Mr. Zeus Juno is preparing his 2021 tax return and having learned that you had taken the Taxation course at George Brown College, he has come to you for some assistance in computing his income from various sources, deductions, Federal Tax Credit and Federal Tax.

Zeus age 49 years old and Hera Goode age 44 have been companions for the last

3 years cohabiting in a conjugal relationship (common- law relationship).

Zeus fathered a child from his previous marriage to Alcmene, son Herakles age 15 who lives with Alcmene .

Hera also has 2 children from her previous marriage, son Apollo 17 and daughter Athena age 19. Hera has custody and both children live with them and are dependant and supported by both (Zeus &Hera).

You are provided with the following information:

Mr. Juno is employed by Cronos Enterprises Limited (CEL) a large Canadian public corporation as vice president of Operations.

During 2021, Zeus received a gross annual salary of 197,000 ($67,000 from Victoria BC office and $ 130,000 from Toronto office).

Zeus employer withheld the following amounts from her 2021 remuneration:

EI Premiums $ 890

CPP Contributions 3,166

RPP Contributions- 6,300

Group Term Life Insurance Premiums 990

United Way Donation 2,000

Income Tax Withheld (Fed.+Prov) 59,900

OTHER EMPLOYMENT INFORMATION:

i) During 2021,Zeus pays dues to his professional association(recognized by statute)of $195.

ii) CEL paid the following amounts on behalf of Zeus:

Registered Pension Plan ( a matching contribution of) $ 6,300

Group Term Life Insurance ( a matching contribution of) $ 990

Group sickness/ Accident/Disability insurance Plan (100%) Sun Life $ 2,500

Private Health Plan Premiums (100%) $ 910

iii) On April 1, 2021, Zeus received an interest free loan from CEL, in the amount of

$120,000 to assist in the financing of a new home, as he was relocated (by his

employer ) from Victoria B.C. to Toronto Ontario. The agreement requires that the

$120,000 owing be repaid over 4 years in equal payments of $ 30,000 on each

anniversary date.

CRA Prescribed 2021 rates for first and second quarters in1% ,third and fourth 2%.

iv) Zeus incurred moving expenses, qualifying as allowable deduction for tax purposes,

in the amount of $29,900. CEL reimbursed the full amount of $ 29,900.

In addition, to assist her move, CEL also agreed to compensate Zeus for one-half of the

$40,000 loss on the sale of her Vancouver home. The payment was made on April 1, 2021.

v) Zeus under his contract of employment is required: to carry on the duties of

employment away from the employers place of business, to pay all expenses and was

not in receipt of a reasonable allowance.. Zeus employer has signed a T2200 form

certifying this requirement. Mr. Juno incurred the following employment related

expenses during 2021 (All Reasonable): Meal $1,400 (while away municipality;>12hrs)

+ Accommodation $3,800 + Airline Tickets/Travel $3,500 + Entertainment $1,600

=Total Expenses $ 10,300.

vi) Zeus received options to buy 20,000 shares of her employers(CEL) common stock

at a price of $4.00 per share on August 2, 2020. At this time the shares were trading at

$3.00 per share. Zeus exercised these options on May 12, 2021 , when the shares

were trading at $5.00 per share. Mr. Juno, sold 3,000 of the 20,000 shares on

December 16, 2021 for $6 per share. Zeus did not own any other shares of CEL.,

other than the ones acquired.

INVESTMENT INFORMATION

vii) April 1, 2021, Zeus took out a bank loan in the amount of $ 38,000 at 4% per

annum. The 2021 interest paid on this loan was $ 966. He immediately invested the

funds in shares of Canadian Controlled Private Corporation; shares in a Taxable

Canadian (Public)corporations; shares in a Foreign Public Corporations

The 2021 results for his investments are as follows:

a) CCPC- as one of the shareholders in in his brothers CCPC -Bro Ltd. ( successful

company) Zeus, received a non-eligible dividend of $ 200.

