Were you being a tax professional work for A \& E 4,352 She wants to know her max RRSP betaction, and she wants to use at all to reduce her laxes. Alsis, she want yeu w calculate amd explain what is her nuimimum Net income for Tax Purpose. her aninisum Taxable Income, and her muimum Federal tax Payables. Finally, she sects to know her tax credits and hoon much her tax refund ar owe fiom (to) Canada Revenue Agency. She provides you with the following information- Pleasc DO NOT add or change numbers. DO NOT change formatting or delete auy line below this Red Ribbou 1 2 In 209 she receives 75,785 gross salary of that 65,785 from reddeer brasch and the semaining from Edmouton brasch Her employer deduct and withbeld the following: Federal Income Tax Canada Pensisa l'lan conatritutions Employment Insuraoce Premiums Regisitered Pensivn Plan Cintritations Donation to United Way charity Irrufessiunal Dues Contribution to Disability Pension Plan The plan was stared 10 years age, and the annaal premiums neser changed is1,800 a year). (at Dee 31,208, her accumulated premiuas in the plan were 3 During 21) 9, she receives 5,052 from her disability plan, while sho is in hospital 4 Her employer prosides her with a car purchased last year for 37,893 including taxes, the car was asailable to her for do catire year except for the moath of mach, she wus in hwspital for 31 days in Mar 209 (during that time employer have the keys for the cari. 5 On April 1, 20X Victoria teceives options from ber employer to bay Victoria exereses her option on Sept 15, 20Xy when the share prioe was 1,001 Alherta co. shares al 25 on that late the cumpany stuck price was tratel at commission fior CIBC: Invester lidge, ta hanile this trunsaticin. 6. Years ago. Victoria plans to move to Edmonton to be close to schools for her children, in 20X/ she won 600,000 from a lottery ticket where she used to live. In 20X9 her doughter stayed in Edmonton house while she is attending Universiry. In 20X3 her aovountant advise her to designate the house in Edmonton as the principal residence, She drove 155km in bere Van, with bere 3 childen and husband, and sbe pays the moving compeny 6,500 andpays300peraghtbotincludingmeals(sheprovidesyouwiththeroceipts).Albertaco.policynottoreimburseanymosingexpensesforanyemployee. 8 Ia Oct 1,208, she opeas a tern deposit account, and she depositod carcing intcrest of and she will receiva the inturest at maturity on S 30,2012, 9 In 209 she reccives non eligible dividend from taxable Canadian corp. I0 She crons rental pooperty, capital UCC on Jan 1, 20X9 was she reseives in rental revenues and iocurred expenses (other than CCA) (the property in class I CCA rate and she will clain the inax CCA) max CCA if prossible 11 On June 209 she sold a sacant land for she received down payacnt and the renaining balance will be gaid in 5 annual instalasents. The cost for the land was She paid selling and leggal expenses amount af 12 April 1, 20Xy Vistaria sold shares of River l.tcl. for per share and she pays cormmission for CIISC: Investor Fidge, to handle this transaction The original of the shares; she had inberited ard the fair market valiee at the time of has death wa of the shares from ber late father in 20X5. Her father had paid per share. A1sw, In 206 Victoria purchased an asiditsonal ver share when he purchased the shares in 202. 13 Victicia currently married to Tom and they have 3 children foun 3 years old. Mosn 9 years old and Stat 19 years old. all of the children are an good healih While vou discussing this tax nerum. Victoria told you that Tom is ber scoond marriage and his enployment inoome Also, she told you besed on court order she have to pay her previous spouse ispousal and child support) a ascath includes for child suppott, she provides you with documentation coutirmed het gayments of during 209 and she plan to pay the remaining amount in Jan 2010, 14 Vietocia and Toan enployed and paid daycare ales during summer they seni Sun ani Monn to a sammer camp fir 4 weeks which cost babs sitter to care of Sun atd moea after school while she and Toan at mork. 15 After S'hristras party, police stapped Tixn and fine him with a Tom did not hase money to poy and this fine paid by Victoria, she want to deduct it if possible 16 During 209 the family totnl medieal expenses paid by the Tom was None of that for Star 17 Star is full time student in the University of Alberta; she attends 8 month during 209 full time and her tuition fees of she has no income and al] het expenses paid by her parents. Victoria provides you with form signed by Star agrocing to transfer any tuition crodits at maxianan to lief Mom. 18 You learned that Victoria has balances carricd oser fron prior years, she plans to doduct then if pessible Charitahledomationfium2XNoacapitallossesfrom205Netcapitallossesfrom201l3,20103,8006,138 19 Other pay ments / disbursernents made by Victoria Luring 20X9: - Swimming lessons for vicroriz and her children cost SI900 - Real while ber hwane under reneration cosl \$1, 00 .