Martin's common-law partner is Brian Lassiter. Brian is 48 years old and is legally blind. Brian has 2016 income from investments and Universal Child Care Benets of $9,400. Eight years ago, Martin and Brian adopted three brothers from a third-world country. Information on these children is as follows: David is 15 years old, in good health, and has income from part time jobs of $10,500. Devon is 20 years old and has serious breathing problems that prevent him from working on a full time basis. He lives with Martin and Brian and has income from part time jobs of $5,150. Derek is 22 years old and attends university on a full time basis for 8 months of the year. Martin pays his tuition fees of $10,300, along with textbook costs of $1,200. He lives with Martin and Brian and is in good health. He has self-employed income of $13,500. Assume he pays no CPP contributions on this income. Other Information: 1. During 2016, Martin spent $12,300 on employment related meals and entertainment with clients of his employer. His employer reimbursed $7,300 of these costs. 2. During 2016, Martin makes his regular annual contribution of $2,000 to a registered charity, The Shepherds Of No Hope. (Martin is a very pessimistic individual.) 3. The family's 2016 medical expenses, all of which were paid by Martin, were as follows: Martin and Brian $ 2,200 David 1,700 Devon 10,600 Derek 4,500 4. Martin buys monthly transit passes for David and Derek. The cost is $85 per month per child. The passes covered 10 months during 2016. 5. During 2015, Martin received options to purchase 500 shares of his employer's stock at a price of $45 per share. At the time the options were granted, the market price of the shares was $50 per share. During July, 2016, when the shares are trading at $70 per share, Martin exercises all of these options. He is still holding these shares on December 31, 2016. 6. As interest rates continue to be very favourable, Martin and Brian purchase a residence near the rented residence that they have lived in for the last 15 years. The cost of the new residence is $480,000 and, to assist with the purchase, Martin's employer provides a $280,000 interest free loan. The loan was granted on July 1, 2016 and will have to be repaid on July 1, 2021. Assume the prescribed rate is 1 percent throughout the year 2016. TIF Problem Four - 12 7. Martin is provided with an automobile by his employer. The automobile was purchased at a cost of $45, 200, including HST at 13 percent. During 2016, the automobile Is driven 48,000 kilometers, of
