Dr Jatta Lu has hired your professional services to file her income tax return Dr Luis a retired surgeon Due to her failing eyesight, Jette was required to retire from her occupation at a younger age than normal Fortunately, Jaffa has more than enough income to support herself as a result of yours of receiving a very large salary as a surgeon and a family inheritance Jatta has invested most of her past employment amnings into a large portfolio which paid the following amounts during 2020, the current year (Click on the icon to view Part 1 of the additional information ) (Click on the icon to view Part 2 of the additional information ) Required E. in Jaffa's case, the cost of upgrading the wood siding to vinyl siding on the rental property would be considered a capital expenditure assiding will have enduring value (it will last for several taxation years) and it improves the quality of the rental property beyond its original condition OF. Although repairs and maintenance expenses are fully deductible against rental income, capital expenditures are not doductblo Requirement 5. Explain to Jaffa the tax consequences that could occur if she sells the rental property due to the fact that she has claimed the macman CCA on the Tental property since acquisition Select all that apply A Recapture on the disposition of rental property would not be included as taxable income on the Jaffa's income tax return B. The sale of the property could trigger recapture (in addition to a capital gain) if the property was sold for proceeds of disposition that exceed the capital cost of the property C. Since real estate property has the potential to increase in value over time. Jaffa could likely trigger recapture and capital gains on the sale of her rental property ED. Since the real estate property is decreasing in value, Jaffa will trigger recapture on the sale of her rental property because he value of the property is less than the high Ucc balance Item Dividends from public Canadian corporations (subject to high corporate tax rates) Dividends from private Canadian corporations (subject to low corporate tax rates) Interest income received from Canadian sources Dividends from foreign corporations (translated into Canadian dollars): Amount $22,000 32,000 17,800 12,500 Note: Total foreign dividends earned was $13,900 less foreign tax withheld of $1,400 Jaffa's portfolio of investments includes a five-year investment contract purchased three years ago on September 1. The investment contract has a maturity value of $165,000 and an annual interest rate of 3%. The total interest earned on the investment contract will be paid on maturity on September 1 2022, two years from now. Jaffa did not receive any interest (cash) from this investment contract in 2020 Jaffa's portfolio of investments is managed by a large Canadian brokerage firm called Premier Investments Inc. ("Premier") Premier charges Jaffa investment counsel fees of $5,300 during 2020 In 2019, the previous year, Jaffa received a large family inheritance, which she invested into a rental property. The property was purchased in 2019, and Jaffa has claimed the maximum amount of capital cost allowance (CCA) on the property in 2019. In 2020, the opening UCC balance in CCA Class 1 for the rental building is $320,000 and Jaffa would like to claim the maximum CCA deduction on the rental income in 2020. The rental income and expense information for 2020 is as follows. Item Rental income Property tax Property insurance Property management fees Utilities Repair of a leaky faucet and water damage Amount $2,450 per month 5,300 for the year 150 per month 180 per month 590 per month 1,450 To assist with filing her tax return, Jaffa provides you with detailed records from her bank. The documents indicate that Jaffa has borrowed the following amounts from her bank $180,000 mortgage on the rental property with principal repayments totalling $14.000 and interest payments of S6 400 for 2020 $355,000 mortgage on Dr Lu's personal home with principal repayments totalling $18,000 and interest payments of $8 600 for 2020 $175.000 loan used to purchase mutual funds with Premier Investments Inc. Jaffa naid interest of S4 800 on this loan during 2020 apa COSTUROWTICO TUTTUIT UTC property 2019. In 2020, the opening UCC balance in CCA Class 1 for the rental building is $320,000 and Jaffa would like to claim the maximum CCA deduction on the rental income in 2020. The rental income and expense information for 2020 is as follows. Item Rental income Property tax Property insurance Property management fees: Utilities Repair of a leaky faucet and water damage. Amount $2,450 per month 5,300 for the year 150 per month 180 per month 590 per month 1,450 To assist with filing her tax return, Jaffa provides you with detailed records from her bank. The documents indicate that Jaffa has borrowed the following amounts from her bank $180,000 mortgage on the rental property with