In addition, he received a Capital Dividend of $4,000 from Bro Ltd. .

b) Taxable Canadian Public Companies received an eligible dividend of $ 400 from

holdings in this public company.

c) Foreign Public Company- Preferred Shares in 2021 Zeus purchased 500

common shares of a US Public Company. During 2021 these common shares paid a

dividend of $198 (Cdn funds) net of withholding tax . The US government withheld

10% - $22(Cdn funds.)

viii) Mr. Juno invested $10,000 in a GIC- (debt instrument) investment contract) on

July1,2020. It has a 5% three year (mature on June 30, 2024), quarterly compound

interest. The terms of the instrument call for payment of interest to be paid at the

maturity date of the instrument. Interest accruing on the GIC has been

as follows: July 1,2020 to September 30,2020 $ 125

October 1,2020 to December 31,2020 $ 128

January 1,2021 to March 31,2021 $ 132

April 1,2021 to June 30,2021 $ 138

July 1,2021 to September 30, 2021 $ 142

October 1,2021 to December 31,2021 $ 145

ix) Zeus, owns 500 shares of Gaia Ltd. The ACB is $24 per share ($12,000).On July 14,

2021, Mr. Juno sold all of these shares at $17.50 per share ($8,750). On August 2,2021,

Zeus acquires 700 of the same shares of Gaia Ltd. At a cost of $16.75 per share

($13,750). He continues to hold these shares for the remainder of 2021.

x) Zeus makes frequent purchases of common shares of OLYMPUS Ltd. His

transactions during 2020 and 2021 are as follows:

Type Of Number Cost (Proceeds)

Date Transaction Of Shares Per Share Total

February 23,2020 Purchase 300 $ 11.75 $ 3,525

May 12, 2020 Purchase 450 13.50 6,075

Aug.2, 2020 Purchase 200 12.00 2,400

Dec 7., 2020 Sale (350) (16.50) ( 5,775)

February 10,2021 Purchase 400 18.25 7,300

October 1, 2021 Sale ( 600) (20.75) (12,450)

xi) As a result of the move from Vancouver to Toronto, Zeus disposed of a number of

his personal assets. The proceeds of disposition and the adjusted cost base of the various

items are as follows: Adjusted Proceeds Of

Cost Base Disposition

Collector Car $24,000 $25,000

Marble Sculpture 600 5,000

Antique Furniture 21,000 8,000

Stamp Collection 27,000 23,000

Saxophone 2,700 800

xii) Zeus owns two rental properties : 54 Eros St, and 7 Eurus St.

The following information pertains to these two rental properties:

54 Eros St. 7 Eurus St.

Date obtained 2017 2018

Cost of Land $ 100,000 $ 130,000

Cost of building $ 200,000 $ 230,000

UCC Jan1/21; Class 1: 4% $ 188,160 $ 225,400

Rental revenue in 2021 $33,810 $ 26,107

Expenses:

Mortgage Interest $ 9,700 $10,900

Property taxes $ 9,900 $ 8,500

Utilities $ 6,300 $ 6,900

Other expenses $ 2,110 $ 2,700

Total Expenses $ 28,010 $ 29,000

Net rental income before CCA $ 5,800 $ -2,893

The rental property 7 Eurus St. was sold November 1, 2021 for $ 410,000. A break-

down of total sale is as follows: $160,000 for the land and $ 250,000 for building. Real

estate commission on sale of property was $ 15,000.

The term of the sale required the buyer to provide a down payment of $110,000 with the

remaining balance of $ 300,000 to be paid over a five year period (5 year term) at 4%

/annum interest (payable monthly-) amortized over 25 years (blended payments).

Interest received in 2021 $ 933. Mr. Juno uses a reserve to defer as much of his gain

as possible.

xiii) Mr. Juno on January 5,2020 bought 800 common shares Pegasus Ltd. a

Taxable Canadian Corporation [public company] for $40,000 ($40 x 1,000shares).

The current ( 2021) Trading Value of the shares is $50,000 ($50/share x1,000).

In addition, these shares provide an annual eligible dividend of $2.00 per share

$2,000(1,000 x2.00). January 1, 2021, Zeus gifted 200 shares of his Pegasus

Ltd. Common shares to each of the following : Hera his common-law partner;

Herakles his 15 year old son ; Appolo 17year old son and Athena his 20 year old

daughter.

Zeus also sold 200 shares to his 60 year old sister ,Apate, at cost ($40/share).

