Tom Jonas recently retired as a hockey player with the Toronto Maple Leafs. In the current year, he received his salary of $150,000 from the team and is eligible for a (National Hockey League) NHL pension in 15 years. He and his wife Mary have settled in Kingston, ontario where he runs a small sporting goods store as a proprietorship. He has provided you with the following information:

Net income from the store for the fiscal year ended Dec. 31 was $39,000. Next year he is hoping to double that.Mary works in the store about 35 hours a week and is paid $8 per hour. This is already included as an expense in determining the $39,000.

Tom's other current year receipts are:

oEndorsements of a brand of hockey equipment: $30,000

oEligible dividends from Canadian public corporations, $7200

oDividends from foreign corporations (net of $750 withholding tax) $6,750

oInterest from Canadian bank, $4000

Tom also had the following expenses: cycling trip to Algonquin Provincial Park with family, $2,200; interest on bank loan to acquire public company shares, $4,050

In May of the previous year, Tom purchased a five year, $10,000 GIC. The interest rate was 6% . None of the interest is receivable until maturity in 5 years.

Tom has asked you to calculate his income for tax purposes. In addition , he wants you to provide any basic tax planning advice that might be appropriate.