Required: Determine the maximum amount of 2018 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax Payable by the taxpayer in each of the following independent Cases. A calculation of Tax Payable is NOT required. 1. Mr. Holm has Net Income for Tax Purposes of $55,000, all of which is investment income. He is single and provides support for his mother. His mother is a widow who resides in Latvia and has income of $1,100 per year. 2. Mrs. Thomas has Net Income for Tax Purposes of $250,000, all of which is employment income. Her employer has withheld and remitted the required EI and CPP amounts. Mrs. Thomas was married on December 1, 2018. Her wife, a nursing student, had salary of $21,000 for the period from January 1 to November 30, 2018 and $3,200 for the month of December 2018. 3. Mr. Jackson has Net Income for Tax Purposes of $75,000, all of which is rental income. He lives with his common-law wife and their 2 children. The children are 7 and 8 years of age and have no income for the year. His wife has Net Income for Tax Purposes of $8,500. I
Required: Determine the maximum amount of 2018 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax Payable by the taxpayer in each of the following independent Cases. A calculation of Tax Payable is NOT required. 1. Mr. Holm has Net Income for Tax Purposes of $55,000, all of which is investment income. He is single and provides support for his mother. His mother is a widow who resides in Latvia and has income of $1,100 per year. 2. Mrs. Thomas has Net Income for Tax Purposes of $250,000, all of which is employment income. Her employer has withheld and remitted the required EI and CPP amounts. Mrs. Thomas was married on December 1, 2018. Her wife, a nursing student, had salary of $21,000 for the period from January 1 to November 30, 2018 and $3,200 for the month of December 2018. 3. Mr. Jackson has Net Income for Tax Purposes of $75,000, all of which is rental income. He lives with his common-law wife and their 2 children. The children are 7 and 8 years of age and have no income for the year. His wife has Net Income for Tax Purposes of $8,500. I
Chapter1: The Individual Income Tax Return
Section: Chapter Questions
Problem 13P
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1 Particulars (Mr. Holm)
Basic Personal Amount
Spouse Amount
Mother Amount
El Amount
CPP Amount
Canada Employment
Eligible Dependent Amount
Age Amount
Pension Amount
Canada Caregiver Amount
Total credit base
2 Particulars (Mrs. Thomas)
Basic Personal Amount
Spouse Amount
Mother Amount
El Amount
CPP Amount
Canada Employment
Eligible Dependent Amount
Age Amount
Pension Amount
Canada Caregiver Amount
Total credit base
3 Particulars (Mr. Jackson)
Basic Personal Amount
Spouse Amount
Mother Amount
El Amount
CPP Amount
Canada Employment
Eligible Dependent Amount
Age Amount
Pension Amount
Canada Caregiver Amount
Total credit base
Amount
11809
500
12309
Amount
11809
2593.8
1195
15597.8
Amount
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Ankit:
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Transcribed Image Text:Question 3
Required: Determine the maximum amount of 2018 personal tax credits, including transfers from a spouse or
dependant, that can be applied against federal Tax Payable by the taxpayer in each of the following independent Cases.
A calculation of Tax Payable is NOT required.
1.
2. Mrs. Thomas has Net Income for Tax Purposes of $250,000, all of which is employment income. Her employer
has withheld and remitted the required EI and CPP amounts. Mrs. Thomas was married on December 1,
2018. Her wife, a nursing student, had salary of $21,000 for the period from January 1 to November 30, 2018
and $3,200 for the month of December 2018.
3.
4.
Mr. Holm has Net Income for Tax Purposes of $55,000, all of which is investment income. He is single and
provides support for his mother. His mother is a widow who resides in Latvia and has income of $1,100 per year.
6.
Mr. Jackson has Net Income for Tax Purposes of $75,000, all of which is rental income. He lives with his
common-law wife and their 2 children. The children are 7 and 8 years of age and have no income for the year. His
wife has Net Income for Tax Purposes of $8,500.
I
Mrs. James is married and has Net Income for Tax Purposes of $110,000, none of which is employment income
or income from self-employment. Her 19-year-old dependent daughter attends university. Her husband has Net
Income for Tax Purposes of $10,500, and her daughter has Net Income for Tax Purposes of $8,500. Her daughter
does not wish to transfer her tuition, education or textbook credits.
5. Mr. Morant is 68 years old and has Net Income for Tax Purposes of $29,500, which is comprised of Old Age
Security benefits and pension income paid out of his Registered Retirement Income Fund. He is single and he has
a son who is 13 years old and is deaf. He has no income of his own.
Ms. Young is divorced and maintains a residence far from her former spouse. She has custody of the 2 children
from the marriage. They are aged 9 and 12 and in good health. They both earn $750 from paper routes. Her Net
Income for Tax Purposes is $72,000, all of which is spousal support payments.
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