Question: Could someone please help me with a correct solution for questions below. There is already one solution on the platform but it seems to be

Could someone please help me with a correct solution for questions below. There is already one solution on the platform but it seems to be incorrect. Part A Complete the tax return for the client using the following information for 2021. Gross Employment Income - 65,000 CPP Deducted - 2,460 EI Deducted - 980 Income Tax Deducted - 9,875 Contribution to RPP - 2,300 Property Source Income Rental of principal residence (30%) rented, personal use (70%) Gross Rental - 14,000 Property Expenses: Mortgage interest - $7,000 Utilities - $2,800 Insurance - $1,600 Property tax - $3,800 Snow removal and lawn care - $1,550 General maintenance to the overall building - $2,200 Capital improvement to the roof - $10,000. Other information 2021 Name: Oliver Shaw Birth Date: June 12, 1989. Divorced with no children. Received spousal support payments $24,000 from former spouse. Client has a net capital loss from other years of $1,800 (carried forward from 2015) Charitable donations for the year $600 Medical expenses for the year $950 Borrowed $25,000 to buy shares in 2015. Interest paid in 2021 was $550. Use all applicable deductions and credits for this situation. Part B Answer the following questions based on the completed tax return. 1. What is the amount of total income? 2. What is the amount of taxable income? 3. What is the amount of total non-refundable tax credits? 4. What is the amount of net federal tax? 5. What is the amount of total payable? 6. How much income is taxed at the federal marginal tax rate? 7. What is the taxpayers average tax rate using taxable income? 8. List three items other than employment income that would affect RRSP contribution room. 9. How much total tax reduction would result from an RRSP contribution of $12,000 for this client? Show your calculation. 10. How much total tax reduction would result from medical expenses of $4,500 for this client? Show your calculation. Submit the completed tax return (Cantax) and this file with your answers to questions one to ten.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!