Mr. Allen Arnold is 58 years old. Allen works for a large public company, Big Corporation...

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Mr. Allen Arnold is 58 years old. Allen works for a large public company, Big Corporation as an accountant. Allen is in the process of completing her 2021 personal income tax return. Required: Allen needs your help to calculate his Taxable Income for 2021. He has compiled the following information regarding to his transactions in 2021: Salary (gross) Deductions Canada Pension Plan (CPP) Employment insurance (EI) Income tax Registered pension plan Private health and dental plan premiums Disability insurance premiums Reimbursement for use of company car Big Corporation paid the following amounts on his behalf: CPP and EI Private health and dental plan premiums Group term life insurance Disability insurance premiums Registered Pension Plan Other information: $2,876 890 10,800 3,500 250 1,200 600 $4,122 250 350 250 3,000 $103,000 1. As part of his employment duties, Allen is required to travel to different company branches throughout Alberta to perform accounting tasks. Big Corporation provides him with a 2021 Toyota Prius and paid for all of the operating expenses. He drove the vehicle a total of 31,000 km in the year with 8,000 being for personal usage. The vehicle was purchased by the employer for $47,000. It was available for his use for the entire year. The operating expenses for the year totaled $8,500. 2. The disability plan was implemented in 2019. Allen paid $200 in annual premiums in 2019 and $500 in 2020. In the current year, as a result of an unfortunate accident he sustained an injury and was unable to work. He was off for 6 weeks and collected $8,000 from the insurance company. 3. On January 1, 2021, Big Corporation implemented a stock purchase plan for all employees giving them the opportunity to purchase up to 5,000 common shares at $10 per share. At that time the shares were valued at $5.00 per share. On February 14, 2021 Allen purchased 5,000 shares when they were valued at $18 per share. He sold 2,000 shares for $30 per share on September 27, 2021. 4. Big Corporation has a policy of paying for certain counseling services for employees. Big Corporation paid $800 for Allen's counseling fees relating to his depression from his divorce. 5. Big Corporation held a contest open to all their employees to come up with a new corporate slogan. Allen's entry won and he received $500. 6. On April 1, 2021 Big Corporation gave Allen a $150,000 low interest loan to purchase a condo at 1%, the relevant prescribed rate is 2.5%. As he is required under his employment contract to set up a home office, he required more space. His expenses for the year are as follows: mortgage interest $5,800; property tax $2,400; electricity and water $1,215; natural gas $675; toilet repairs $500. Allen uses 10% of his condo as home office. 7. Allen got divorced on January 01, 2021. He has two daughters aged 18 and 7 who decided to live with him. The older daughter is a full-time university student. She attended Royal Roads University for eight months and paid her own tuition fees of $5,500. Her father gave her an $800 monthly allowance to cover her books and other expenses. In 2021, she earned $6,800 from her summer job. She will transfer any unused tuition credits to Allen. 8. Allen has a rental property. At the beginning of the year, UCC of the house was $150,000 and UCC of the appliances was $2,500. The house was rented out for $900 per month for the whole year. Expenses for the whole year were: $1,900 property tax; $1,200 utilities; $400 maintenance. Allen to claim the maximum allowable CCA to minimize his tax payable. 9. Allen had the following receipts in 2021: Bonus for 2020-received January 4, 2021 Commission Eligible dividend from Big corporation - actual amount Eligible dividend from BRX corporation - actual amount 10. Allen paid the following amounts in 2021: Legal fees - appealing 2019 CRA assessment Dues to the Accounting Association Canadian Western Bank - safety deposit box rental RRSP (contribution made February 15, 2022) Taxes and interest on unsuccessful appeal above Physiotherapy treatments Dentist for herself Contact lenses for her 7 year old daughter Orthotics for himself Braces for the 18 year old daughter 11. Allen also had the following transactions in 2021: Proceeds on the sale of a painting (ACB $950) Proceeds on the sale of a coin collection (ACB $2,000) Proceeds on the sale of BRX shares (ACB $7,260) Interest income on a two-year GIC purchased on April 1, 2019, interest received on maturity (April 1, 2021). Receipt from his mother's employer. This amount was in recognition of his mother's long service on her death. Contribution to a federal political party $5,000 26,140 2,500 1,470 900 600 75 4,500 14,200 2,000 500 250 600 1800 $2,100 1,850 6,000 10,000 12,000 1,100 12. In 2021, Allen paid $350 a month for childcare and $2,500 for hockey lessons for his 7-year old daughter. His former spouse paid him $400 a month in child support pursuant to a written agreement upon their separation on January 01, 2021. In addition, Allen's former spouse also paid $400 per month in spousal support. Allen received $6,000 in total for child support and spousal support during the year. 13. Allen's 2020 income tax return indicates the following tax balances: a) $5,000 of interest from the GIC noted in point 11 were reported. b) Allen's 2020 earned income was $64,000 and her pension adjustment amount was $4,500. She did not have any unused contribution room carry forward. c) d) e) A non-capital loss carry forward of $18,000 from 2015 was available. A net-capital loss carry forward resulting from 2016 in the amount of $20,000, and $20,000 from 2018. Charitable donations of $1,200 from 2019 were not deducted. Required: Calculate Allen's 2021: 1. Net employment income 2. Net property income 3. Net other income 4. Net Taxable capital gains 5. Total income 6. Other