Tax planning Assignment: Janice and George bought their home in Toronto, Ontario 10 years ago for $300,000. On July 1, they will move to Kelowna British Columbia, with their children Andy and Julie, so that George could take on a new job that included a $50,000 increase in his existing salary of $300,000. George's new job enabled the couple to be closer to Andy, who will be attending the University of British Columbia in the fall as a full time student. Janice and George sold the home that they had lived in for 10 years, in Toronto for $1,500,000 on Mar 30, incurring real estate commission of $25,000 and legal fees of $5,000. George's employer agreed to reimburse him $10,000 for moving expenses. They also sold their cottage in northern Ontario for $700,000, net of commissions, which they purchased for $100,000 five years ago. The proceeds from the sales were used to purchase a new home in Kelowna and to top up their emergency savings accounts. They would like to know what they should do with the excess funds. Upon leaving his employer, George sold shares held in his employer's company, the company is a Canadian Controlled Private Corporation. The shares were sold for $100,000 and had an adjusted cost base of $50,000. George would like some advice on how he might use this money to save for retirement. George and Janice have personal RRSPs valued at $90,000 and $25,000 respectively. George has $70,000 in unused RRSP contribution room and Janice has $15,000 room. At the present time George is in a 50% tax bracket and Janice is in a 35% tax bracket. At retirement they believe their tax bracket will be reduced by 10%. Janice's mom lives in Kelowna, and has been having some health issues. Prior to this year, Janice was a stay at home mother. She opened up a graphic design business as a sole proprietor last year. This year, she expects her gross revenues to be $75,000 and direct operating expenses to be $15,000. Janice is currently using one of the rooms in the house as an office and a portion of the basement and garage for storage. As a small business owner, she wants to know what she may be able to deduct from her business income and if she should incorporate her business. Janice and George would like their children to have some responsibility for funding their education. They will fund $5,000 of Andy's total tuition fees, for up to four years, from their surplus cash flows. They would like to begin saving for their daughter Julie, who is only 10. As a financial planner, you have been asked to give Janice and George some tax and financial advice. Required: What tax issues may Janice and George face? What options do they have? What information would you need from them to help provide advice on these issues? What advice would you give to this couple based on the information provided?

It can be in point form