Marcy, age 40, is an employee of Markwood Accounting FIrm.  She has been lucky enough to enjoy a lucrative career with the firm. In 2020, her net employment income will be $162,000. Marcy's employer withheld income tax of $12,000, Canada Pension Plan (CPP) of $2,898 and $860 to EI from this amount. Marcy also contributed $10,000 to her RRSP since her employer does not offer a registered pension plan. Marcy realized a capital loss of $20,000 as she panicked once Covid-19 had a drastic impact on the markets but was relieved to realize a capital gain of $28,000 later in the year once markets rebounded.
Marcy also has a short term rental property in downtown Toronto, but, due to Covid, rent has been slow, so she will realize a net rental income of only $4,000 this year.  Marcy has a net capital loss carryover of $4,000 from a prior year that she would like to use if possible.
Marcy's is a widow but has been blessed with her daughter, Sarah, age 10. Sarah has nominal income from investments her father left to her. Her net income for tax purposes was 7,500. Sarah is slightly autistic so she qualifies for the Disability tax credit. Marcy worries about Sarah being an only child so has just been granted adoption to another daughter, Emily, age 8. The fees associated with adoption totaled $20,000.  
Marcy incurred $6,500 in medical expenses and contributed $1,800 to charitable organizations during this year.

Required: (show calculations - be brief)

Calculate Marcy's:
1) Net Income for Tax purposes & Taxable Income (indicate any loss carryovers that remain to carryover)
2) Taxes Payable
3) Taxes payable (after non-refundable tax credits)

Answer rating: 100% (QA)

Calaulation of Macys D Net income for tox purpase and Taxable income ... View the full answer