In late 2019, Dr. Elaine Matthews separated from her husband, she maintained full custody of the couple's only child, a seven year old girl. Since May 1. 2004, Dr. Matthews had been working as a public health consultant for the Oshawa region. Around the middle of 2020 she had chosen to take advantage of a severance package from the Oshawa region. She accepted a staff position at Joseph Brant Hospital in Burlington, Ontario and moved directly from Oshawa to Burlington on September 1. 2020. She sold the former family home in Oshawa on September 15, 2020. Her husband had rented an apartment in Oshawa in late July 2020.

Dr. Matthews has some experience preparing her own tax returns but she has been so busy in recent months. She started her 2020 return but quickly decided she simply did not have time to finish it.

You met with Dr. Matthews to go over her tax information related to 2020 and determined that she had correctly calculated her income under Subdivision a, b, c of Division B to total $158,488.

Salary ( from former employer) 96,000

Salary ( from Joseph Brant Hospital) 60,000

Taxable benefits under section 6 of the Income Tax Act 1743

Registered Pension Plan contribution defined (6750)

Consulting income( reported as business income) 8000

Interest income from investment 540

Taxable dividends from investment 1250

Share of rental loss from childhood home inherited from her parents (1495)

Net taxable capital gains 4800

Interest paid on investment loans (2,400)

Loss from limited partnership investment (3,200)

Total 158,488

She provided you with the following additions relating to 2020:

Miscellaneous income

Severance from former employer 41,538

Transfer of RPP accrued from her former employer Her former employer made a direct transfer of her accumulated RPP

benefits ( within prescribe limits) to her RRSP; her former employer had

made vested contributions for the years 2004 through 2020---210,000

Spousal Support

Under the terms of her separation agreement signed in September 2020, 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 apartments ( 750 a month for September to December)--3,000

Moving expenses from Oshawa to Burlington

Gas for house hunting( 4 trips made during late August 2020)-----40

Selling cost of former Oshawa home ( owned 100% by her, sold September 15,2020

Real estate commissions---12,000

Legal fees ------1,050

Cost of purchasing new Burlington home

Legal fees ---------850

Land transfer tax ---------------------3250

Cost of moving herself and household effects:

Moving van to transport belongings------------600

Gas to drive herself and her daughter ( 120 km driven )-------60

Hotel( 2 nights while the new home was being painted and cleaned, 2 x 100) --200

Meals ( same 2 days as above, 2 x 55 ) ---- 110

You have determined that the distance from her new home to Joseph Bratt Hospital is 3.5 km.

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---8976

YMCA overnight summer camp for two weeks in July while nanny was on vacation ( 200 a week)--400

Fall term ( September to 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 to December) transportation to private school ---1,200

Registered Retirement Savings Plan Contribution

Personal contribution through employment ( March - December 2020)---10,000

Personal contribution through employment ( January - February 2021) ---4,000

Her 2019 earned income for RRSP purposes was 120,000, her employer had reported a pension adjustment on her 2019 T4 of 9,500; she had no unused RRSP contribution room at the start of 2020 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 2018 income tax assessment (which she won)---1,200

You have been asked to complete the calculation of her income under Division B. Show all calculations whether or not they are

necessary to the final answer. Explain briefly any items used in your calculations