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Twenty - five years ago Ronaldo, an accomplished cyclist, purchased a small custom carbon fiber wheel builder Zircles Inc. He applied their expertise in carbon
Twentyfive years ago Ronaldo, an accomplished cyclist, purchased a small custom carbon fiber wheel builder Zircles Inc. He applied their expertise in carbon fiber to other bike components and transitioned the company to an OEM supplier. He sold the operating company last year for $ million and retained the real estate which is held in a holding company, Zquares CoZC which is CCPC You are presented with the following financial information and asked to calculate his tax liability for Ronaldo wants to minimize tax payable and will utilize any deductions andor credits permitted.
Zquares Inc.
Management salary $
Dividends Paid from LRIP pool $
Capital Dividends Paid from Share Capital $
Interbike Trade Show With spouse, in Hawaii $
Gym membership $
Use of Range Rover
Market value $ Annual personal KMs
MSRP $ Annual work KMs
Investments
Nonregistered investment portfolio
Interest $
Public company dividends from Canadian stocks $
Public company dividends from American stocks in CAD $
Capital Gains $
TFSA
Interest $
Public company dividends from Canadian stocks $
Public company dividends from American stocks in CAD $
Rental property in Kelowna
Office unit rentals. ACB $ UCC $
Rental revenue $
Property manager $
Utilities $
Property tax $
Ancillary Information
Spousal support payments $
Child support payments $
WCB compensation benefit received $
Unused RRSP contribution room and deductions nil
Charitable donation by Ronaldo $
Charitable donation by Sara $
Net Capital Loss from $
In the family was rear ended in a car accident and had the following medical expenses:
Sara Physio $
Clara year old daughter Medicine and Physio $
Ronaldo Medicine and Physio $
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