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.

1	Particulars (Mr. Holm)	Amount
	Basic Personal Amount
	Spouse Amount
	Mother Amount
	EI Amount
	CPP Amount
	Canada Employment
	Eligible Dependent Amount
	Age Amount
	Pension Amount
	Canada Caregiver Amount
	Total credit base	0

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.

2	Particulars (Mrs. Thomas)	Amount
	Basic Personal Amount
	Spouse Amount
	Mother Amount
	EI Amount
	CPP Amount
	Canada Employment
	Eligible Dependent Amount
	Age Amount
	Pension Amount
	Canada Caregiver Amount
	Total credit base	0

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.

3	Particulars (Mr. Jackson)	Amount
	Basic Personal Amount
	Spouse Amount
	Mother Amount
	EI Amount
	CPP Amount
	Canada Employment
	Eligible Dependent Amount
	Age Amount
	Pension Amount
	Canada Caregiver Amount
	Total credit base	0