- Advanced Accounting class to improve here IFRS knowlethge (work related not required hy her employer) - 20X9 Division B income (Net Income for Tax Purposes) -(Must show income by Sub division (3a, 3b...)) - 20X9 Taxable Income - 209 Federal Tax Payable (before credits) - Federal non-refundable Tax credits - 209 Net Federal Tax payable - Write a memo to Victoria explaining to her how you prepared her tax return. By explaining to her why some items can't be deducted, and why there is addition to income of amounts she never received (Benefits). (one to two pages maximum) Notes: 2- Use the current year rates for the 20X9, credits...etc. It can be found on your ITA, Meskanas or search CRA website 3- Reference your answers to income tax act sections, subsection, paragraph.... etc. 10% of the marks will be allocated to references from ITA. Were you being a tax professional work for A \& E 4,352 She wants to know her max RRSP betaction, and she wants to use at all to reduce her laxes. Alsis, she want yeu w calculate amd explain what is her nuimimum Net income for Tax Purpose. her aninisum Taxable Income, and her muimum Federal tax Payables. Finally, she sects to know her tax credits and hoon much her tax refund ar owe fiom (to) Canada Revenue Agency. She provides you with the following information- Pleasc DO NOT add or change numbers. DO NOT change formatting or delete auy line below this Red Ribbou 1 2 In 209 she receives 75,785 gross salary of that 65,785 from reddeer brasch and the semaining from Edmouton brasch Her employer deduct and withbeld the following: Federal Income Tax Canada Pensisa l'lan conatritutions Employment Insuraoce Premiums Regisitered Pensivn Plan Cintritations Donation to United Way charity Irrufessiunal Dues Contribution to Disability Pension Plan The plan was stared 10 years age, and the annaal premiums neser changed is1,800 a year). (at Dee 31,208, her accumulated premiuas in the plan were 3 During 21) 9, she receives 5,052 from her disability plan, while sho is in hospital 4 Her employer prosides her with a car purchased last year for 37,893 including taxes, the car was asailable to her for do catire year except for the moath of mach, she wus in hwspital for 31 days in Mar 209 (during that time employer have the keys for the cari. 5 On April 1, 20X Victoria teceives options from ber employer to bay Victoria exereses her option on Sept 15, 20Xy when the share prioe was 1,001 Alherta co. shares al 25 on that late the cumpany stuck price was tratel at commission fior CIBC: Invester lidge, ta hanile this trunsaticin. 6. Years ago. Victoria plans to move to Edmonton to be close to schools for her children, in 20X/ she won 600,000 from a lottery ticket where she used to live. In 20X9 her doughter stayed in Edmonton house while she is attending Universiry. In 20X3 her aovountant advise her to designate the house in Edmonton as the principal residence, She drove 155km in bere Van, with bere 3 childen and husband, and sbe pays the moving compeny 6,500 andpays300peraghtbotincludingmeals(sheprovidesyouwiththeroceipts).Albertaco.policynottoreimburseanymosingexpensesforanyemployee. 8 Ia Oct 1,208, she opeas a tern deposit account, and she depositod carcing intcrest of and she will receiva the inturest at maturity on S 30,2012, 9 In 209 she reccives non eligible dividend from taxable Canadian corp. I0 She crons rental pooperty, capital UCC on Jan 1, 20X9 was she reseives in rental revenues and iocurred expenses (other than CCA) (the property in class I CCA rate and she will clain the inax CCA) max CCA if prossible 11 On June 209 she sold a sacant land for she received down payacnt and the renaining balance will be gaid in 5 annual instalasents. The cost for the land was She paid selling and leggal expenses amount af 12 April 1, 20Xy Vistaria sold shares of River l.tcl. for per share and she pays cormmission for CIISC: Investor Fidge, to handle this transaction The original of the shares; she had inberited ard the fair market valiee at the time of has death wa of the shares from ber late father in 20X5. Her father had paid per share. A1sw, In 206 Victoria purchased an asiditsonal ver share when he purchased the shares in 202. 13 Victicia currently married to Tom and they have 3 children foun 3 years old. Mosn 9 years old and Stat 19 years old. all of the children are an good healih While vou discussing this tax nerum. Victoria told you that Tom is ber scoond marriage and his enployment inoome Also, she told you besed on court order she have to pay her previous spouse ispousal and child support) a ascath includes for child suppott, she provides you with documentation coutirmed het gayments of during 209 and she plan to pay the remaining amount in Jan 2010, 14 Vietocia and Toan enployed and paid daycare ales during summer they seni Sun ani Monn to a sammer camp fir 4 weeks which cost babs sitter to care of Sun atd moea after school while she and Toan at mork. 15 After S'hristras party, police stapped Tixn and fine him with a Tom did not hase money to poy and this fine paid by Victoria, she want to deduct it if possible 16 During 209 the family totnl medieal expenses paid by the Tom was None of that for Star 17 Star is full time student in the University of Alberta; she attends 8 month during 209 full time and her tuition fees of she has no income and al] het expenses paid by her parents. Victoria provides you with form signed by Star agrocing to transfer any tuition crodits at maxianan to lief Mom. 18 You learned that Victoria has balances carricd oser fron prior years, she plans to doduct then if pessible Charitahledomationfium2XNoacapitallossesfrom205Netcapitallossesfrom201l3,20103,8006,138 19 Other pay ments / disbursernents made by Victoria Luring 20X9: - Swimming lessons for vicroriz and her children cost SI900 - Real while ber hwane under reneration cosl \$1, 00 .- Advanced Accounting class to improve here IFRS knowlethge (work related not required hy her employer) - 20X9 Division B income (Net Income for Tax Purposes) -(Must show income by Sub division (3a, 3b...)) - 20X9 Taxable Income - 209 Federal Tax Payable (before credits) - Federal non-refundable Tax credits - 209 Net Federal Tax payable - Write a memo to Victoria explaining to her how you prepared her tax return. By explaining to her why some items can't be deducted, and why there is addition to income of amounts she never received (Benefits). (one to two pages maximum) Notes: 2- Use the current year rates for the 20X9, credits...etc. It can be found on your ITA, Meskanas or search CRA website 3- Reference your answers to income tax act sections, subsection, paragraph.... etc. 10% of the marks will be allocated to references from ITA