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On January 2, 2022, Jackson Jones, a professional engineer, moved from Calgary to Edmonton to begin employment with Camden Ltd., a large public corporation. Because
On January 2, 2022, Jackson Jones, a professional engineer, moved from Calgary to Edmonton to begin employment with Camden Ltd., a large public corporation. Because of his new employment contract, Jackson requires assistance in determining his employment income for tax purposes. He has provided the following financial information: His salary is $126,500. From this, Camden deducted the appropriate income tax, Employment Insurance premiums of $953, Canada Pension Plan contributions of $3,500, registered pension plan payments of $8,000, and charitable donations of $1,200. Camden provides its executives with a bonus plan. Jacksons 2022 bonus was $26,600, of which $6,700 was received in December and the balance in March 2023. In November, Jackson asked his employer to loan him $16,000 so that he could acquire an investment. Camden advised him that it was company policy not to make loans to employees. However, they gave him the $16,000, stipulating that it was an advance against his 2023 salary, which would be reduced accordingly. Jackson is provided with a company car, which he drove 18,600 km for employment duties and 11,000 km for personal use. The car is leased at $500 per month. Camden paid the total operating costs of $9,400. The car was available for personal use throughout the year. Jacksons moving expenses to transport his belongings to Edmonton were $3,000. Camden paid this cost directly to a moving company on Jacksons behalf. Jackson travels extensively for Camden. In December, he and his spouse used some of the travel points he had accumulated from this travel to attend his fathers funeral in Toronto. As a result, he saved the normal airfare of $400 per ticket. Camden pays the following additional amounts for Jackson: Allowance ($400 per month) for acquiring executive apparel 4,800 Investment counsellor fees as part of Camdens counselling program 800 Golf club dues (Jackson rarely uses the club to conduct business) 2,000 Jackson pays for the following: Dues to the engineers association $ 1,070 Laptop computer and printer 3,930 Computer supplies (paper, etc.) 130 Camden has asked each senior executive to acquire a laptop computer at their own expense for work during travel Jackson sold 1,330 shares of Evert Inc. (his former employer) at $10 per share. Evert is a Canadian-controlled private corporation. The shares were purchased under a stock-option plan in 2019 at $3 per share. Appraised value at that time was $5 per share. Required: Determine Jacksons employment income for tax purposes for 2022
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