can you have answer for this assignment, it is planning finance

CAUTIONS

This is an independent case study. Any submissions with improbable similarities to another student, or to cases in FOL course materials, will be treated as an academic violation.

Read the General Income Tax and Benefit Guide (2019) plus any additional materials necessary for each item you include.

A rubric will be posted in the submission folder in advance of the deadline.

What to submit: Complete all information within this Word document. Cells will expand as required.

1.FOL SUBMISSION FOLDER: Upload your single Word document to the submission folder for grading.

2.HARD COPY B2015 DROPBOX: Cover page with my name and yours, printed copy of your Word document, plus both completed tax returns.

See FOL Announcements and the FOL Submission Folder for due date. Late penalty is 20% for each day late, with a full 20% penalty effective immediately upon missing the deadline.

BASIC CASE

You are writing a case for a 58-year-old married person who is employed and has an RPP. The spouse has no income. Their children are adults and are completely independent financially. They have no grandchildren. This person plans to retire at age 65.

The individual has the following carryforwards:

Unused RRSP contribution room

Unused TFSA contribution room

Net capital losses of other years

Non-capital losses of other years (from 10 years ago)

In addition to these basic case details, you assume all amounts and required additional information.

PART A: YOUR CASE ASSUMPTIONS

In addition to the basic case, make realistic assumptions for each of the following:

Basic case details plus 4 additional sources of income

Basic case details plus 3 additional deductions

Basic case details plus 2 tax credits. Make sure to include all applicable tax credits for basic case.

Summarize the basic case items plus your additional assumptions here. Briefly explain your logic for all amounts you have chosen.

ITEM

Sources of income

Amount

Explanation

1.

2.

3.

4.

5.

Deductions

Amount

Explanation

1.

2.

3.

4.

Tax Credits

Amount

Explanation

1.

2.

3.

4.

5.

6.

7.

Carry forward amounts

Amount

Explanation

1.Unused RRSP contribution room

2.Unused TFSA contribution room

3.Net capital losses of other years

4.Non-capital losses of other years (from 10 years ago)

PART B: COMPLETE THE TAX RETURN FOR THE INDIVIDUAL (2019 forms)

Summarize your entries here:

Complete Line Description

Line Number

Amount

Total income

Total income

Net income

Net income

Taxable income

Taxable income

Federal non-refundable tax credits

Total federal non-refundable tax credits

Federal tax on taxable income

Net federal tax

Line 42000

PART B: COMPLETE THE TAX RETURN FOR THE INDIVIDUAL- CONTINUED

Complete Line Description

Line Number

Amount

Ontario non-refundable tax credits

Total Ontario non-refundable tax credits

Ontario tax on taxable income

Ontario surtax (if applicable)

Ontario tax reduction (if applicable)

Ontario health premium

Ontario tax

Total payable

Line 43500

PART C: ASSESSMENT OF CURRENT TAX SITUATION

Based on the tax return, assess the following information:

Average tax rate: show calculation

Marginal tax rate including Ontario surtaxes: see Taxtips chart below

Amount of taxable income subject to marginal tax rate: show calculation

Amount of tax savings achieved with one of the deductions: explain and show calculation

Amount of tax savings achieved with one of the tax credits: explain and show calculation

TAXTIPS.CA

Combined Federal & Ontario Tax Brackets and Tax Rates Including Surtaxes

2019 Taxable Income

2019 Marginal Tax Rates

Fully taxable income

first $43,906

20.05%

over $43,906 up to $47,630

24.15%

over $47,630 up to $77,313

29.65%

over $77,313 up to $87,813

31.48%

over $87,813 up to $91,101

33.89%

over $91,101 up to $95,259

37.91%

over $95,259 up to $147,667

43.41%

over $147,667 up to $150,000

46.41%

over $150,000 up to $210,371

47.97%

over $210,371 up to $220,000

51.97%

over $220,000

53.53%

SOURCE: https://www.taxtips.ca/taxrates/on.htm

PART D: EXPECTED TAX SITUATION AT AGE 65 (DURING RETIREMENT)

Based on realistic assumptions, summarize the expected tax situation at age 65 retirement. Explain your logic for all amounts.

ITEM

Amount

Explanation

Sources of income

1.

2.

3.

4.

5.

Deductions

5.

6.

7.

8.

Tax Credits

5.

6.

7.

8.

9.

10.

Complete a tax return using 2019 forms to determine the following:

Expected total income

Expected total payable

Expected Average tax rate: show calculation

Expected Marginal tax rate including Ontario surtaxes: see Taxtips chart

Expected Net Income and implications, if any, for any government benefits

PART E: SUGGEST STRATEGIES TO IMPROVE TAX SITUATION

Consider timing use of carryforwards, possible us of tax deferral, and 3 potential income splitting strategies for now or during retirement. Use knowledge from course material, including KPMG Tax Planning for You and Your Family. For income splitting strategies, make sure to take attribution rules into consideration. Your explanation should demonstrate your understanding of the topic.

