Question
Your client, Dr. Miranda Steels, 66 years old, has brought you the following information for the preparation of her 2021 income tax return:- Gross Salary$120,000
Your client, Dr. Miranda Steels, 66 years old, has brought you the following information for the preparation of her 2021 income tax return:- Gross Salary………………………………………………………………………$120,000 Canada Pension Plan Contributions………………………….............(2,166) Employment Insurance Contributions…………………………........... ( 800) Income taxes withheld…………………………………………….......……(15,000) Adiitiona Information i. Pension income received from a registered pension plan ………….….$42,000 ii. Rental Property loss excluding capital cost allowance………………..…… $10,000 iii. Dividends from Canadian public corporations ……………………………...……$9,000 iv. Interest from other investments………………………………………………………....$6,000 v. Dr. Miranda Steels separated from her husband in January of 2021. The couple has one daughter Gillian, eight years old who is disabled. In the divorce settlement, the Court ruled that the family home should be sold and any gains divided equally. In March of 2021, the home was sold for $1,200,000. The home was bought in 2017 for $950,000. Real estate commission and other expenses related to the sale was $15,000. vi. Mrs. Steels made $10,000 contribution to her RRSP in 2021. Her earned income in 2020 was $110,000. She did not contribute to a Registered Pension Plan in 2020 but had unused deduction room from previous years of 20,000. vii. In 2021, she made $2,000 contributions to the Salvation Army and $800 contribution to Federal Political Parties. viii. She incurred the following medical expenses:- Dental bills for her Gillian…………………………….$10,000 Eyeglasses for herself……………………………………$1,000 Premiums paid for private health plan…………..$ 800 Physiotherapy for herself……………………………….$ 720
ix. She had the following loss carryovers from previous years:- Net Capital loss…………………….$5,000 Non Capital loss………………….$12,000
Required:- Compute Mrs Steels 2021, Federal Income Taxes Payable.
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