Sharon is single, aged 67 and has the following information regarding the 2021 tax year: Pension Income
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Question:
Sharon is single, aged 67 and has the following information regarding the 2021 tax year:
Pension Income | $50,600 |
Rental income | $2,000 |
RRSP contribution | $1,500 |
Actual amount of eligible dividends received | $1,700 |
Actual amount of foreign dividends received in Canadian dollars, not subject to foreign taxes due to tax treaty | $457 |
Income tax deducted by payer of pension income | $8,500 |
Capital loss on disposal of shares in Air Seneca Inc. | $1,500 |
She also sold her sailboat for $2,000 which cost her $900.
Required:
Calculate the following for Sharon to the extent that she wishes to pay the lowest taxes possible:
- Taxable income. Assume she has adequate RRSP contribution room. (5 marks)
- Federal tax before non-refundable tax credits (1 mark)
- Basic federal tax after non-refundable tax credits. (4 marks)
- Tax Owing or to be refunded. Ignore refundable tax credits. (2 marks)
Related Book For
Income Tax Fundamentals 2021
ISBN: 9780357141366
39th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
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