Alan, aged 74, has the following income for the current year in retirement: CPP Retirement benefits:...

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Alan, aged 74, has the following income for the current year in retirement: CPP Retirement benefits: $ 15,000 OAS RRIF income 7,700 TFSA Withdrawal 6,880 Registered Pension Plan benefits 60,000 2,000 Alan had a non registered portfolio that holds 100 shares of a public corporation. He disposed of the shares during this year and realized a capital gain of $18,000. Required: 1) Calculate Alan's taxable income for the current year (show your calculation) (4 marks) 2) Calculate the OAS clawback that will apply to Alan for the current year. Use the generic OAS threshold from text page 7B 3) Calculate Alan's basic federal tax payable for the current year. Only consider the basic personal tax credits as shown in the book. Ignore the provincial taxes. (Use generic tax rates and tax brackets 7B of chapter 2 (2 marks) Alan, aged 74, has the following income for the current year in retirement: CPP Retirement benefits: $ 15,000 OAS RRIF income 7,700 TFSA Withdrawal 6,880 Registered Pension Plan benefits 60,000 2,000 Alan had a non registered portfolio that holds 100 shares of a public corporation. He disposed of the shares during this year and realized a capital gain of $18,000. Required: 1) Calculate Alan's taxable income for the current year (show your calculation) (4 marks) 2) Calculate the OAS clawback that will apply to Alan for the current year. Use the generic OAS threshold from text page 7B 3) Calculate Alan's basic federal tax payable for the current year. Only consider the basic personal tax credits as shown in the book. Ignore the provincial taxes. (Use generic tax rates and tax brackets 7B of chapter 2 (2 marks)

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Answer 1 To calculate Alans taxable income for the current year we need to add up all his income sources and then subtract any eligible deductions CPP Retirement benefits 15000 OAS 7700 RRIF income 68... View the full answer