In 2022, Elaine and Florence were married with four children: Adam age 17, Brian age 15,...

  

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In 2022, Elaine and Florence were married with four children: Adam age 17, Brian age 15, Cathy age 7, and Douglas age 4. They were living in a house in Regina, Saskatchewan. Elaine was a financial consultant and worked for the Regina office of XYZ Co., a national consulting firm. Florence was a technician working for ABC Inc., a local manufacturing company in Regina, from January to August in 2022. In March 2022, he accepted an offer from University of Western Ontario to complete a master program in physics starting from September 2022. The university awarded him a $6,000 scholarship paid in October 2022. Elaine was transferred to her employer's office in London, Ontario in August 2022. In late July 2022, the entire family spent 10 days to drive from Regina to London to search for a new house and incurred the following expenses: Meals ($348 per day) Motel ($158 per day) Gas (5,000 km) They were able to find a suitable house for the family by the end of trip. Everyone was excited and looked forward to their new lives. They sold their house in Regina with a closing date of August 31, 2022. The closing date for the new house is September 8, 2022. They hired a national moving company to help them move all their belongings to their new house in London. The family stayed in a motel in Regina for two days before they left for London on August 31, 2022. It took the family three days to arrive in London. They stayed in a motel near their new house for five days before they could move in. The related moving costs are as follows: Transportation cost of moving household effects Storage cost for holding household effects Meals ($354 per day) Motel ($160 per day) $2,436 $1,106 $980 Gas (2,500 km) Real estate commission on the sale of Regina house Legal fee on the sale of Regina house Legal fee on the purchase of London house Land transfer tax on London house Utilities connections for the new house $3,820 $500 $3,540 $1,600 $500 $8,650 $980 $628 $1,080 $278 During 2022, Elaine and Florence hired a nanny to help them look after their children when they had to go to work or study. They paid the nanny $568 per week for 45 weeks in 2022. Cathy and Douglas were sent to an overnight summer camp in July for 3 weeks, which cost them $2,700. Required: Read the information given above and answer the following questions (show all your calculations and provide the ITA reference where applicable): Question 1 (4 marks) Calculate the family's moving expenses for 2022. Question 2 (2 marks) Calculate the total amount of child care expenses paid by the family and qualify for the child care expenses deduction. Question 3 (2 marks) Calculate the family's total "Annual Child Care Expense Amount". Question 4 (2 marks) Calculate Elaine's earned income for child care expenses.; Question 5 (2 marks) Calculate the child care expenses deductible by Elaine in 2022. Question 6 (2 marks) Calculate the child care expenses deductible by Florence. Question 7 (2 marks) Calculate Elaine's earned income for RRSP contribution room calculation. Question 8 (2 marks) Calculate Elaine's RRSP contribution room for 2022. Question 9 (2 marks) Calculate the maximum amount of RRSP contribution Elaine can deduct for 2022. Occasionally, they paid Adam to look after the other children during the year. They paid $1,560 in total to Adam during 2022. On March 17, 2022, Elaine purchased $2,000 RRSP from Scotia Bank. She purchased another $9,000 RRSP from Manulife on February 10, 2023. XYZ Co. provides a defined contribution registered pension plan to its employees. Elaine's pension adjustment for 2021 and 2022 were $5,000 and $6,500 respectively. Elaine's Notice of Assessment for 2021 showed an unused RRSP contribution room of $11,800. Three years ago, Elaine started a partnership business with her friend, Amanda. She has been actively engaged in the business during her after work hours. Elaine's income for 2021 and 2022 include the following: Income Salary Taxable benefits Employment expenses Partnership business income Rental income (loss) Interest income 2021 $65,500 $4,500 $(1,320) $10,000 $(1,059) $2,200 2022 $72,000 $5,240 $(2,480) $12,000 $7,500 $1,360 Florence's income from employment, including all taxable benefits and employee deductions were $68,000 and $47,000 in 2021 and 2022 respectively. His earned income for child care expenses were $72,000 and $51,000 in 2021 and 2022. ABC Inc. does not offer any registered savings plans to technicians. Florence attended University of Western Ontario for 12 consecutive weeks full-time in 2022. In 2022, Elaine and Florence were married with four children: