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has a $3,000 RRSP deduction available as a subdivision e deduction. Two years ago, Mr. T suffered a very serious loss on his rental properties,

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has a $3,000 RRSP deduction available as a subdivision e deduction. Two years ago, Mr. T suffered a very serious loss on his rental properties, and has a Non-capital Loss carryover that he is going to take as a Division C deduction. The only Division E benefit that Mr. T will have is the basic personal tax credit. What will Mr. T's Federal Tax payable be, based on the following additional information? Complete the following table to present the solution, showing the Part, Division and Subdivision for each item required in the table: Question 1 Based on the Personal Income Tax Rate Components for 2022, answer the following: a) Assuming only the basic personal tax credit, how much federal tax would an individual have to pay on $40,000 of taxable income in 2022? b) How would the answer to (a) above change if the taxable income was $100,392 ? c) Considering only federal taxes, if the same individual as (a) and (b) above had $100,393 of taxable income, what would the marginal and average tax rates be? d) What is the combined federal and provincial marginal tax rate for an individual living in British Columbia who has taxable income of \$250,000 in 2022 ? e) How much combined federal and provincial tax would an individual living in British Columbia have to pay on $110,000 of taxable income in 2022 ? f) Suppose a husband and wife living in British Columbia were to each earn $55,000 (i.e. their family income is $110,000 ), how much combined federal and provincial tax would this family have to pay in 2022 ? g) What is the difference in total tax owing to federal and provincial governments, between (e) and (f) above? Why does this difference arise? What is the tax planning strategy that attracts taxpayers on account of this set of circumstances? In 2020, Mr. C acquired 2,000 shares of Isotech for $3.00 per share including brokerage fees. In 2022, Mr. C sold 1,000 share of Isotech for $5.00 per share, and also paid $35.00 in brokerage fees on the disposal. In 2022, how much is Mr. C's: a) Gain? b) Capital Gain? c) Taxable Capital Gain? Question 3 Mr. T has asked you to prepare his tax return. Mr. T is an employee of Telus, as a technical support expert, and he runs a part-time business offering consulting services. He also has an investment in some rental properties, which has been losing money due to high interest costs. Mr. T also day-trades in stock, and has earned capital gains and some losses. Mr. T Complete the following table to present the solution, showing the Part, Division and Subdivision for each item required in the table: Question 4 AP 3-4 on Page 170 (at the bottom, continued on page 171) of the textbook. Be sure to review the 10 Chapter 3 Videos in Pearson Resources (Multimedia Section) beforehand

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