Question 1

Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties.

Ms. Winters is given full possession of the car and is allowed to use it for personal needs.However, when she is not using it for employment or personal activities, it must be returned to Peterman's premises so that it can be used by other employees.

The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company has deducted maximum CCA.

During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs.These costs totaled $11,350 during the year.

Required: Ignore all GST/PST/HST implications.Indicate the minimum taxable benefit that would be allocated to Ms. Smith in each of the following Cases:

Case A Ms. Winters has use of the car for 11 months of the year.Personal use during the year totals 8,000 kilometers.

Case B Ms. Winters has use of the car for 9 months of the year.Personal use during the year totals 15,000 kilometers.

Case C Ms. Winters has use of the car for 7 months of the year.Employment use during the year totals 9,000 kilometers.

Question 2

On September 1^st, 2018, Mr. Payton moves from Sudbury to Ottawa (Ottawa is 484 kilometers from Sudbury) for a new job.

He lived in a rented apartment in Sudbury and purchased a house in Ottawa.

Legal fees and other costs associated with the acquisition of this house totaled $4,500.

The total cost of the actual move, including the costs of moving his personal possessions, was $16,500.

In addition, he spent $750 on a house hunting trip to Ottawa, but he did not decide on a house until his return to Sudbury.

He also incurred a $2,000 penalty for breaking his lease in Sudbury.

During the year, his salary totaled $60,000, of which $45,000 was earned in Sudbury and the remaining $15,000 was earned in Ottawa.

His new employer is prepared to pay up to $8,000 towards the cost of the move.

Required: Determine Mr. Payton's maximum moving expense deduction for 2018, as well as any carry forward available.

Question 3

Required: Determine the maximum amount of 2018 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax Payable by the taxpayer in each of the following independent Cases. A calculation of Tax Payable is NOT required.

1.Mr. Holm has Net Income for Tax Purposes of $55,000, all of which is investment income.He is single and provides support for his mother.His mother is a widow who resides in Latvia and has income of $1,100 per year.

2.Mrs. Thomas has Net Income for Tax Purposes of $250,000, all of which is employment income.Her employer has withheld and remitted the required EI and CPP amounts.Mrs. Thomas was married on December 1, 2018.Her wife, a nursing student, had salary of $21,000 for the period from January 1 to November 30, 2018 and $3,200 for the month of December 2018.

3.Mr. Jackson has Net Income for Tax Purposes of $75,000, all of which is rental income.He lives with his common-law wife and their 2 children.The children are 7 and 8 years of age and have no income for the year.His wife has Net Income for Tax Purposes of $8,500.

4.Mrs. James is married and has Net Income for Tax Purposes of $110,000, none of which is employment income or income from self-employment.Her 19-year-old dependent daughter attends university.Her husband has Net Income for Tax Purposes of $10,500, and her daughter has Net Income for Tax Purposes of $8,500.Her daughter does not wish to transfer her tuition, education or textbook credits.

5.Mr. Morant is 68 years old and has Net Income for Tax Purposes of $29,500, which is comprised of Old Age Security benefits and pension income paid out of his Registered Retirement Income Fund. He is single andhe has a son who is 13 years old and is deaf.He has no income of his own.

6. Ms. Young is divorced and maintains a residence far from her former spouse.She has custody of the 2 children from the marriage.They are aged 9 and 12 and in good health. They both earn $750 from paper routes.Her Net Income for Tax Purposes is $72,000, all of which is spousal support payments.