Adam age 17, Brian age 15, Cathy age 7, and Douglas age 4. They were living in a house in Regina, Saskatchewan. Elaine was a financial consultant and worked for the Regina office of XYZ Co., a national consulting firm. Florence was a technician working for ABC Inc., a local manufacturing company in Regina, from January to August in 2022. In March 2022, he accepted an offer from University of Western Ontario to complete a master program in physics starting from September 2022. The university awarded him a $6,000 scholarship paid in October 2022. Elaine was transferred to her employer's office in London, Ontario in August 2022. In late July 2022, the entire family spent 10 days to drive from Regina to London to search for a new house and incurred the following expenses: Meals ($348 per day) Motel ($158 per day) Gas (5,000 km) They were able to find a suitable house for the family by the end of trip. Everyone was excited and looked forward to their new lives. They sold their house in Regina with a closing date of August 31, 2022. The closing date for the new house is September 8, 2022. They hired a national moving company to help them move all their belongings to their new house in London. The family stayed in a motel in Regina for two days before they left for London on August 31, 2022. It took the family three days to arrive in London. They stayed in a motel near their new house for five days before they could move in. The related moving costs are as follows: Transportation cost of moving household effects Storage cost for holding household effects Meals ($354 per day) Motel ($160 per day) $2,436 $1,106 $980 Gas (2,500 km) Real estate commission on the sale of Regina house Legal fee on the sale of Regina house Legal fee on the purchase of London house Land transfer tax on London house Utilities connections for the new house $3,820 $500 $3,540 $1,600 $500 $8,650 $980 $628 $1,080 $278 During 2022, Elaine and Florence hired a nanny to help them look after their children when they had to go to work or study. They paid the nanny $568 per week for 45 weeks in 2022. Cathy and Douglas were sent to an overnight summer camp in July for 3 weeks, which cost them $2,700. Required: Read the information given above and answer the following questions (show all your calculations and provide the ITA reference where applicable): Question 1 (4 marks) Calculate the family's moving expenses for 2022. Question 2 (2 marks) Calculate the total amount of child care expenses paid by the family and qualify for the child care expenses deduction. Question 3 (2 marks) Calculate the family's total "Annual Child Care Expense Amount". Question 4 (2 marks) Calculate Elaine's earned income for child care expenses.; Question 5 (2 marks) Calculate the child care expenses deductible by Elaine in 2022. Question 6 (2 marks) Calculate the child care expenses deductible by Florence. Question 7 (2 marks) Calculate Elaine's earned income for RRSP contribution room calculation. Question 8 (2 marks) Calculate Elaine's RRSP contribution room for 2022. Question 9 (2 marks) Calculate the maximum amount of RRSP contribution Elaine can deduct for 2022. Occasionally, they paid Adam to look after the other children during the year. They paid $1,560 in total to Adam during 2022. On March 17, 2022, Elaine purchased $2,000 RRSP from Scotia Bank. She purchased another $9,000 RRSP from Manulife on February 10, 2023. XYZ Co. provides a defined contribution registered pension plan to its employees. Elaine's pension adjustment for 2021 and 2022 were $5,000 and $6,500 respectively. Elaine's Notice of Assessment for 2021 showed an unused RRSP contribution room of $11,800. Three years ago, Elaine started a partnership business with her friend, Amanda. She has been actively engaged in the business during her after work hours. Elaine's income for 2021 and 2022 include the following: Income Salary Taxable benefits Employment expenses Partnership business income Rental income (loss) Interest income 2021 $65,500 $4,500 $(1,320) $10,000 $(1,059) $2,200 2022 $72,000 $5,240 $(2,480) $12,000 $7,500 $1,360 Florence's income from employment, including all taxable benefits and employee deductions were $68,000 and $47,000 in 2021 and 2022 respectively. His earned income for child care expenses were $72,000 and $51,000 in 2021 and 2022. ABC Inc. does not offer any registered savings plans to technicians. Florence attended University of Western Ontario for 12 consecutive weeks full-time in 2022.

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1 To calculate the familys moving expenses for 2022 we need to sum up all the related moving costs Transportation cost of moving household effects 3820 Storage cost for holding household effects 500 M... View the full answer