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In 2022, Anita Poirier was transferred by her employer to Vancouver from Toronto. She has made a number of financlal transactions related to the move.

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In 2022, Anita Poirier was transferred by her employer to Vancouver from Toronto. She has made a number of financlal transactions related to the move. Anita has asked you for help in determining her 2022 income for tax purposes. She has provided the following information: 1. Anita is divorced and supports her two children Lise (aged 17) and Randy (aged 19). In the summer, Randy earned net profits of $4,000 as a street vendor. Lise's only source of income was from an investment purchased for her tyy her mother. The investment. bonds of a Canadian public corporation, paid interest of $1,200 during the year. 2. Anita began work in Vancouver in February 2022 as a senior sales associate for a clothing manufacturer. During the year, she received a gross solary of $133,100 as well as selling commissions of $5,000. In addition, on June 30 , her employer's year-end, she was awarded a bonus of $36,000 payable in 12 monthly instalments of $3,000 beginning July 31,2022 . She contributed $4,500 to the company's registered pension plan, and her employer contributed the same amount, She also pald $3,500 to the Canada Pension Plan and made Employment Insurance contributions of $953 3. Anita's employer has certified that she is required to pay some of her own expenses as part of her selling duties. She incurred the following costs: Anita uses her own car for business activities. At the end of 2021, the car had an undepreciated capital cost of $20,000. In 2022. she drove the car 30,000km, of which approximately 16,000Km were for personal use. She acquired a computer (see table), which she uses at home to maintain customer files and industry information. She estimates that 90% of her computer time is employment related. Anita uses her own car for business activities. At the end of 2021, the car had an undepreciated capital cost of $20,000. In 2022. she drove the car 30,000km, of which approximately 16,000Km were for personal use. She acquired a computer (see table), which she uses at home to maintain customer files and industry information. She estimates that 90% of her computer time is employment related. 4. On January 15, 2023, Anita contributed $8,500 to an RRSP. On the same date she contributed $4,800 to a TFSA. For the 2021 taxation year, her earned income was $63,889. In 2021 , the combined (employer and employee) contribution to her employer RPP was $6.600. 5. Anita drove herself and her two children from Toronto to Vancouver. The 4,400. Km trip took five days and cost $400 for gasoline, $480 for accommodation (four nights), and $500 for meals (five days). As well, she incurred the following relocation costs: Her employer, in accordance with company policy, paid her-the maximum $12.000 as a partial reimbursement for transporting furniture to Vancouver: 6. Anita wrote an article on selling strategles in the fashion industry. It was published in a national trade journal and recelved wide acclaim. In September, she was awarded a \$2.200 prize for having written the journal's best article of the year. 7. In January, Anita sold her home in Toronto for $300,000. She had acquired the home in 2019 for $250,000 and had occupled it untl the move to Vancouver. 8. Five years ago. Anita purchased 5% of the common shares of Prentice Ltd. for $20,000. Prentice is a Canadian-controlled pilvate 8. Five years ago, Anita purchased 5% of the common shares of Prentice Ld. for $20,000. Prentice is a Canadian-controlled private corporation manufacturing specialized furniture, In June 2019, when the company had cash-flow problems, Anita lent Prentice $10,000. The loan was unsecured and payable on demand. Although Anita has recelved no interest to date, in 2020 and 2021 , she included in her taxable income interest of $1,500($7502y=$1,500) based on the agreed interest rate on each anniversary date In 2022, she demanded payment of the loan and accrued interest, but the company was unable to pay. The company's only assets, other than the leased manufacturing equipment, were inventory and recelvables, which were pledged on a bank loan; these were insufficient to meet even that obligation. In March 2023, Prentice closed operations and declared bankruptcy. 9 The sale of the commodity futures contract was Anita's second commodity transaction. In 2020, she purchased and sold a similar contract but lost $14,000. She deducted the full $14,000 when computing her 2020 taxable income. 0. Anita owns a residential rental property in Toronto. She acquired the property in 2021 for $414,000 (land - $54,000, building $360,000 ). She incurred a substantial loss in 2021 as a result of an unexpected vacancy. She found a new tenant in 2022 . She recelved gross rents of $48,000 in 2022. Expenses for utilities, taxes, insurance, interest, and maintenance were $47,100 that yeat. One of the tenants failed to pay their December 2022 rent of $2,200. However, she received that payment on January 20,2023 . 12. Anita hired an investment counsellor. On his recommendation, she used $40,000 of the $200,000 mortgage loan on her new home to acquire Canadian public securities. Her mortgage interest payments totalled $22,000. She paid the investment counselior $2,200 for his advice. 13. Anita made donations of $4,000 to registered charities. 14. During 2022. Anita's 2020 tax return was reassessed. She hired a fawyer to prepare an appeal. The legal fee was $1,400. The appeal was not successful. Required: For the 2022 taxation year, calculate Anita's net income for tax purposes. Prepare the calculation in accordance with the net income formula, and organize the items of income by the categories described in that formula. Entertainment Business income: Property Income: Canadian dividends Bad Debt Expense Bank Interest Income Interest exponse on mortgage Interest Income on gift to Daughter investment counselor foe Rent expenses Rent receivable Rental Building CCA Rent received Other Income: \begin{tabular}{r} 5,500 \\ \hline \\ \hline \\ \hline \end{tabular} 58,500 Paragraph 3(b) Capital gains \& Capital losses Taxable captal gain - LPP - Painting Taxable capital gain - Teulon shares 5 0 Taxable capital gain - Toronto home Prev 6 of 6 Next Paragraph 3(b) Capital gains \& Capital losses \begin{tabular}{l} Taxable captal gain - LPP - Painting \\ Taxable capital gain - Teulon shates \\ \hline Faxable capital gain - Toronto home \\ \hline \end{tabular} $ 0 Paragraph 3(c) Other deductions CPP eihanced contributions: Rogal Expense: Tax appeal RRSP Deduction Moving Expenses (below) Net Income for Tax purposes \begin{tabular}{lr} $ & 0 \\ \hline$ & 7.500 \\ \hline \end{tabular} Moving Expenses: \begin{tabular}{l} Moving furniture \\ Moving Legal fees on sale of former home \\ Moving Legal fees to purchase new home \\ Moving Meals \& vehicle (simplifiod Method) \\ Moving Real estate commission \\ Moving reimbarsement \\ Moving Temporary lodging and meals in Vancouver \& Toronto \\ \hline Moving Temporary lodging and meals on trip \end{tabular}

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