Question
jessie is employed at a startup that provides meal kits. She grew with the company as they began and as a result she has reaped
jessie is employed at a startup that provides meal kits. She grew with the company as they began and as a result she has reaped some rewards in stock options and her income has increased for her contributions to growing the business. She earns $92,500 gross per annum and got dividends from the Canadian controlled private corporation (CCPC) in the amount of $20,000 in 2019. Jessie lives downtown and doesn't own a car so she rents out her parking spot for $200 a month. The monthly fee she pays her condo corporation for it is $100 a month. Since Jessie has started to become more successful she has also been savings and investing. She contributed $10,000 to her RRSP account in 2019 and another $5,000 in February 2020. Jessie currently has the following accounts:
AccountInvestment Value2019 EarningsTFSA - Index Funds52,5006,700RRSP - Various Mutual Funds72,3005,200Bank Account - High Interest Savings7,500115
She had a non-registered account but sold everything to invest into the TFSA and RRSP in 2019. Here is a summary of the holdings that were sold:
HoldingBook ValueMarket ValueTelecom Common Shares4,8009,000Balanced Mutual Fund6,8005,200GIC one year term - 2.5%15,00015,000Big Bank Common Shares25,00036,200
You may use this website for the calculation of the tax details if you choose to. Either method you use you will need to show all inputs for each component in parts a through c - https://www.taxtips.ca/calculators/canadian-tax/canadian-tax-calculator.htm
a) Calculate her 2019 taxable income.
b) Calculate her 2019 tax payable.
c) Calculate her marginal tax rate for interest, dividends and capital gains based on her 2019 tax details.
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