Question
Miss Joanna Black comes to you for advice in December, 2020. For year 2020, was a year of considerable change and turmoil for her. Her
Miss Joanna Black comes to you for advice in December, 2020. For year 2020, was a year of considerable change and turmoil for her. Her job in Waterloo, Ontario, Waterloo Ltd. , a Canadian public corporation, was finished because of reorganization of the Company. She had been with this company since 1987. She accepted another job in Brampton, Ontario, but it required her to move there. Her divorce from her former husband became final in 2019. Miss Joanna who was already a single parent of a nine year old daughter decided to adopt a five year old child locally on May 1st, 2020. By June 2020, after completing her move to her new job, the adoption was finalized. All legal cost related to the adoption totaled $15,400. Information on receipts and benefits: 1. The available T4 slip information for the year 2020 indicates (not completed):- i. Income Taxes withheld..$34,000 ii. CPP & EI. 3,499 2. Interest on Canadian savings bonds.$ 1,725 3. Dividends from Resident Corp.$ 2,000 4. In Waterloo Miss Joanna had a home and a cottage which was not subject to the division of property at the time of the divorce. When she moved from Waterloo to Brampton in 2020 she sold both properties. She had purchased the home in 2004 for $300,000. She sold the home in May of 2020 for $650,000. The real estate commission paid on this sale was $25,000. The cottage was purchased in 2005 at a cost of $360,000 and was sold in September 2020 for $860,000. The real estate commission on this sale was $30,000. Disbursements and withholdings: 5. Interest on money paid to buy dividend paying shares $ 600 6. Registered retirement savings plan contributions made on.. $24,500 a. -February 14th, 2020 (2019 earned income was $123,000 with a P.A. of $6,000). She had unused deduction room of $10,000. 7. Costs incurred to move from Waterloo to Brampton: a. Gas and direct expenses incurred to move (72 kms) $ 20 b. Trailer rental to move her belongings $ 75 c. Cost of shipping remaining household effects $ 2,000 d. Cost of staying at a hotel ($125) and meals ($55) for 1 day $ 180 i. (while waiting for her household furniture to be unpacked) e. Interest on money borrowed to buy dividend paying shares $ 600 Additional Information:- 8. Miss Joanna made donation to the Salvation Army throughout the year amounting to $5,000. 9. She contributed $2,000 to the Democratic Party of the U.S.A. and $2,000 to the Federal Liberal Party of Canada. Required: Based on the information provided, prepare a personal tax return as a base for the advice
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