It is March of 2021 and you are about to prepare the 2020 tax return for Kelsey Lee. Your meeting with Kelsey has provided the following information:

Kelsey is thirty years old, divorced, and has an eight-year-old child from a former marriage. Child support payments from Kelsey are $500 a month.  
 -Kelsey lives in Moncton, and is a salesperson for Triton Inc.. The earnings from the job include a base salary of $6,000 per month plus a commission of 1% on the sales Kelsey makes in the month, which were $50,000 every month in 2020.  
 -Kelsey moved to Moncton from Halifax on December 1, 2019 due to a promotion with Triton. Kelsey's tax deductible moving expenses totaled $9,500, and there was no reimbursement from Triton. $4,500 of this expense was accurately claimed on the 2019 tax return. Kelsey took out a $120,000 mortgage to purchase a new home in Moncton. The total interest payments were $8,400 in 2020.
 -Kelsey's personal vehicle is used to perform the work duties, and Kelsey pays for the expenses with no reimbursement from Triton. However, an allowance of $400 is received each month which is treated as unreasonable for tax purposes. Kelsey purchased a new car in 2019 which is used seventy-five percent of the time for business purposes. The undepreciated capital cost of the vehicle at the beginning of 2020 was $28,000. Total costs to operate the vehicle are $800 per month. Interest expense on the car loan is $200 per month.
 -Kelsey spends $300 per month on fashionable clothing for work, and $500 per year on a new cell phone. The cell phone bill is $80 per month, of which seventy-five percent is for employment use.
 -Kelsey takes files home from the office at the end of the day and reviews the sales calls in a home office. The files are then returned to the office at Triton in the morning prior to leaving for the day to make sales calls. Kelsey's monthly total expense for the home insurance, property taxes, maintenance, and utilities is $1,000. The home office occupies ten percent of the square footage in the home.  
 -Kelsey maximizes RRSP contributions each year. The 2019 Notice of Assessment showed RRSP room of $12,000. Earned income was $42,000 in 2019 which consisted of $6,000 in commissions. Triton does not have a registered pension plan. CPP for enhanced contribution is $166.Required:
 
 -Calculate Kelsey's minimum net income for tax purposes for 2020. Use the aggregating formula from Section 3 of the Income Tax Act to show your answer.
 -Indicate why any items have been omitted from your calculations.

Answer rating: 100% (QA)

1 The MNI of Kelsey is 47854 for 2020 tax purposes 2 The reasons for items omitted from the calculat... View the full answer