Net Income For Tax Purposes - Accounting and Finance Assignment Help

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Were you being a tax professional work for A & B tax consultant corp. Victoria, new client ask you to help her to understand and prepare her tax return for 20X9
She wants to know her max RRSP deduction, and she wants to use it all to reduce her taxes. Also, she want you to calculate and explain what is her minimum Net income for
Tax Purpose, her minimum Taxable Income, and her minimum Federal tax Payables. Finally, she needs to know her tax credits and how much her tax refund or owe from (to) Canada Revenue Agency. 

1. In the last 10 years, Victoria has worked for Alberta co. publicly traded corp, and her 20X8 Net Income for Tax Purposes amounts 59,480 of this include employment income 25,920 after deduct 2,592 RPP, interest income 2,222 non-eligible dividends 2,393 Also, at the end of 20X8, ber unused deduction room was 7,776 and her Pension Adjustment for 20X8 was 5,655 RRSP Calculation (Other)2. In 20X9 she receives 77,761 gross salary of that Her employer deduct and withheld the following: 67,761 from reddeer branch and the remaining from Edmonton branch 10,000

3. During 20X9, she receives 5,184 from her disability plan, while she is in hospital Employment 700

4. Her employer provides her with a car purchased last year for 38,881 including taxes, the car was available to her for the entire year except for the month of march, she was in hospital for 31 days in Mar 20X9 (during that time employer have the keys for the car). During 20X9 the car was driven total of 51,000 km for employment

5. On April 1, 20X9 Victoria receives options from her employer to buy Victoria exercises her option on Sept 15, 20X9 when the share price was commission for CIBC Investor Edge, to handle this transaction. Employment and Capital Gains 62,000 of that Employment 1,000 Alberta co. shares at 40 On October 10, 20X9 she sold those shares for 25 on that date the company stock price was traded at 50 each and she pays 301,000 600,000 from a lottery ticket 190,000 in Reddeer

6. Years ago, Victoria plans to move to Edmonton to be close to schools for her children, in 20X1 she won immediately (in 20X1) she purchases two houses, first home for 290,000 in downtown Edmonton; and the second one for where she used to live. In 20X9 her daughter stayed in Edmonton house while she is attending University. In 20X3 her accountant advise her to designate the house in Edmonton as the principal residence, as he believes the houses will appreciate in the coming years in Edmonton. In April 20X9 she sold the second house in Red deer for she fill out form T2091 based on her accountant's advice and designated the Edmonton house as the principal residence from 20X3 and after. Capital Gains 220,000 and she moves to Edmonton,

7. In April 20X9, Victoria moves to Edmonton, here employer help her to be transferred to Edmonton branch, which located only 2km from here Edmonton home. Not Included as <40>

8. In Oct 1, 20X8, she opens a term deposit account, and she deposited 69,985 earning interest of 300 per night not including meals (she provides you with the receipts). Alberta co. policy not to reimburse any moving expenses for any employee. Other 8% and she will receive the interest at maturity on Sep 30, 20X12. Property

9. In 20X9 she receives 17,000 non eligible dividend from taxable Canadian corp.
Property

10. She owns rental property, capital cost 622,092 UCC on Jan 1, 20X9 was 497,673 she receives 34,000 in rental revenues and incurred expenses (other than CCA) 29,000 (the property in class! 4?A rate and she will claim the mas CCA) max CCA if possible Property

11. On June 20X9 she sold a vacant land for 388,807 she received down payment and the remaining balance will be paid in 5 annual instalments. The cost for the land was 288,807 She paid selling and legal expenses amount of 7,000 Cap Gains

12. April 1, 2009 Victoria sold 2,000 shares of River Lad forper share and she pays 1,000 commission for CIBC Investor Edge, to handle this transaction .The original of the shares, she had inherited 1,500 of the shares from her late father in 20X5. Her father had paid 7 per share when he purchased the shares in 2002 and the fair market value at the time of his death was11 per share. Also, In 2006 Victoria purchased an additional, 1,500 shares for 14 per share, and paid.

13. Victoria currently married to Tom and they have 3 children (Sun 3 years old, Moon 9 years old and Star 19 years old, all of the children are in good health While you discussing this tax return, Victoria told you that Tom is her second marriage and his employment income 24,000 Also, she told you based on court order she have to pay her previous spouse (spousal and child support) 12,000 during 2009 and she plan to pay the remaining amount in Jan 20X10
300 for child support, 1,500 a month includes

14. Victoria and Tom employed and paid daycare 20,490 for child care expenses 12,450 baby sitter to care of Sun and moon after school while she and Tom at work also during summer they send Sun and Moon to a summer camp for 4 4 weeks which cont 4,000 per child (51,000 a week) Other Deductions (Child Care)

15. After Christmas party, police stopped Tom and fine him with a 2,000 ticket because he was driving under the influence of alcohol. Also, the provincial court sent him to jail for 6 week Total did not have money to pay and this fine paid by Victoria, she want to deduct it if possible Other Deductions (Child care)

16. During 20X9 the family total medical expenses paid by the Toen was 12,345 None of that for Star Tax Payabal.

17. Star is full time student in the University of Alberta, she amends 8 month during 20X9 full time and her tuition fees of 8200 Tuition Credits (Tax Payable) .she has no income and all her expenses paid by her parents. Victoria provides you with form signed by Star agreeing to transfer any tuition credits at maximum to her Mom.

18. You learned that Victoria has balances carried over from prior years, she plans to deduct them if possible

• Charitable donation from 20X1 - 3200

• Non capital losses from 2005 - 3800

• Net capital losses from 200 - 6,138 Tax Payable

19. Other payments/disbursements made by Victoria during 20X9

• Swimming lessons for victoria and her children cost $1,900 - 1,900 Not eligible

• Rent while her home under renovation cost $1,500 - 1880 

• Advanced Accounting class to improve here IFRS knowledge (work related not required by her employer - 840 Not included as its related its work related Other Deductions

Required:

• Please assist Victoria in her request; by calculating:

• RRSP Maximum deductible for 2009 (as she will contribute this amount to her RRSP)

• 20X9 Division B income (Net Income for Tax Purposes)-(Must show income by Subdivision (3a, 3b...)))

• 20X9 Taxable Income

• 20X9 Federal Tax Payable (before credits)

• Federal non-refundable Tax credits

• 20X9 Net Federal Tax payable

• Write a meme 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)

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