principal repayments totalling $14.000 and interest payments of S6,400 for 2020 $355,000 mortgage on Dr. Lu's personal home with principal repayments totalling $18,000 and interest payments of $8,600 for 2020 $175 000 loan used to purchase mutual funds with Premier Investments inc Jaffa paid interest of $4.800 on this loan during 2020 $51.000 loan used to purchase Jaffa's personal use vehicle. Jaffa paid $2,390 of interest on this loan during 2020 Requirement 2. Jaffa has reviewed your calculation of net property income and she is confused Aaffe does not understand why the dividend income whod in you calculation is different than the amounts she received in the year Describe for Jalfa the concept of integration and how this impacts to action of Canadian south dividends as well as the tax consequences of foreign source dividends received by an individual in Canada Select all that apply A. The "gross-up" refers to the procedure where dividend income earned by an individual from a Canadian corporation must be intated by multiplying the actus dividend by a certain fraction B. The taxable dividend income reported on Jatta tax return will be equal to the inflated or "gross-up" dividend calculated as the actual dividend dead by a certain fraction C. The "gross-up" refers to the procedure where dividend income earned by an individual from a Canadian corporation must be inflated by dividing the actual dividend by a certain fraction D. The taxable dividend income reported on Jaffa tax return will be equal to the infiated or "gross-up" dividend calculated as the actualidad mutphed by a certain fraction fire and using a portion of the proceeds from the sale to pay of some of Requirement 3. Jaffa informs you that she plans on selling her rental properly in the near future and using a portion of the proceeds from the sale to pay off some of her debt with the bank Jaffa would like your advice on which loans she should pay back first in order to achieve the most favourable tax consequences Choose the correct answer O A. Jaffa should use the proceeds from the sale of the rental property to repay her personal mortgage and the loan she used to purchase mutual funds rather than her personal car loan O B. Jaffa should use the proceeds from the sale of the rental property to repay her personal mortgage or her personal car loan rather than the loan sho used to purchase mutual funds. OC. Jaffa should use the proceeds from the sale of the rental to repay the loan she used to purchase mutual funds rather than her personal car loan or het personal mortgage O D. Jaffa should use the proceeds from the sale of the rental property to repay her personal car loan rather than the loan she used to purchase mutual funds or her personal mortgage ference between Requirement 4. Prior to selling the rentat property, Jotta plans on upgrading the wood siding on the house to vinylsiding Explain to Jatha the difference between capitalizing and expensing costs, and indicate which treatment the siding cost should receive Select all that apply A. Capital expenditures are any expense that have an enduring value, increase the useful life of the rental property, or relate to the purchase of a separato asset B. Generally, repairs and maintenance expenses are staller, more frequent, expenses that restore the property to its previous condition but do not materially improve the property C. Repairs and maintenance expenses are larger but less frequent costs that improve the value of the property D. Since repairs and maintenance expenses are fully deductible against rental income capital expenditures are also deductible DE In Jaffa's case, the cost of upgrading the wood siding to vinyl Siding on the rental property would be considered a capital expenditure as siding will have enduring value it will last for several taxation years) and it improves the quality of the rental property beyond its onginal condition F. Although repairs and maintenance expenses are fully deductible against rental income, capital expenditures are not deductible aime the movimim Can the Requirement 5. Explain to Jatto the tax consequences that could occur i she sees the rental property due to the tact that she has claimed the maximum CCA on the rental property since acquisition Select all that apply A Recapture on the disposition of rental property would not be included as taxable income on the Jaffa's income tax return 8. The sale of the property could trigger recapture (in addition to a capital gain) if the property was sold for proceeds of disposition that exceed the capital cost of the property C. Since real estate property has the potential to increase in value over time, Jalta could likely trigger recapture and capital gains on the sale of her rental property D. Since the real estate property is decreasing in value, Jaffa will trigger recapture on the sale of her rental property because the value of the property is less than the high UCC balance