deductions 7. Net income 8. Taxable income Mr. Allen Arnold is 58 years old. Allen works for a large public company, Big Corporation as an accountant. Allen is in the process of completing her 2021 personal income tax return. Required: Allen needs your help to calculate his Taxable Income for 2021. He has compiled the following information regarding to his transactions in 2021: Salary (gross) Deductions Canada Pension Plan (CPP) Employment insurance (EI) Income tax Registered pension plan Private health and dental plan premiums Disability insurance premiums Reimbursement for use of company car Big Corporation paid the following amounts on his behalf: CPP and EI Private health and dental plan premiums Group term life insurance Disability insurance premiums Registered Pension Plan Other information: $2,876 890 10,800 3,500 250 1,200 600 $4,122 250 350 250 3,000 $103,000 1. As part of his employment duties, Allen is required to travel to different company branches throughout Alberta to perform accounting tasks. Big Corporation provides him with a 2021 Toyota Prius and paid for all of the operating expenses. He drove the vehicle a total of 31,000 km in the year with 8,000 being for personal usage. The vehicle was purchased by the employer for $47,000. It was available for his use for the entire year. The operating expenses for the year totaled $8,500. 2. The disability plan was implemented in 2019. Allen paid $200 in annual premiums in 2019 and $500 in 2020. In the current year, as a result of an unfortunate accident he sustained an injury and was unable to work. He was off for 6 weeks and collected $8,000 from the insurance company. 3. On January 1, 2021, Big Corporation implemented a stock purchase plan for all employees giving them the opportunity to purchase up to 5,000 common shares at $10 per share. At that time the shares were valued at $5.00 per share. On February 14, 2021 Allen purchased 5,000 shares when they were valued at $18 per share. He sold 2,000 shares for $30 per share on September 27, 2021. 4. Big Corporation has a policy of paying for certain counseling services for employees. Big Corporation paid $800 for Allen's counseling fees relating to his depression from his divorce. 5. Big Corporation held a contest open to all their employees to come up with a new corporate slogan. Allen's entry won and he received $500. 6. On April 1, 2021 Big Corporation gave Allen a $150,000 low interest loan to purchase a condo at 1%, the relevant prescribed rate is 2.5%. As he is required under his employment contract to set up a home office, he required more space. His expenses for the year are as follows: mortgage interest $5,800; property tax $2,400; electricity and water $1,215; natural gas $675; toilet repairs $500. Allen uses 10% of his condo as home office. 7. Allen got divorced on January 01, 2021. He has two daughters aged 18 and 7 who decided to live with him. The older daughter is a full-time university student. She attended Royal Roads University for eight months and paid her own tuition fees of $5,500. Her father gave her an $800 monthly allowance to cover her books and other expenses. In 2021, she earned $6,800 from her summer job. She will transfer any unused tuition credits to Allen. 8. Allen has a rental property. At the beginning of the year, UCC of the house was $150,000 and UCC of the appliances was $2,500. The house was rented out for $900 per month for the whole year. Expenses for the whole year were: $1,900 property tax; $1,200 utilities; $400 maintenance. Allen to claim the maximum allowable CCA to minimize his tax payable. 9. Allen had the following receipts in 2021: Bonus for 2020-received January 4, 2021 Commission Eligible dividend from Big corporation - actual amount Eligible dividend from BRX corporation - actual amount 10. Allen paid the following amounts in 2021: Legal fees - appealing 2019 CRA assessment Dues to the Accounting Association Canadian Western Bank - safety deposit box rental RRSP (contribution made February 15, 2022) Taxes and interest on unsuccessful appeal above Physiotherapy treatments Dentist for herself Contact lenses for her 7 year old daughter Orthotics for himself Braces for the 18 year old daughter 11. Allen also had the following transactions in 2021: Proceeds on the sale of a painting (ACB $950) Proceeds on the sale of a coin collection (ACB $2,000) Proceeds on the sale of BRX shares (ACB $7,260) Interest income on a two-year GIC purchased on April 1, 2019, interest received on maturity (April 1, 2021). Receipt from his mother's employer. This amount was in recognition of his mother's long service on her death. Contribution to a federal political party $5,000 26,140 2,500 1,470 900 600 75 4,500 14,200 2,000 500 250 600 1800 $2,100 1,850 6,000 10,000 12,000 1,100 12. In 2021, Allen paid $350 a month for childcare and $2,500 for hockey lessons for his 7-year old daughter. His former spouse paid him $400 a month in child support pursuant to a written agreement upon their separation on January 01, 2021. In addition, Allen's former spouse also paid $400 per month in spousal support. Allen received $6,000 in total for child support and spousal support during the year. 13. Allen's 2020 income tax return indicates the following tax balances: a) $5,000 of interest from the GIC noted in point 11 were reported. b) Allen's 2020 earned income was $64,000 and her pension adjustment amount was $4,500. She did not have any unused contribution room carry forward. c) d) e) A non-capital loss carry forward of $18,000 from 2015 was available. A net-capital loss carry forward resulting from 2016 in the amount of $20,000, and $20,000 from 2018. Charitable donations of $1,200 from 2019 were not deducted. Required: Calculate Allen's 2021: 1. Net employment income 2. Net property income 3. Net other income 4. Net Taxable capital gains 5. Total income 6. Other deductions 7. Net income 8. Taxable income

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