There are four parts to this assignment - Parts A, B, C, D. Review all pages of these instructions. You must use your knowledge from the course materials to complete this assignment. Refer to the course materials, CRA forms, and CRA website to help you prepare this assignment. Use the link in the assignment folder to access CRA forms. Select Ontario, then download all relevant forms. You may need to use the search tool for some forms if they aren't in the package.

Employment information Amount Employment income $115,000.00 Employee's CPP contributions (non-refundable credit) Enhanced CPP contributions (deduction)

$3,039.30 $460.50 Employee's EI contributions $952.74 Professional dues $1,200.00 Income tax deducted $28,900.00 Investment income Interest income $225 Dividend income received from publicly traded shares of Canadian companies $750 Two capital transactions: o Sale of shares for proceeds $38,000. Commission to sell $225. Adjusted cost base (ACB) $22,200. o Sale of shares for proceeds $6,500. Commission to sell $80. Adjusted cost base (ACB) $14,900. Rental income from renting 30% of home (personal use portion is 70%). Gross rental income for 2022 was $16,000. Total home costs for 2022 included the following items: o Mortgage interest $11,000 o Utilities $3,400 o Insurance $2,200 o Property tax $6,800 o Snow removal and lawn care $1,250 o General maintenance to the overall building $6,200 o Capital improvement to the driveway $10,000 o 2021 net rental income was $1,000. Where is this information needed? Other information Birthdate: January 1, 1996. Divorced with no children. Received ANNUAL taxable support payments $85,000 from former spouse. These payments started in 2018 and will end in 2024. Client has a net capital loss from other years of $1,800 Client has a non-capital loss from other years of $100,000. This is the remaining amount from a big loss in 2018. He has been using it up at $20,000 per year to get a tax refund. He used $20,000 of this loss in 2022, leaving $100,000 for future years. Charitable donations for the year $600 Medical expenses for the year $2,950 Borrowed $25,000 to buy publicly traded shares in 2015. Interest paid in 2022 was $1,500 Use all applicable deductions and credits for this situation

PART B Enter Tax Return Results (12 MARKS) Enter the following information in FOL-Evaluations-Quizzes-Assignment W2024 1 Total income 2 Deductions before net income (line 23300) 3 Net income 4 Taxable income 5 Net federal tax 6 Balance owing or refund 7 Marginal tax rate (combined) 8 Average tax rate using taxable income as in course content 9 What is their RRSP limit for 2022? Assume their 2021 deduction limit was $55,300 and they have never contributed to RRSP. Use Chart 3 from T4040 RRSPs to guide your calculation. Assume salary and professional dues were the same in 2021 as in 2022. Other relevant information is provided in case. Use Chart 3 (provided in FOL below assignment instructions) from T4040 RRSPs to guide your calculation

10 What is their TFSA limit for 2022? Assume they have never contributed to TFSA. Note TFSA contribution eligibility rules and contribution limits carefully. Hint: when did they turn 18?

PART C Short Answer Questions (8 MARKS) Complete the following short answer questions in FOL-Evaluations-Quizzes-Assignment S2023 11 If this person received a gift of $100,000 in 2022 and wanted to contribute the maximum to their RRSP and TFSA, what advice would you give? Explain your answer. 12 Can this person deduct the cost of preparing their income tax return? Research this question in the Income Tax and Benefit Guide for 2022 and explain the answer.

13 What is the most relevant advice you can give them regarding the end of spousal support in 2024? Explain your answer.

14 Explain their marginal tax rate position. How much deduction could they take before they would have a lower marginal tax rate. How much additional income could they earn before they would have a higher marginal tax rate? Do you expect either of these situations in the next few years?

PART D Video Assignment (12 MARKS) Go to FOL-Content-Video Assignment W2024 to verbally record answers to three questions using your webcam and microphone. Simply click on the question to answer. Answer three questions related to the tax return, selected at random. You will have 30 seconds to think about each question. You will have up to one minute to answer each question verbally using your webcam and microphone. Practice timing yourself for one minute in advance of the questions so you are not surprised by how fast one minute is. You may have written notes from your assignment available for reference. You will need your calculator. Use the practice question to check your system.

Total 32 MARKS Deadline for the written and video assignment is Wednesday, April 3, 2024 11:59 PM. Late penalty for the assignment is 20% per day. The video questions will not be accepted late. This assignment is worth 15% of your final grade. Combined Federal and Ontario marginal tax rates including Ontario surtaxes 2022