JOSH AND JENNA ISAACS ARE MARRIED AND LIVE WITH ALL OF THEIR CHILDREN.

THEY HAVE ASKED YOU TO PREPARE THEIR INCOME TAX RETURNS FOR 2020

ON CANTAX (NOT THEIR CHILDREN'S)

JOSH: SIN # (Leave Blank). ; BIRTH: DECEMBER 15, 1965.

JENNA: SIN # (Leave Blank): BIRTH: JANUARY 12, 1967.

NOTE: (USE ANY ADDRESS AND ANY OTHER PERSONAL INFORMATION REQUIRED!)

CHILDREN:

MARY-BIRTH: MAY 11, 2008; NET INCOME: $0; DISABLED: HEARING LOSS;

MIKE -BIRTH: OCTOBER 12, 2000; NET INCOME/Taxable Income: $15,000; FULL-TIME

(8 MONTHS) COLLEGE STUDENT: TUITION: $10,000 PAID BY PARENTS.

Josh worked 500 Hours this year as a Volunteer Fire Fighter. (Volunteer Fire Fighter Credit)

The parents also paid $50,000 in Adoption Fees to officially adopt Mary, this year.

JOSH AND JENNA 'S INVESTMENT INCOME- (Line 12000 and 12100) T5 details follows

TD BANK INTEREST $2,000 (Josh)

CANADA SAVING BONDS INTEREST $700 (Jenna)

SCOTIA BANK ELIGIBLE DIVIDEND RECEIVED IN CASH: $3,000 (Josh)

RENTAL INCOME: (JENNA) (Line 12600)

(20% of Building is used for personal use)

COMMERCIAL BUILDING CLASS 1, UCC (Dec 31, 2019): $200,000 (net of 20% personal use)

GROSS RENT - $80,000

MAINTENANCE EXPENSE - $40,000 (non capital, and deductible)

MORTGAGE INTEREST - $2,000

PROPERTY TAX - $3,000

STOCKS AND OTHER CAPITAL GAINS: (JOSH) (Line 12700)

SOLD HIS Listed Personal Property (Remember special rules for this item!)-Painting FOR $8,000 WHICH COST HIM $100 TO PURCHASE

SOLD XYZ SHARES - COST $30,000; PROCEEDS $70,000 ( Public Company)

PRIOR YEARS' UNUSED ALLOWABLE CAPITAL LOSSES $5,000 (2005) (Hint: use Line 25300)

INVESTMENT INTEREST EXPENSE - $2,500; (Line 22100, Worksheet)

PROFESSIONAL CONSULTING BUSINESS (JOSH) (Use Line 13700 Professional)

REVENUE $60,000;

OFFICE EXPENSES $5,000;

CPA PROFESSIONAL FEES- $500

Home Office Expenses: (200 sq ft of 2,000 sq ft of home; Hydro was $1,000; Insurance was $2,000; Property tax was $3,000)

Note Not entitled to HST Credit

AUTO: TOTAL KM DRIVEN IN 20120-30,000, BUSINESS-70% 2017 Jeep

Total expenses: gas($5,000); Insurance ($1,200);Maintenance($4,000);License($120)

Auto cost (UCC Dec 31, 2019 - $20,000, claim maximum)

PRIOR YEARS' UNUSED BUSINESS LOSSES $30,000 (2011) (Hint: Use Line 25200)

CANTAX T1- ASSIGNMENT #1, CONTINUED PAGE #2

EMPLOYMENT INCOME-JOSH (XYZ Co.) T4 details follows

SALARY-$100,000

Deductions:

CPP Maximum for this year - $2,898

EI Maximum for this year - $856.36

INCOME TAX - $30,000

RPP - $3,000

UNION DUES - $500

CHARITY - $300

No pension adjustment

JOSH CONTRIBUTED $5,000 TO HIS RRSP IN JANUARY 2021.

JOSH'S Last Years EARNED INCOME = $20,000. NO PENSION ADJUSMENT.

EMPLOYMENT INCOME - JENNA (Indiana Corp) T4 details follows

GROSS-$40,000

Deductions:

EI $589

CPP $1,559

RPP-$1,000

INCOME TAX $12,000

No pension adjustment

JENNA CONTRIBUTED THE MAXIMUM ALLOWED TO HER OWN RRSP (2020) IN JANUARY 2021

JENNA'S Last Years EARNED INCOME = $50,000; PENSION ADJJUSTMENT. (Last Year) =$2,000.

Calculate her RRSP contribution in January 2021

DONATIONS :( JOSH AND JENNA)

Charities: UNITED WAY - $1,500; Hospital of Sick Kids - $7,000

QUALIFIED MEDICAL EXPENSES - $10,000 (JENNA)

CHILD CARE EXPENSE (2020) - $5,000 (NANNY) USE ANY NAME AND ADDRESS.

REQUIRED:

1.Using Cantax T1-2020 Calculate the Couples MINIMUM INCOME TAX PAYABLE for Josh and Jenna