1. The government does not intend to tax social assistance payments or workers compensation payments. Given this, why are these amounts included in Net Income for Tax Purposes? [1 mark]

2. What are the tax advantages and other benefits associated with making contributions to a

Registered Education Savings Plan? [4 marks]

3. Tax advisors generally recommend making RRSP contributions as early in the year as possible.

What is the basis for these recommendations? [2 marks]

4. Your friend Brad just informed you of his plan to purchase a rental property in the upcoming year. The average cost of a rental property is $150,000 and he heard that he can claim CCA on the rental property. His plan is to sell the rental property in a couple of years and purchase a new rental property in that same year to avoid adverse tax consequences. What is your advice to Brad? [2 marks]