Question 1: (Part a) Assess Laura and Fred's Current Tax Situation (30%) a) Assess Laura and Fred's current tax situation, drawing from the Model for Assessing Current Client Position provided as a resource for this unit. • Use 1-3 points per factor, similar to the example in the Case Information document. • The first four factors are completed for you. FACTORS TO ASSESS Deductions (consider expenses or savings that are, or might be, deductible) Fred deducts RRSP contributions. Laura does not contribute to an RRSP. Laura's pension is non-contributory, so no deduction is available. The interest on their debt is not tax-deductible. Carry-forwards (opportunities to carry-forward amounts and/or utilize carry-overs) Not applicable. Non-refundable tax credits (use of pension credits now and in upcoming retirement) Laura will be eligible to receive the pension income tax credit when she begins receiving income from her pension. Fred will be eligible to receive the pension income tax credit when he is 65 or older and begins receiving RRIF income. Exposure to OAS recovery tax (in upcoming retirement) Laura and Fred will have little or no exposure to OAS recovery tax during retirement. © 2021 FP Canada. All rights reserved. 2 2021-12-07 v1.0 Question 1:

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