Dr Jatta Lu has hired your professional services to file her income tax return Dr Luis a retired surgeon Due to her failing eyesight, Jette was required to retire from her occupation at a younger age than normal Fortunately, Jaffa has more than enough income to support herself as a result of yours of receiving a very large salary as a surgeon and a family inheritance Jatta has invested most of her past employment amnings into a large portfolio which paid the following amounts during 2020, the current year (Click on the icon to view Part 1 of the additional information ) (Click on the icon to view Part 2 of the additional information ) Required E. in Jaffa's case, the cost of upgrading the wood siding to vinyl siding on the rental property would be considered a capital expenditure assiding will have enduring value (it will last for several taxation years) and it improves the quality of the rental property beyond its original condition OF. Although repairs and maintenance expenses are fully deductible against rental income, capital expenditures are not doductblo Requirement 5. Explain to Jaffa the tax consequences that could occur if she sells the rental property due to the fact that she has claimed the macman CCA on the Tental property since acquisition Select all that apply A Recapture on the disposition of rental property would not be included as taxable income on the Jaffa's income tax return B. The sale of the property could trigger recapture (in addition to a capital gain) if the property was sold for proceeds of disposition that exceed the capital cost of the property C. Since real estate property has the potential to increase in value over time. Jaffa could likely trigger recapture and capital gains on the sale of her rental property ED. Since the real estate property is decreasing in value, Jaffa will trigger recapture on the sale of her rental property because he value of the property is less than the high Ucc balance Item Dividends from public Canadian corporations (subject to high corporate tax rates) Dividends from private Canadian corporations (subject to low corporate tax rates) Interest income received from Canadian sources Dividends from foreign corporations (translated into Canadian dollars): Amount $22,000 32,000 17,800 12,500 Note: Total foreign dividends earned was $13,900 less foreign tax withheld of $1,400 Jaffa's portfolio of investments includes a five-year investment contract purchased three years ago on September 1. The investment contract has a maturity value of $165,000 and an annual interest rate of 3%. The total interest earned on the investment contract will be paid on maturity on September 1 2022, two years from now. Jaffa did not receive any interest (cash) from this investment contract in 2020 Jaffa's portfolio of investments is managed by a large Canadian brokerage firm called Premier Investments Inc. ("Premier") Premier charges Jaffa investment counsel fees of $5,300 during 2020 In 2019, the previous year, Jaffa received a large family inheritance, which she invested into a rental property. The property was purchased in 2019, and Jaffa has claimed the maximum amount of capital cost allowance (CCA) on the property in 2019. In 2020, the opening UCC balance in CCA Class 1 for the rental building is $320,000 and Jaffa would like to claim the maximum CCA deduction on the rental income in 2020. The rental income and expense information for 2020 is as follows. Item Rental income Property tax Property insurance Property management fees Utilities Repair of a leaky faucet and water damage Amount $2,450 per month 5,300 for the year 150 per month 180 per month 590 per month 1,450 To assist with filing her tax return, Jaffa provides you with detailed records from her bank. The documents indicate that Jaffa has borrowed the following amounts from her bank $180,000 mortgage on the rental property with principal repayments totalling $14.000 and interest payments of S6 400 for 2020 $355,000 mortgage on Dr Lu's personal home with principal repayments totalling $18,000 and interest payments of $8 600 for 2020 $175.000 loan used to purchase mutual funds with Premier Investments Inc. Jaffa naid interest of S4 800 on this loan during 2020 apa COSTUROWTICO TUTTUIT UTC property 2019. In 2020, the opening UCC balance in CCA Class 1 for the rental building is $320,000 and Jaffa would like to claim the maximum CCA deduction on the rental income in 2020. The rental income and expense information for 2020 is as follows. Item Rental income Property tax Property insurance Property management fees: Utilities Repair of a leaky faucet and water damage. Amount $2,450 per month 5,300 for the year 150 per month 180 per month 590 per month 1,450 To assist with filing her tax return, Jaffa provides you with detailed records from her bank. The documents indicate that Jaffa has borrowed the following amounts from her bank $180,000 mortgage on the rental property with