• In early July 2012, Dr. Elaine Matthews separated from her husband of some years. She maintained full custody of the couple's only child, a seven-year-old girl. Since May 1, 1998, Dr. Matthews had been working as a public health consultant for the Oshawa region. Just prior to her separation she had chosen to take advantage of a severance package from the Oshawa region. She accepted a staff position at Joseph Brant Memorial Hospital in Burlington, Ontario and moved directly from Oshawa to Burlington on September 1, 2012. She sold the former family home in Oshawa on September 15, 2012. Her husband had rented an apartment in Oshawa in late July 2012. Dr. Matthews has some experience preparing her own tax returns but she has been particularly busy in recent months. She started her 2012 return but quickly decided she simply did not have time to finish it. She requested your assistance in completing her return. You met with Dr. Matthews to go over her tax information related to 2012 and determined that she had correctly calculated her income under Subdivisions a, b, and c of Division B to total $158,488. Included in this correct computation were the following items: Salary (from former employer) $ 96,000 Salary (from Joseph Brant Memorial Hospital) 60,000 Taxable benefits under section 6 of the Income Tax Act 1,743 Registered pension plan contributions (defined benefit plan) (6,750) Consulting income (reported as business income) 8,000 Interest income from investments 540 Taxable dividends from investments 1,250 Share of rental loss from childhood home inherited from her parents (1,495) Net taxable capital gains 4,800 Interest paid on investment loans (2,400) Loss from limited partnership investment (rental property) (3,200) $158,488 She provided you with the following additional details relating to 2012: Miscellaneous income Severance from former employer $ 41,538 Transfer of RPP accrued from former employer Her former employer made a direct transfer of her accumulated RPP benefits (within prescribed limits) to her RRSP; her former employer had made vested contributions for the years 1998 through 2012............................................................................ $210,000 Spousal support Under the terms of her separation agreement signed in September 2012, Dr. Matthews paid the following amounts for support of her husband: Support ($500 a month for September-December) ........................................... $ 2,000 Rent on his new Oshawa apartment ($750 a month for September-December) ...3,000 Moving expenses from Oshawa to Burlington Gas for house-hunting trips (four trips made during late August 2012) ....... $ 40 Selling costs of former Oshawa home (owned 100% by her; sold September 15, 2012): Real estate commissions .............................................................. $ 12,000 Legal fees .................................................................................. 1,050 Costs of purchasing new Burlington home: Legal fees .................................................................................. $ 850 Land transfer tax ......................................................................... 3,250 Costs of moving herself and her household effects: Moving van to transport belongings .................................................. $ 600 Gas to drive herself and her daughter (120 km driven) ............................... 15 Hotel (2 nights while new home was being painted and cleaned; 2 X $100)...... 200 Meals (same two days as above 2 x $55) .............................................. 110 You have determined that the distance from her new home to Joseph Brant Hospital is 3.5 kilometers. The distance from Joseph Brant Hospital to her former home was 115 kilometers. Care of her daughter Part-time nanny employed January 1-August 31 .................................$ 8,976 YMCA overnight summer camp for two weeks in July while nanny was on vacation ($200 a week)........................................................................................ 400 Fall term (September-December) tuition fees for private school (excluding before and after school daycare) ...........................................................................4,000 Before and after school daycare for September-December (provided on premises of private school) ..................................................................................... 720 Fall term (September-December) transportation to private school .............. 1,200 Registered retirement savings plan contributions Personal contributions through employment (March-December 2012) ..... 10,000 Personal contributions through employment (January-February 2013) ...... 4,000 Her 2011 earned income for RRSP purposes was $120,000; her employer had reported a pension adjustment on her 2011 T4 of $9,500; she had no unused RRSP contribution room at the start of 2012 and no undeducted balance of RRSP contributions Legal fees paid Legal representation during separation proceedings to establish requirements to make support payments ............................................................................ $ 1,600 Appeal of her 2010 income tax assessment (which she won) .................. 1,200 REQUIRED Complete the calculation of income under Division B. Show all calculations whether or not they are necessary to the final answer. Explain briefly any items not used in your calculations.