Mr. D. Diesel formally separated from his wife on January 1, 2021. Custody of his four (4) children, aged 18, 13, 12 and 11, was given to him as part of an agreement worked out with his wife in family court. To make a fresh start, effective March 31, 2021, he resigned his position in Toronto, where he had been employed by the same employer since 1985 and took a position in Victoria, British Columbia. In previous years he had always prepared his own tax returns but because of the extraordinary events of 2021, he was having difficulty with the calculation of his income and whether he had income tax payable or was eligible for a refund. He has come to you for help with these calculations.

The following amounts are the combined total from both employers (Victoria and Toronto). Salary was $75,000. The employers paid his group life insurance premiums totalling $550 in 2021. In addition, in 2021 Mr. Diesel contributed $5,100 into his employers registered pension plans. During the year, the employers withheld Canada Pension Plan contributions totalling $3,166 and Employment Insurance premiums totalling $890.

Mr. Diesel earned $9,100 interest from Canada Savings Bonds and received eligible dividends of $905.80 from a Canadian public corporation. Mr. Diesels also had a Tax-Free Savings Account which earned him $3,200 in interest in 2021. To buy the shares of the public corporation he borrowed $10,000 on his line of credit from the bank and during the year he paid $250 in interest on that loan. Mr. Diesel also had an outstanding loan from shares he purchased in a non-eligible Canadian Controlled Private Corporation which went bankrupt and which shares were determined to be worthless in 2019. In 2021 D. Diesel paid $4,500 in interest on this loan.

Mr. Diesel also sold some shares of XYZ Corporation which he purchased for $200,000 in 2016 and sold for $212,000 in 2021. In 2021 he also sold a cottage he owned jointly with his wife and his share of the taxable capital gain on the cottage was $5,500 as it was not his/their principal residence.

The following is additional information regarding Mr. Diesel:

1. He had the following receipts during 2021:
   1. A lump-sum payment of $20,000 out of his Registered Pension Plan (RPP) which he transferred directly into a Registered Retirement Savings Plan (RRSP)
   2. A retiring allowance of $60,000 from his previous employer (Toronto) for long service.
2. He made the following payments in 2021:
   1. RRSP contribution for 2021 was $70,000. His earned income in 2020 was the same as 2021 and his pension adjustment for 2020 was $5,000.
   2. Legal fees of $6,500 related to representations in family court regarding his separation, and $1,250 appealing a tax assessment which he lost.
   3. Charitable donations of $1,250.
   4. He was required to make maintenance payments to his wife pursuant to an agreement made by order of the court. Under the court order he was required to make monthly payments to her for maintenance totalling $8,000 in 2021 and in addition was also required to make monthly payments directly to the owner of her condo apartment totalling $5,000 in 2021
3. Mr. Diesel had a net allowable capital loss of $11,466 in 2006 which he has not used.
4. Mr. Diesels oldest child, Scott, attends Queens University in Canada and in January paid $64,000 in tuition fees for eight (8) months of full-time attendance in 2021. Scott earned gross employment income of $2,500 during the summer. No deductions were taken from Scotts pay. Scott has agreed to transfer any unused tuition tax credit to Mr. Diesel.
5. Mr. Diesels other children do not have any income.

Required:

Calculate Mr. Diesels:

1. Subdivision a, b, c, d, and e amounts separately (i.e., Income or Loss from an Office or Employment; Income or Loss from a Property; Taxable Capital Gains and Allowable Capital Losses; Other Sources of Income; and, Deductions in Computing Income, respectively).
2. Net Income for Tax Purposes (Division B)
3. Taxable Income (Division C)
4. Net Federal Tax Payable after calculation of tax credits. (Division E)

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