principal repayments totalling $14.000 and interest payments of S6,400 for 2020 $355,000 mortgage on Dr. Lu's personal home with principal repayments totalling $18,000 and interest payments of $8,600 for 2020 $175 000 loan used to purchase mutual funds with Premier Investments inc Jaffa paid interest of $4.800 on this loan during 2020 $51.000 loan used to purchase Jaffa's personal use vehicle. Jaffa paid $2,390 of interest on this loan during 2020 Requirement 2. Jaffa has reviewed your calculation of net property income and she is confused Aaffe does not understand why the dividend income whod in you calculation is different than the amounts she received in the year Describe for Jalfa the concept of integration and how this impacts to action of Canadian south dividends as well as the tax consequences of foreign source dividends received by an individual in Canada Select all that apply A. The "gross-up" refers to the procedure where dividend income earned by an individual from a Canadian corporation must be intated by multiplying the actus dividend by a certain fraction B. The taxable dividend income reported on Jatta tax return will be equal to the inflated or "gross-up" dividend calculated as the actual dividend dead by a certain fraction C. The "gross-up" refers to the procedure where dividend income earned by an individual from a Canadian corporation must be inflated by dividing the actual dividend by a certain fraction D. The taxable dividend income reported on Jaffa tax return will be equal to the infiated or "gross-up" dividend calculated as the actualidad mutphed by a certain fraction fire and using a portion of the proceeds from the sale to pay of some of Requirement 3. Jaffa informs you that she plans on selling her rental properly in the near future and using a portion of the proceeds from the sale to pay off some of her debt with the bank Jaffa would like your advice on which loans she should pay back first in order to achieve the most favourable tax consequences Choose the correct answer O A. Jaffa should use the proceeds from the sale of the rental property to repay her personal mortgage and the loan she used to purchase mutual funds rather than her personal car loan O B. Jaffa should use the proceeds from the sale of the rental property to repay her personal mortgage or her personal car loan rather than the loan sho used to purchase mutual funds. OC. Jaffa should use the proceeds from the sale of the rental to repay the loan she used to purchase mutual funds rather than her personal car loan or het personal mortgage O D. Jaffa should use the proceeds from the sale of the rental property to repay her personal car loan rather than the loan she used to purchase mutual funds or her personal mortgage ference between Requirement 4. Prior to selling the rentat property, Jotta plans on upgrading the wood siding on the house to vinylsiding Explain to Jatha the difference between capitalizing and expensing costs, and indicate which treatment the siding cost should receive Select all that apply A. Capital expenditures are any expense that have an enduring value, increase the useful life of the rental property, or relate to the purchase of a separato asset B. Generally, repairs and maintenance expenses are staller, more frequent, expenses that restore the property to its previous condition but do not materially improve the property C. Repairs and maintenance expenses are larger but less frequent costs that improve the value of the property D. Since repairs and maintenance expenses are fully deductible against rental income capital expenditures are also deductible DE In Jaffa's case, the cost of upgrading the wood siding to vinyl Siding on the rental property would be considered a capital expenditure as siding will have enduring value it will last for several taxation years) and it improves the quality of the rental property beyond its onginal condition F. Although repairs and maintenance expenses are fully deductible against rental income, capital expenditures are not deductible aime the movimim Can the Requirement 5. Explain to Jatto the tax consequences that could occur i she sees the rental property due to the tact that she has claimed the maximum CCA on the rental property since acquisition Select all that apply A Recapture on the disposition of rental property would not be included as taxable income on the Jaffa's income tax return 8. The sale of the property could trigger recapture (in addition to a capital gain) if the property was sold for proceeds of disposition that exceed the capital cost of the property C. Since real estate property has the potential to increase in value over time, Jalta could likely trigger recapture and capital gains on the sale of her rental property D. Since the real estate property is decreasing in value, Jaffa will trigger recapture on the sale of her rental property because the value of the property is less than the high UCC balance