Topic

Specific suggestion, explanation, expected benefit

RRSP unused contribution room

TFSA unused contribution room

Net capital losses of other years

Non-capital losses of other years

Income splitting strategy 1

Income splitting strategy 2

Income splitting strategy 3

TAX and TAX PLANNING FINAL ASSIGNMENT W2020 CAUTIONS This is an independent case study. Any submissions with improbable similarities to another student, or to cases in FOL course materials, will be treated as an academic violation. Read the General Income Tax and Benefit Guide (2019) plus any additional materials necessary for each item you include. A rubric will be posted in the submission folder in advance of the deadline. What to submit: Complete all information within this Word document. Cells will expand as required. 1. FOL SUBMISSION FOLDER: Upload your single Word document to the submission folder for grading. 2. HARD COPY B2015 DROPBOX: Cover page with my name and yours, printed copy of your Word document, plus both completed tax returns. See FOL Announcements and the FOL Submission Folder for due date. Late penalty is 20% for each day late, with a full 20% penalty effective immediately upon missing the deadline. BASIC CASE You are writing a case for a 58-year-old married person who is employed and has an RPP. The spouse has no income. Their children are adults and are completely independent financially. They have no grandchildren. This person plans to retire at age 65. The individual has the following carryforwards: Unused RRSP contribution room Unused TFSA contribution room Net capital losses of other years Non-capital losses of other years (from 10 years ago) In addition to these basic case details, you assume all amounts and required additional information. 1 TAX and TAX PLANNING FINAL ASSIGNMENT W2020 PART A: YOUR CASE ASSUMPTIONS In addition to the basic case, make realistic assumptions for each of the following: Basic case details plus 4 additional sources of income Basic case details plus 3 additional deductions Basic case details plus 2 tax credits. Make sure to include all applicable tax credits for basic case. Summarize the basic case items plus your additional assumptions here. Briefly explain your logic for all amounts you have chosen. ITEM Sources of income 1. 2. 3. 4. 5. Deductions 1. 2. 3. 4. Tax Credits 1. 2. 3. 4. 5. 6. 7. Carry forward amounts 1. Unused RRSP contribution room 2. Unused TFSA contribution room 3. Net capital losses of other years 4. Non-capital losses of other years (from 10 years ago) Amount Explanation Amount Explanation Amount Explanation Amount Explanation 2 TAX and TAX PLANNING FINAL ASSIGNMENT W2020 PART B: COMPLETE THE TAX RETURN FOR THE INDIVIDUAL (2019 forms) Summarize your entries here: Complete Line Description Line Number Total income Total income Net income Net income Taxable income Taxable income Federal non-refundable tax credits Total federal non-refundable tax credits Federal tax on taxable income 3 Amount TAX and TAX PLANNING FINAL ASSIGNMENT W2020 Net federal tax PART B: COMPLETE THE TAX RETURN FOR THE INDIVIDUAL - CONTINUED Line 42000 Complete Line Description Line Number Ontario non-refundable tax credits Total Ontario non-refundable tax credits Ontario tax on taxable income Ontario surtax (if applicable) Ontario tax reduction (if applicable) Ontario health premium Ontario tax Total payable Line 43500 4 Amount TAX and TAX PLANNING FINAL ASSIGNMENT W2020 PART C: ASSESSMENT OF CURRENT TAX SITUATION Based on the tax return, assess the following information: Average tax rate: show calculation Marginal tax rate including Ontario surtaxes: see Taxtips chart below Amount of taxable income subject to marginal tax rate: show calculation Amount of tax savings achieved with one of the deductions: explain and show calculation Amount of tax savings achieved with one of the tax credits: explain and show calculation TAXTIPS.CA Combined Federal & Ontario Tax Brackets and Tax Rates Including Surtaxes 2019 Marginal Tax Rates 2019 Taxable Income Fully taxable income first $43,906 20.05% over $43,906 up to $47,630 24.15% over $47,630 up to $77,313 29.65% over $77,313 up to $87,813 31.48% over $87,813 up to $91,101 33.89% over $91,101 up to $95,259 37.91% over $95,259 up to $147,667 43.41% over $147,667 up to $150,000 46.41% over $150,000 up to $210,371 47.97% over $210,371 up to $220,000 51.97% over $220,000 53.53% 5 TAX and TAX PLANNING FINAL ASSIGNMENT W2020 SOURCE: https://www.taxtips.ca/taxrates/on.htm PART D: EXPECTED TAX SITUATION AT AGE 65 (DURING RETIREMENT) Based on realistic assumptions, summarize the expected tax situation at age 65 retirement. Explain your logic for all amounts. ITEM Amount Explanation Sources of income 1. 2. 3. 4. 5. Deductions 5. 6. 7. 8. Tax Credits 5. 6. 7. 8. 9. 10. Complete a tax return using 2019 forms to determine the following: Expected total income Expected total payable Expected Average tax rate: show calculation Expected Marginal tax rate including Ontario surtaxes: see Taxtips chart Expected Net Income and implications, if any, for any government benefits 6 TAX and TAX PLANNING FINAL ASSIGNMENT W2020 PART E: SUGGEST STRATEGIES TO IMPROVE TAX SITUATION Consider timing use of carryforwards, possible us of tax deferral, and 3 potential income splitting strategies for now or during retirement. Use knowledge from course material, including KPMG Tax Planning for You and Your Family. For income splitting strategies, make sure to take attribution rules into consideration. Your explanation should demonstrate your understanding of the topic. Topic Specific suggestion, explanation, expected benefit RRSP unused contribution room TFSA unused contribution room Net capital losses of other years Non-capital losses of other years Income splitting strategy 1 Income splitting strategy 2 Income splitting strategy 3 7