Your neighbour, Mrs. White, has heard that you were studying personal tax. She has come to you
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Question:
Your neighbour, Mrs. White, has heard that you were studying personal tax. She has come to you with her financial information for 2020. Mrs. White is a resident of Canada for tax purposes:
| • Employment income | $40,000 |
| • Business X profit | 8,000 |
| • Business Y loss | 22,000 |
| • RRSP Withdrawal | 2,000 |
| • Interest income | 3,000 |
| • Taxable Capital gain on sale of land | 10,000 |
| • Alimony payments (spousal support) | 2,000 |
| • Capital loss on sale of securities | 24,000 |
| • Allowable business investment loss | 5,000 |
Required:
Determine Mrs. White's net income for tax purposes in accordance with Section 3 of the Income Tax Act. (Show your calculations for Paragraphs 3(a), 3(b), 3(c) and 3(d) of Income Tax Act.)
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