Mr G is an accountant. Mr. G is 47 years old and is married to Claire...

  
 

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Mr G is an accountant. Mr. G is 47 years old and is married to Claire who is 45 years old and blind. She has Net Income For Tax Purposes in 2020 of $9,000, all of which is interest on investments she inherited from her mother. Mr. & Mrs. G have two children, a 15 year old daughter, Holly, and a 19 year old son, Mike. Both Holly and Mike live at home. Holly earned $900 during 2020 baby-sitting. Mike has a disability that is not severe enough for his doctor to sign off on the T2201 form. Mike inherited investments from his grandmother and received $15,000 in interest income from them during 2020. Mr. G's brother, Cam, lives in the basement of Mr. G's Toronto home. Cam is 50 years old and his only income for 2020 was El benefit payments totaling $3,000. Mr. G also supports his 85 year old father, Jay, who is physically infirm and lives in a retirement home. Jay had Net Income For Tax Purposes of $9,000 for 2020. His income consisted of OAS, investment income and payments from a registered pension plan of $1,000. Mr. G works for a CCPC and was paid a salary of $70,000 in 2020. He also earned a bonus of $5,000 in 2020,half of which was paid in 2020. During 2020 he received a briefcase worth $800 as an award for being the "employee of the year" and a Christmas basket from the company worth $600. All of the Company's employees received a similar basket. In 2018 CCPC offered Mr. G the opportunity to purchase stock options of the private company for $12/share. At the grant date the shares had a market value of $12. In 2020, Mr. G exercised 1000 shares when the shares had a market value of $15/share. He sold all the shares in December 2020 for $18/share. CCPC transferred Mr. G from their Toronto office to their Vancouver office in 2020. On April 1, Mr. G moved his family out of the house they had rented in Toronto for the last 10 years and into a brand new house in Vancouver that cost $800,000. Although Jay was to stay at the retirement home in Toronto, Cam moved with the family to Vancouver. Mr. G was reimbursed by his employer for all of his moving costs. As a consequence, he has no deductible moving costs. To help finance the new house, CCPC lent Mr. G $500,000 on April 1 at 1 percent interest. Mr. G would have paid 5 percent interest on a similar loan from the bank. CCPC provides Mr. G with a company car. While he was at the Toronto office, he had a Toyota Highlander that the company leased for $875 per month ($50 of which was for insurance). The company paid $1,600 for the Highlander's other operating costs from January 1 to March 31. During that period, Mr. G drove the car 9,000 kilometers of which 6,000 kilometers were employment related. On April 1, the Vancouver office gave Mr. G the keys to a Toyota Camry Hybrid that was purchased for $31,300. The company paid $4,500 for the Camry's operating costs from April 1 to December 31. During that period, Mr. G drove the car 24,000 kilometers of which 10,000 kilometers were employment related. During 2020, the following amounts were deducted from Mr. G's pay: Federal Income Tax $8,500 CPP 2,898 EI Group Life Insurance Premiums Registered Pension Plan Registered charity donations Himself Claire Holly Mike Cam Jay 856 600 The company matched the life insurance and RPP amounts. During 2020, Mr. G paid the following amounts of eligible medical expenses: 1,200 1,500 $ 650 1,940 860 1,250 480 990 Mr. G paid $900 for his 2020 professional association dues. Claire made a $500 donation to their church during 2020. 2. Taxable Income, 3. Federal Tax Owing. Assume that the prescribed interest rates for 2020 were 2 percent for the first and fourth quarter and 3 percent for the second and third quarter. Required: For the 2020 taxation year, calculate Mr. Mr G's minimum: 1. Net Income For Tax Purposes, Mr G is an accountant. Mr. G is 47 years old and is married to Claire who is 45 years old and blind. She has Net Income For Tax Purposes in 2020 of $9,000, all of which is interest on investments she inherited from her mother. Mr. & Mrs. G have two children, a 15 year old daughter, Holly, and a 19 year old son, Mike. Both Holly and Mike live at home. Holly earned $900 during 2020 baby-sitting. Mike has a disability that is not severe enough for his doctor to sign off on the T2201 form. Mike inherited investments from his grandmother and received $15,000 in interest income from them during 2020. Mr. G's brother, Cam, lives in the basement of Mr. G's Toronto home. Cam is 50 years old and his only income for 2020 was El benefit payments totaling $3,000. Mr. G also supports his 85 year old father, Jay, who is physically infirm and lives in a retirement home. Jay had Net Income For Tax Purposes of $9,000 for 2020. His income consisted of OAS, investment income and payments from a registered pension plan of $1,000. Mr. G works for a CCPC and was paid a salary of $70,000 in 2020. He also earned a bonus of $5,000 in 2020,half of which was paid in 2020. During 2020 he received a briefcase worth $800 as an award for being the "employee of the year" and a Christmas basket from the company worth $600. All of the Company's employees received a similar basket. In 2018 CCPC offered Mr. G the opportunity to purchase stock options of the private company for $12/share. At the grant date the shares had a market value of $12. In 2020, Mr. G exercised 1000 shares when the shares had a market value of $15/share. He sold all the shares in December 2020 for $18/share. CCPC transferred Mr. G from their Toronto office to their Vancouver office in 2020. On April 1, Mr. G moved his family out of the house they had rented in Toronto for the last 10 years and into a brand new house in Vancouver that cost $800,000. Although Jay was to stay at the retirement home in Toronto, Cam moved with the family to Vancouver. Mr. G was reimbursed by his employer for all of his moving costs. As a consequence, he has no deductible moving costs. To help finance the new house, CCPC lent Mr. G $500,000 on April 1 at 1 percent interest. Mr. G would have paid 5 percent interest on a similar loan from the bank. CCPC provides Mr. G with a company car. While he was at the Toronto office, he had a Toyota Highlander that the company leased for $875 per month ($50 of which was for insurance). The company paid $1,600 for the Highlander's other operating costs from January 1 to March 31. During that period, Mr. G drove the car 9,000 kilometers of which 6,000 kilometers were employment related. On April 1, the Vancouver office gave Mr. G the keys to a Toyota Camry Hybrid that was purchased for $31,300. The company paid $4,500 for the Camry's operating costs from April 1 to December 31. During that period, Mr. G drove the car 24,000 kilometers of which 10,000 kilometers were employment related. During 2020, the following amounts were deducted from Mr. G's pay: Federal Income Tax $8,500 CPP 2,898 EI Group Life Insurance Premiums Registered Pension Plan Registered charity donations Himself Claire Holly Mike Cam Jay 856 600 The company matched the life insurance and RPP amounts. During 2020, Mr. G paid the following amounts of eligible medical expenses: 1,200 1,500 $ 650 1,940 860 1,250 480 990 Mr. G paid $900 for his 2020 professional association dues. Claire made a $500 donation to their church during 2020. 2. Taxable Income, 3. Federal Tax Owing. Assume that the prescribed interest rates for 2020 were 2 percent for the first and fourth quarter and 3 percent for the second and third quarter. Required: For the 2020 taxation year, calculate Mr. Mr G's minimum: 1. Net Income For Tax Purposes,

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1 Gross Income Salary 70000 Bonus 5000 Interest Income 15000 Stock Options 3000 Total G... View the full answer