Tim Markus, Vice President of Phone Lines, earned $92,000 in salary last year. In addition to his salary, he also received low-interest loans from his employer. Tim's interest rate on these loans is 3% and he owed $160,000 throughout last year. Tim used the loan to purchase a rental property (see Schedule 1). Assume a prescribed interest rate of 8% for the entire year. Five years ago, Tim invested in some common shares of a foreign corporation. He receives $18,000 in dividends (net of $2,000 with-holding tax) annually from this corporation. Last year, he also received taxable eligible dividends of $30,000 from his investment in a Canadian public company which is resident in Canada. Tim also owns $100,000 worth of 10% bonds.
Schedule 1:
Rental revenue .............................. $26,000
Maintenance expenses .....................5,500
Utilities on rental units .....................8,200
CCA - half-year rule .....................3,200
REQUIRED
Compute Tim's income for tax purposes for last year.