Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rita Book is a 34 year old employee with StoreyCorp. Her salary was $162,000 in 2021. During the year her employer gave her a
Rita Book is a 34 year old employee with StoreyCorp. Her salary was $162,000 in 2021. During the year her employer gave her a diamond necklace as a 15 year anniversary award worth $6,500 and a crystal vase worth $1,000 as a gift for her wedding in June. StoreyCorp deducted the required income tax, EI and CPP amounts from her paycheques during the year. Rita owns a portfolio of stocks. She sold 2,000 shares of YYZ Inc., a publicly traded company, during 2021. These shares had an adjusted cost base of $50/share and she was able to sell them for $60/share during the year. Rita is also required by her employer to work from home, where she has space that she uses exclusively to carry out various employment duties and to meet customers on a regular and continuous basis. Her work space in the home represents 20% of the total floor space in her home. Her home expenses for the year consisted of insurance of $2,600, utilities of $2,000 and repairs of $700. Rita and her spouse purchased the home in 2021 for $1,250,000. Neither of them had owned a home previously. Rita's spouse is infirm and had net income for tax purposes of $5,000 in 2021. Rita's spouse was a full-time student at George Brown College. Her tuition was $8,000 in 2021. Rita's infirm 62 year-old aunt also lives with her and she had no income during the year. Rita had a $4,000 allowable capital loss carryover from 2019 that she has not been able to use in a prior taxation year. Required: A. Calculate the amount to report on each line in the table below, including Rita's 2021 Net Income for Tax Purposes and Taxable Income. Description Line 3a Line 3b Line 3c Line 3d Net Income for Tax Purposes Division C Deductions Taxable Income B. Calculate the Federal Income Tax Liability for Rita: Description: Federal Income Tax Liability C. Calculate the following Federal Non-Refundable Tax Credits for Rita: Description: Basic Personal Credit Spousal Credit Canada Employment Credit Eligible Dependent Credit Canada Caregiver Credit Other Dependent Canada Caregiver Credit - Additional Amount First Time Home Buyers' Credit Canada Pension Plan Credit Employment Insurance Credit Transfer of Unused Credits from Spouse or Common Law Partner Amount Amount Amount
Step 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