Navjit Bolina is single and a full-time employee but she is also pursuing her Master of Business Administration degree at a local university.  She is employed as a manager with public company in Toronto Ontario since 2015.  

Her financial transactions for the 2022 taxation year are shown below:

1) Navjit receives gross annual salary of $108,500, and the last paystub in the year 2022 shows the following amounts withheld by his employer:

Income tax

$20,000

Canada Pension Plan (enhanced contribution $461)

3,500

Employment insurance

953

Donation

900


2) The company does not have any registered pension plan.  However, the company does match the RRSP contribution made by its management staff.  For the year of 2022, Navjit contributed $4,300 to his RRSP and her company matched and contributed $4,300 to Navjit's RRSP as well.

3) During the year, Navjit was able to secure a major client for the company.  As a result, the company awarded a painting to Navjit.  The painting's value was estimated to be $800.

4) Navjit also owns 2 rental properties and she gathered the following information

Total gross rental income: $32,900
Expenses (exclude CCA): $26,500
Maximum CCA from the rental properties: $8,000
5) Navjit has invested stocks in several Canadian public corporations.  Overall, she received $5,000 in dividends.  She also sold some of the stocks which she bought 2 years ago.  The proceeds of the stocks were $20,000 but the cost was $7,400.

6) Navjit also disposed of some of her personal items in 2022:
 

Proceed

Cost

Jewelry

$1,800

$600

Stamps

2,000

800

7) Navjit always maximize her contribution to the TFSA and for the year 2022, the TFSA account earns $5,300 interest income from the GIC investment.  During the year, she has withdrawn $10,000.
 
8) To fund her study, she borrowed money her line of credit.  For the year 2022, she has paid $12,000 for her tuition and she paid $3,000 interest for using her line of credit.

9) 2022 was Navjit's lucky year, since she won a lottery draw and was awarded $50,000
 

10) Navjit started to volunteer as a firefighter.  Based on her record, she volunteered 120 hours in year 2022.
 

11) She has the following unused losses carryforward:
 

Listed personal property loss carryforward of $400
Net capital loss of $5,600
 

Required:
 

Part 1
 

For the 2022 taxation year, determine the following for Ayden:

 

Net income for tax purposes
Taxable income
Federal tax liability
 

Part 2

Explain any omitted items as income, deduction, and/or credits


Note

Marks will be not be given for federal tax liability calculation if tax rules applicable to 2022 were not used.

You are not required to reference legislation in the Income Tax Act.


Please answer the questions in great detail as it is a long question with all calculations.