REQUIRED

Using a tax preparation software - preferably the Profile software that is provided free of charge by Intuit Canada to students of this course - and the facts given below, complete the tax return (T1) for Mr. James Doode and his common-law partner, Susan Bond, for the 2018 taxation year, including all relevant schedules, forms and worksheets, e.g. Form T2125 for the calculation of business income, T776 for the rental income, etc. Ignore any GST or HST aspects. You must submit the completed tax returns for both James and Susan through the Case Study link on the Blackboard portal by attaching the file containing the data for both tax returns coupled together if you used the Profile tax software (the file should have a .18T extension if you are using the 2018 version of the software). Do not attach the program file for the Profile software (file called "profile.exe") as that file does not contain the data for the tax returns you prepared. No marks will be given for submitting the Profile program. how to calculate James and Susan income for an income tax return?

During 2018, James received $20,000 of eligible dividends on shares he owns of the Great Bank of Canada, a Canadian public company - see the T5 slip James received from the bank (box 24) for 2018. No income tax was withheld on that dividend. James and Susan also earned interest income for a total of $9,000 during 2018 from a joint investment account - see the T5 slip James and Susan received from the bank (box 13) as co-owners. No income tax was withheld on that income either. During the year 2018, James met with a financial planner to obtain investment advice on how to maximize his investment income. Fees of $3,000 were paid by James in 2018 to the financial planner. Following the advice obtained, James sold 1,500 shares of the Great Bank (a publicly traded company) that he had acquired over the last 10 years with an average cost of $35.00 per share. The shares were sold on June 1, 2018 at a price of $68.00 per share, on which a 1% commission was paid to a broker

Rental Activities James and Susan acquired jointly a rental property during 2018. The property was acquired on February 1, 2018 and immediately leased for a 2-year period. Below is the information relating to that property for 2018, which is shared equally between James and Susan (50% each): Address: 121 Main Street, Anytown, ON (co-owned by James and Susan equally, 50% each) Cost of property purchased: $295,000 of which $45,000 was for the land. Cost of additions made to the building in 2018: $80,000. Revenues Gross Rents $24,000

Expenses Property taxes $2,200

Insurance 1,100

Interest on mortgage 5,800

Mortgage principal 1,525

Regular maintenance & repairs 2,000 During 2018, James and Susan sold a cottage they jointly owned (50% each) located at 123 Beach Lane, AnyLake, ON. They had purchased the cottage back in 2008 at a cost of $75,000. They sold the cottage on June 15, 2018, for $200,000 cash. All transaction costs were borne by the purchaser. James and Susan do not want to designate the cottage as their principal residence because they feel their current home has a much greater accrued gain and want to preserve the principal residence tax exemption for that property instead.

how to calculate James and Susan income for an income tax return?