Mrs. Jane Smith 2018 Taxation Year Information
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Mrs. Jane Smith 2018 Taxation Year Information
Question Description
Mrs. Jane Smith has provided you with the following information with respect to her 2018 taxation year. She has asked you to review the information and provide her with an approximation of her taxes payable for 2018 taking into consideration all the provisions available to her pursuant to the Income Tax Act.
Salary, net $160,000
Income taxes withheld $40,000
CPP 3,000
EI 1,000 44,000
$204,000
Mrs. Smith paid professional fees of $1,250 to the Professional Engineers of Ontario.
Five years ago, Mrs. Smith invested in ABC Inc., a Canadian private company which is a “small business corporation”. She invested in ABC Inc. by way of a $100,000 unsecured loan bearing interest at 5% per year, and the purchase of common shares in the amount of $50,000. Until December 2017 she received interest payments on the loan. However, for 2018 she has not received any interest payments and in fact ABC Inc. has filed for bankruptcy. No dividends were ever declared on her common share holdings.
Mrs. Smith’s earned income for 2017 for RRSP purposes is $210,000.
In November of 2018, Mrs. Smith’s employer relocated her from Toronto to Windsor to head up a new manufacturing facility. In her relocation, Mrs. Smith incurred and paid for $28,500 of eligible moving expenses. Mrs. Smith’s employment income from the new work location was $15,000 for 2018. She received a moving expense allowance of $10,000.
Mrs. Smith is recently divorced. She pays estimated alimony of $3,000 per month. The lawyers have yet to finalize the divorce.
Mrs. Smith was in a serious car accident in 2015, and as a result she requires the use of a wheelchair. In 2015 she filed the necessary form to qualify for the disability tax credit and was approved for 2015 and future years.
In 2018, Mrs. Smith sold the following assets. Also, Mrs. Smith has unclaimed capital losses on listed personal property of $1,400 arising in 2017.
Oil Painting (cost – $1,200; proceeds – $750; LPP)
Canoe (cost – $1,750; proceeds – $1,500; PUP)
Rare Coin (cost – $1000; proceeds – $1,900; LPP)
Bible produced in 1635 (cost – $2,500; proceeds – $18,500; LPP)
Antique car (cost – $10,000; proceeds – $11,000; PUP)
Antique chair (cost – $800; proceeds – $1,100; PUP)
Antique table (cost – $200; proceeds – $3,000; PUP)
Mrs. Smith received a $4 million settlement as a result of the car accident. In 2017 she invested these funds and earned interest income of $100,000 that was reported on her 2017 tax return. This did not make her happy as she paid almost $40,000 in taxes as a result. In April 2018 she (on the advice of a friend) transferred $1 million to a savings account in the name of her 16 year old daughter Jennifer and $1 million to a savings account in the name of her 19 year old daughter Kate. For 2018, the savings account in Jennifer’s name earned $23,000 and the savings account in Kate’s name earned $29,200.
In 2018, Mrs. Smith sold her residences. The following information relates to the disposition of the residences. Mrs. Smith has never used the principal residency exemption.
Toronto Home (cost – $100,000; selling price – $480,000; year of purchase – 2009)
Farm in Quebec (cost – $170,000; selling price – $268,000; year of purchase – 2011)
Florida Condo (cost – $140,000; selling price – $190,000; year of purchase – 2014)
In 2018, Mrs. Smith sold 2000 shares of Shy High Limited for $60 per share, a Canadian public corporation. The following are the details of these shares:
Nov 8, 2009 – purchased 500 shares at $21 per share
April 15, 2010 – purchased 600 shares at $19 per share
July 2, 2011 – purchased 1200 shares at $23 per share
June 30, 2013 – sold 800 shares at $29 per share
Oct 23, 2014 – received a stock dividend of 10% of shares held; stock dividend increased corporation’s paid up capital by $1 per share.
Mrs. Smith contributed $18,000 to RRSP’s for 2018.
Mrs. Smith incurred $11,000 of eligible medical expenses for 2018.
Mrs. Smith is also a landlord. She owns/owned several rental properties. The following information relates to each rental property:
Property A – Rental Income – $75,000; interest expenses $48,000; property taxes – $7,000; CCA – $8,200.
Property B – Sold January 1, 2018 for total proceeds of $700,000. Consideration of the purchase price was $100,000 cash paid on January 1, 2018 and a $600,000 note at 10%. On December 31, 2018, Mrs. Smith received $60,000 on account of interest on the note. The following information relates to the allocation of the purchase price as well as the tax attributes of the land and building.
Land – (cost – $50,000; proceeds – $300,000)
Building – (cost – $300,000; UCC – $243,000; proceeds – $400,000)
Property C – Sold January 1, 2018 for $450,000. The allocation of the purchase price was $300,000 for the building and $150,000 for the land. At December 31, 2017 the building had a cost of $400,000 and UCC of $350,000, and the land had a cost of $100,000. The building was the last remaining asset in the class.
Property D – A commercial rental property whereby the tenants carried on active business income. In February of 2018, Mrs. Smith decided to sell the property for $2,320,000 of which $2,000,000 was allocated to the building and $320,000 was allocated to the land. The building had a cost of $800,000 and a UCC of $262,000. The land had a cost of $80,000. However, on January 1, 2019 Mrs. Smith used the proceeds to purchase another commercial property. The purchased price of the new property was $2,900,000 ($2,400,000 for building; $500,000 for land).
Mrs. Smith has a rather active investment portfolio in the stock market. A summary of her investment returns are as follows:
Interest on bonds – $45,500
Capital Gains – $95,600
Mrs. Smith has unused net capital losses of $41,400
Mrs. Smith made charitable contributions in 2018 of $10,230.
The RRSP limit for 2018 is $25,400.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. 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Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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