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Dorian Redman is 45 years old and is married to Charlie Domico, who is 36 years old. They have two children, Zac who is six
Dorian Redman is 45 years old and is married to Charlie Domico, who is 36 years old. They have two children, Zac who is six years old and Sasha who is eleven years old. Both children are in good health. Charlie is an art dealer and earned $225,000 in 2022. Dorian earned employment income of $89,000 in 2022. He started this job on January 2, 2022. His employer withheld the following amounts from payroll on behalf of Mr. Redman. RPP contribution $7,000 CPP 3,500 EI 953 Charitable donations 5,000 Income Taxes Withheld 23,000 The couple paid childcare expenses of $12,000 for the year, $5,500 for Zac and $6,500 for Sasha. Childcare was required for 39 weeks in 2022. Other information provided for Dorian: 1. His savings account earned interest of $2,300 (2% return on investment). 2. He has taxable capital gains of $8,000. 3. He has allowable capital losses on the sale of shares of $9,000. 4. He received eligible dividends of $6,500 (10% return on investment). 5. He makes monthly spousal support payments of $1,000 to his ex-wife, as per the court agreement. He pays these amounts for the whole year. 6. He has net rental income before CCA of $10,200. The maximum CCA that Dorian can take was calculated to be $8,200. 7. He carried on a part-time business as a sole proprietor with a December 31 fiscal period. Net business income is calculated to be $73,700 for 2022. 8. The family moved on January 2, 2022, so they could be more than 40 kms closer to Dorians new place of employment. The new location did not negatively impact Charlies travel to work each day. Eligible moving expenses were $2,870 for 2022. Required: A. Calculate Dorians minimum 2022 net income for tax purposes. [7 pts] B. Calculate Dorians Taxable income for 2022. [3 pts] C. Calculate Dorians Federal tax payable before tax credits for 2022. [3 pts] D. Calculate Dorians net Federal tax payable for 2022 [8 pts] E. Calculate Dorians net tax balance owing (refund) for 2022. [3 pts] F. Dorian would like some tax planning advice going forward. Based in the details made available to you above, what advice would be most beneficial to Dorian at this time? He has not utilized any of the special savings tools available to individuals except for the RRSP contributions made through his place of employment. He has $25,000 of RRSP contribution . Please answer a- e with COMPLETE calculations with information available
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