Sharon is single, aged 69 and has the following information regarding the 2021 tax year: Actual amount
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Question:
Sharon is single, aged 69 and has the following information regarding the 2021 tax year:
Actual amount of foreign dividends received in Canadian dollars, not subject to foreign taxes due to tax treaty | $547 |
Income tax deducted by payer of pension income | $5,800 |
Capital loss on disposal of shares in Air Seneca Inc. | $1,800 |
Pension Income | $56,000 |
Rental income | $3,200 |
RRSP contribution | $2,125 |
Actual amount of eligible dividends received | $700 |
She also sold her sailboat for $1,900 which cost her $750.
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 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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