Answered step by step
Verified Expert Solution
Question
1 Approved Answer
plz help. thank you Question 6 (20 marks) An individual needs your help to calculate his personal income tax: a. An individual who resides in
plz help. thank you
Question 6 (20 marks) An individual needs your help to calculate his personal income tax: a. An individual who resides in Ontario has net employment income of $120,000 for 2023. b. His employer withheld CPP and El premiums totaling $4,756, of which $631 were CPP enhanced contributions. c. He maintains a small portfolio of investments that resulted in a taxable capital gain of $5,000 from the sale of qualified small business corporation shares (the capital gain deduction is available). d. The investments also generated eligible dividends of $8,000 and non-eligible dividend of $3,000 from Canadian Corporations e. The investments also generated interest income of $10,000 from Canadian banks and $2,000 from US. From the $2,000 of US interest income, $300 ( 15% of $2,000 was witheld on account of foreign taxes. f. The individual is single and 40 years old. *Notes - Eligible dividend gross-up rate 138%, tax credit rate 6/1138% - Non-eligible dividend gross-up rate 115%, tax credit rate 9/1315% Basic personal amount: $15,000 for individuals with net income not exceeding $165,430 Employment amount $1,368 CPP/El amount = amount paid - enhanced CPP contribution Foreign tax credit: limited to 15% of foreign income earnedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started