Zeus (the transferor) elected out of the rollover (not to have the rollover apply )

under s73(1)ITA [gifted no consideration]

xiv) Net Capital losses Carry forward from prior years Total $11,990

OTHER PERTINENT INFORMATION:

xv) As a result of a work related accident, Zeus received Workers Compensation

payment of $ 1,400 in 2021.

xvi) Under the terms of separation agreement signed in September 2015, Zeus was required

to pay Alcamene child support of $4,000 per month and $1,000 per month

spousal support. Zeus in 2021 paid a total of $60,000.

xvii) Mr. Juno paid legal fees of $1,200 in 2021 to Appeal her 2020 Income Tax

Assessment( she won).

xviii) During 2021, Mr. Juno contributed $5,500 to his Tax Free Savings Account

(TSFA) and $5,500 to TSFA account for Hera.

xix) Zeus made a total RRSP contributions of $28,000 of which $ 23,000 is from

March 1,2021 to December 31,2021 and a RRSP contribution of $5,000 in the first 60

days of 2021 (January 1/22- March 1,2022). Zeus had $ 6,000 unused RRSP

deduction limit room carried forward from prior years.

Zeus 2020 income of $163,000 consisted of the following:

Net employment income before deduction for RRP of $4,000 --- $167,350

Net Rental income after CCA deduction ---------------------------- $ 7,250

Spousal Support pai ($ 12,000 )

Taxable Eligible dividends from Canadian Corporations ------- $ 1,280

Taxable Non- Eligible dividends from Canadian Corporation---- $ 1,600

Taxable Capital Gain ---------------------------------------------- $ 7,520

The pension adjustment reported by Aphrodites employer of $ 10,800.

xx) During 2021, Mr. Juno paid for the following eligible medical expenses not covered by

Health Plan:

For himself, Hera, and Apollo $ 1,590

For Athena 1,410

Total eligible medical expenses paid by Zeus $ 3,000

xxi) In addition to payroll deduction to United Way, Zeus Contributed to the following

registered charities :

Cancer Society - $3,000

Easter Seal $3,000

Sick Kids Hospital $1,000

xxii Information relating to, Heras, Apollos and Athenas Income is as follows:

Hera: Zeuss Common law partner age 44 years old . Shortly after the move to Toronto,

Hera set up a business that provides party planning service for most Occasions.

The particulars of GAAP Income is as follows:

Heras Party Planning

Income Statement

For the period April 1, 2021 - December 31, 2021.

TOTAL REVENUE $151,200

Costs associated with these sales are as follows:

Wages-part-time workers $ 53,000

Packaging Materials 13,400

Shipping Costs 25,600

Miscellaneous Office Supplies 4,560

Telephone Internet (Total Charge For The Period) 1,000

Printing Of Posters and Brochures Distributed 3,440

Entertainment Expenses 24,800

Other Expenses 10,800

Depreciable assets purchased during the year

(Class 8:20%) Office Furniture cost 20,000 Acct. amortization/5 4,000

(Class 50:55%) Computer(cost $ 8,000) Accounting amortization/4 2,000

Class 12:100% -Computer software (cost $2,000) Accounting amort/1. 2,000

Work space in home 100% Total cost that include : 16,500

(mortgage interest, utilities, maintenance, property taxes, etc

(Note: work space in home involves 20 percent of the

total floor space in the residence.

TOTAL EXPENSES $161,100

Heras Net Accounting Business Income ( $ 9,900)

[Note: This is Heras only income]

Apollo: Heras son age 17years old(dependant &supported by both). Apollo is in his final

year of high school (grade12).He worked occasionally at McDonalds on part-

time basis and earned employment income of $ 1,450.

Athena: Heras daughter age 19 years old (dependant &supported by both) . Athena is a full

time university student. She is in her 2nd year at Carleton University. Form T2202

Tuition and Enrolment states tuition fee paid in 2021 ,( January 2021 to April

2021 $3,400 and September 2021-December 2021 $3,500) of $6,900. Athena is

Willing to transfer any unused part of her tuition tax credit to Zeus.

Athena was a successful applicant for a scholarship and was awarded $8,000 to

assist her with tuition costs .

During the summer of 2021, Athena had employment (net)income of $13,000

which she earned working as a waitress at a fine dining establishment.

REQUIRED:

Mr. Zeus Juno has asked you to assist him in calculating his Part I Income Tax under Division B, Division C and Division E of the Act (use appropriate ordering rules in section 3, 111.1 and 118.92). [Net employment income; Income from property; Other income; Taxable capital gains less allowable capital losses; Other Deductions:

Net Income For Tax Purposes; Taxable Income; Federal Tax Payable.]