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Assignment #1 - Chapter Review Problem 71. Read the information below and follow the instructions. Taxpayer...

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Assignment #1 - Chapter Review Problem 71. Read the information below and follow the instructions. Taxpayer...

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Asked by meghashah08

Assignment #1 - Chapter Review Problem 71.

Read the information below and follow the instructions.

Taxpayer Information:

Taxpayer #1
Name:	Keith Dox
SIN:	805 127 115
DOB:	August 13, 1989
Marital status:	Married
Address:	18 Page Place, Your City, YP, X0X 0X0 Note: use a postal code applicable to your province (YP)
Phone number:	(XXX) 369-7851 Note: use an area code applicable to your province (..5@rogers.ca
Taxpayer #2
Name:	Katie Dox
SIN:	805 127 123
DOB:	March 3, 1990

Keith Dox lives with his wife, Katie. Katie's net and taxable income is $34,000. Her income consists of one T4 and $4,500 in tips. She has already filed her own return.

Keith and Katie sold their original home located at 216 Bayfield Street, YourCity, YP, X7X 7X7, for $400,000 on March 31, 2023, before moving into their new home a few blocks away at their current address. They had purchased the house on Bayfield Street together in 2018; 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 $20.30 interest he received last year from Tangerine. Keith receives income each year on a T3slip from a trust that was set up by his father. Keith also has a Royal Bank savings account to which he contributes 25% of the funds, and Katie contributes the remaining 75%.

In 2018, 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 1.2535. He neither contributed nor withdrew any amounts from this account. According to the 2023 bank statements, the account had a balance of US$124,000 on January 1^stand US$125,240 on December31^st. The bank statements also show that the only credits on this account are for monthly interest payments. For 2023, the annual average exchange rate was 1.3497. Keith is not a US Citizen. He does not need to file a US return.

In late 2021, Keith bought 10 shares of Metro Inc. Keith received four dividend payments in 2023, each payment being $2.75, for a total of $11.00. He did not receive a slip for this income, and Metro Inc. is a Canadian corporation that issues eligible dividends. Keith still has these shares and does not plan on selling them in the near future. He has a $25 receipt for management fees anda $75 receipt for investment counsel fees.

Keith always donates $300 each summer to the Terry Fox Foundation, which is a charitable organization registered with the Canada Revenue Agency. Keith wants to claim his donation each year versus saving for a future year. This year, Keith made a $200 political contribution to the federal Liberal Party of Canada, for which he has an official receipt.

Keith's T4 and other information slips are reproduced below. Last year Keith received a tax refund of $1,000, including $8.50 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.

Keith lives within a Census Metropolitan Area in your province. (YP)

Box 22:

BC: 6,566; AB: 7,254; SK: 7,762; MB: 8,760; ON: 7,039; NB: 8,080; NS: 8,906; PE: 8,721; NL: 8,363; YT: 6,607; NT: 6,549; NU: 5,876

Instructions:

1. Manually complete Keith's tax return including all required schedules and forms, using the fillable forms package.

2. As part of this assignment, also complete Step 5 Part A for Katie's tax return (for her taxable income of $34,000).