Sibbald Kay, age 30, earned $48,000 last year as a dental hygienist for Hi Care Dental Associates. During the year, Sibbald also received director's fees of $600, and incurred the following expenses:
Uniforms purchased for employment purposes................................$480
Parking expenses ($80/month) Hygienist .....................................$960
Association fees .................................................................. $280
Sibbald also earned interest income of $3,200 from holding a $50,000 cash balance in T-bills and paid $1,200 in interest expense relating to a loan for an RRSP contribution. Sibbald has not repaid this loan because she believes that saving is more important. Sibbald also has 600 shares of Battery Inc. in her self-directed RRSP. During the year, she sold 400 shares at $20 for a capital gain of $6,000. She withdrew the proceeds of disposition and purchased living room furniture.
REQUIRED
Compute Sibbald's income for tax purposes, and provide her with tax-planning opportunities for the upcoming years.