Chapter Review Problem $7\mathrm{.}1$ Assignment # $1$

$-$CA$-$Fundamentals of Income TaxTaxpayers InformationThree days each week, a large landscaping crew efficiently

swarms over The Townhouse Terrace in Your City. The grass is cut,

the trees are pruned, the flower beds are weeded, and the sidewalks

are swept, leaving the property immaculate. One resident says the

numerous capable landscapers remind him of ants.Keith Dox is one of these $$ants$.$ Keith lives with his wife,

Katie. Katie is an ambitious young tax attorney who does not

particularly like to spend time outdoors, even with Keith. Katie$$s

net income on Line $23600$ is $$87,320.$ She has already filed her own

return.Keith and Katie sold their original home located at $216$ Bayfield

Street, Your City, YP$,$ L$3$A $6$T$3,$ for $$400,000$ on March $31,2019,$

before moving into their new home a few blocks away at their

current address. They had purchased the house on Bayfield Street

together in $2014$; they lived exclusively at that address and had

not owned any other residential property during the time they owned

that home. Neither Keith nor Katie changed employment last year;

they moved simply because they liked the new house.Keith has a Tangerine investment account which pays him

interest. He never received an information slip but was able to

total up the $$20\mathrm{.}30$ interest he received last year from Tangerine.

Keith also has a Royal Bank savings account to which he contributes

$25\%$ of the funds and Katie contributes the remaining $75\%.$ The $$875$

shown in Box $17$ of the T$5$ slip issued by Cut You! represents

royalties paid to Keith for the use of the pruning shear blade he

invented.In $2017,$ Keith inherited a bank account in the US with a balance

of US$$120,000$ from his uncle. At that time, the exchange rate was

$1\mathrm{.}30503.$ He neither contributed nor withdrew any amounts from this

account. According to bank statements, the account had a balance of

US$$124,000$ on January $1$st$$and US$$125,240$ on

December $31$st$.$ The bank statements also show that the

only credits on this account are for monthly interest payments. For

$2019$ the annual average exchange rate was $$1\mathrm{.}3269.$ Keith is not a

US Citizen. He does not need to file a US return.Keith has a $$75$ receipt for investment counsel fees. Though

Katie doesn$$t know it yet, in November Keith bought a piece of land

in a nearby rural area where he hopes to build a small cabin.Keith$$s T$4$ and other information slips are reproduced below.

Last year Keith received a tax refund of $$1,000,$ including $$8\mathrm{.}50$

interest on the refund. He is hoping for a refund again this

year.Keith is a Canadian citizen and he wants to answer $$Yes$$ to the

Elections Canada question. He has signed up for$$My

Account$$and would like to register for online mail$$Box $22$:BC: $6,893$; AB: $7,515$; SK: $8,041$; MB: $9,056$; ON: $7,335$; NB:

$8,623$;

NS: $9,211$; PE: $9,122$; NL: $8,707$; YT: $7,003$; NT: $6,118$; NU:

$5,344$;Use the fillable forms package available

for download from uLearn $>$ Connect $>$ All communities $>$ Tax

Academy $2020>$ Topics $>$ English $>$ Fundamentals of Income

Tax $($Level $1)>$ Fillable Forms

Packages$$Tax