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Margaret Lykaios is the president and major shareholder of Measureup Ltd . , a Canadian - controlled private corporation that operates a construction business in
Margaret Lykaios is the president and major shareholder of Measureup Ltd a Canadiancontrolled private corporation that operates a construction business in Regina, Saskatchewan. Measureup earns only business income which is all subject to the small business deduction.
In she had a number of financial transactions. She has asked you to help her prepare her tax return and provide advice on other tax matters. The following additional financial information is provided for :
Margarets gross salary was $ from which Measureup deducted the following amounts.
Income tax $
CPP and EI premiums
Private health insurance premiums
Group sickness and accident insurance premiums
In addition to her salary, Measureup paid $ to a deferred profitsharing plan, $ of private health insurance premiums, and $ of group sickness and accident insurance premiums.
Margaret is required to use her own automobile for company business. For this, Measureup pays her an annual allowance of $ She purchased a new automobile for $ plus HST and received $ as a trade on her old car. At the end of the previous year, the old car had an undepreciated capital cost balance of $class Of the km driven in km were for employment purposes. Margaret incurred automobile operating costs of $
For three months during the Margaret was sick and could not attend work. She received $ from the companys group sickness and accident insurance plan. Since the plans inception, Margaret had paid premiums totalling $
Margaret purchased a warehouse property and leased it to Measureup to store construction equipment. The property cost $land building The building was originally constructed after March The price for the land includes $ of permanent landscaping completed just after acquisition. The rental income is summarized in the following chart.
Rent received $
Expenses:
Insurance $
Property taxes $
Interest
Repairs:
General maintenance
Storage shed addition $ $
Income $
Margaret is a partner in a computer software business but is not active in its management. The partnership financial statement shows a profit of $ for the year ended December The profit consists of $ from software sales and $ from interest earned.
On July Margaret purchased a threeyear guaranteed investment certificate for $ with interest at The interest compounds annually but is not payable until July
Margaret received made the following additional receipts disbursements
Receipts:
Dividends Eligible from Canadian public corporations $
Dividends Noneligible from Measureup
Dividends from foreign corporations net of foreign withholding tax
Winnings from a provincial lottery
Disbursements:
Dental expenses for children
Donation to a charity
Safety deposit box
Life insurance premium used as collateral for personal bank loan
Investment counsel fees
Required:
Complete the attached table. Business income:
Partnership Business Income
$
Property income:
Paragraph c Other deductions
Net Income for Tax Purposes
Rental Income:
Red text indicates no response was expected in a cell or a formulabased calculation is incorrect; no points
deducted.Determine Margarets net income for tax purposes in accordance with the aggregating formula of Section of the Income Tax Act for Assume other deductions total $
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