimum federal income tax for the 2022 taxation year.
Ensure you show all of your calculations in a clear and logical manner in your Excel
document. Refer to "Assignment Details" and "Grading" for suggestions and expectations for
organizing your Excel document.