Stuart Planter is a full-time teacher, and he lives in the country with his family. Stuart farms on a part-time basis. Stuart earned $85,000 in 20x6 at his full-time teaching job. During 20x6 he also incurred farm revenues totaling $8,000 and farm expenses totaling $12,000. He has also provided the following additional information:

• Net capital losses from 20x5 totaled $10,000, and non-capital losses from 20x5 totaled $2,000.
• Stuart had the following amounts deducted from his pay during the year: CPP and EI of $3,609 and income tax of $19,000.
• Stuart contributed $5,000 to his TFSA, and $15,000 to a guaranteed investment certificate (GIC) which pays 4% annual interest. His first interest receipt for the GIC will be on June 30th of 20x7.
• Stuart received a $1,000 non-eligible dividend in 20x6.
• Stuart's wife works full-time and earns $68,000 a year.
• Stuart had extensive dental work done in 20x6. The total cost was $7,500 and Stuart did not receive any reimbursement for the cost.

A) Using tax rates and amounts applicable for 2019, calculate the following:

1. Calculate Stuart's net income for tax purposes for 20x6 in accordance with Section 3 of the Income Tax Act.
2. Calculate Stuart's taxable income for 20x6.
3. Calculate Stuart's minimum federal tax liability for 20x6. (Round all numbers to zero decimal places.)

B) Explain why any items have been omitted.

Answer rating: 100% (QA)

a 1 Employment income 85000 Noneligible dividend 1150 Restricted fa... View the full answer