Finance- Tax Exam

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Net Employment Income

Net Employment Income		AP 3-4

Gross salary			120000.0
Add Taxable Benefits:
Auto Benefit			3628.0743851229754
Stock Option Benefit			13000.0
Personal Fitness Trainer Fees			700.0
			137328.07438512298
Deductions from Employment Income:
Union Dues			-100.0
Computer Related Supplies			-550.0
Net Employment Income			136678.07438512298
NON-Income items:
Private Health Care employee	900.0
Private Health Care employer	1800.0
Cash Award	2000.0	income in 2019
Discounts on Merchandise	560.0
Take out meals	1200.0

Auto benefit

		AP 3-4
CALCULATION OF STANDBY CHARGE
- FOR PURCHASED AND LEASED VEHICLES
		PURCHASED	LEASED	(expect a combination)
Personal Km driven		6000.0
Total kilometres driven		81000.0	- 0
Business portion as a %		0.9259259259259259
ER pays 100% of operating costs		1.0
Capital Cost of vehicle including GST/HST		33600.0	- 0
Monthly Lease payment including GST/HST
EE paid ER		0.0
EE had the vehicle for 365 days (convert to months)		12.0
STANDBY CHARGE CALCULATION 6(1)(e)
Lesser of:
1) 2% X cost of vehicle X months vehicle available		8064.0	- 0
or 2/3 X monthly lease cost X months vehicle available		0.0	- 0
2) Standby Charge Reduction (A/B)
A=Personal KM divided by B=(1,667km X months vehicle available)		0.29994001199760045			6000/(1667*12)

Standby Charge Reduction Amount (calculation in 1 x % in 2)		2418.7162567486503	- 0

Total standby charge (lesser of 1 & 2)	A	2418.7162567486503	- 0
OPERATING BENEFIT 6(1)(k)
Lesser of:
1) 1/2 of standby charge if applicable		1209.3581283743251	- 0
2) $.26 x personal KM driven		1560.0	- 0
Operating Benefit - elected (lesser of 1 & 2)		1560.0	- 0
Less EE payments to ER		0.0	- 0
Total Operating Benefit	B	1560.0	- 0
Taxable benefit-automobile	A + B	3628.0743851229754	- 0

Stock options

STOCK OPTIONS	AP 3-4
		PUBLIC	PRIVATE
		CORPORATION	CORPORATION
1) Issuance Date -1,000 shares		NO TAX EFFECT	NO TAX EFFECT
FMV @ issuance @
OPTION PRICE @
2) Exercise Date			NO TAX EFFECT
FMV @ exercise
OPTION PRICE or ACB
				add to net employment income
50% Deduction permitted				deducted between NITP & TI
Net inclusion to taxable income

3) Disposal Date
POD			48000.0
Adjusted Cost			35000.0
Capital Gain (Loss)			13000.0	add to net employment income
50% Rate			0.5	deducted between NIFTP & TI
Taxable Capital Gain/(Loss)			6500.0

NIFTP

		AP 1-12 (CASE ONE)
Net Income For Tax Purposes - Template
Income Under ITA 3(a)						- 0
	Employment Income		62350.0		(cannot be negative)
	Business Income (if loss see ITA 3(d))				(cannot be negative)
	Property Income-interest, dividends,rental				(cannot be negative)
	Other Income			62350.0	(cannot be negative)
Income Under ITA 3(b)
	Taxable capital gains		48825.0
	Allowable capital losses		2715.0	46110.0	(cannot be negative)
Balance from ITA 3(a) and (b)				108460.0
	Subdivision e deductions			-4560.0
Balance under ITA 3(c )				103900.0
Deductions under ITA 3(d)
	Business Loss		-115600.0
	Rental loss		0.0	-115600.0
Net income for Tax Purposes (NITP - Div B Income)				NIL	(cannot be negative)
	NET CAPITAL LOSS CARRY FORWARD
	NON CAPITAL LOSS CARRY FORWARD			-11700.0
		AP 1-12 (CASE TWO)
Income Under ITA 3(a)
	Employment Income		45600.0
	Business Income (if loss see ITA 3(d))		27310.0	72910.0
	Property Income-interest, dividends,rental
	Other Income
Income Under ITA 3(b)
	Taxable capital gains		15810.0
	Allowable capital losses		20825.0	0.0
				72910.0
Balance from ITA 3(a) and (b)
	Subdivision e deductions			-7200.0
Balance under ITA 3(c )				65710.0
Deductions under ITA 3(d)
	Business Loss
	Rental loss			-4600.0
Net income for Tax Purposes (NITP - Div B Income)				61110.0
	NET CAPITAL LOSS CARRY FORWARD
	NON CAPITAL LOSS CARRY FORWARD			-5015.0

Sch 1 (2018) Template

Step 1 - Federal non-refundable tax credits Schedule 1
Basic personal amount								Claim $11,809				300
Age amount (if you were born in 1950 or earlier) (use federal worksheet)										(maximum $7,333)		301
Spouse or common-law partner amount (if negative, enter "0")
		$11,809 minus (_______ his or her net income from page 1 of your return)										303
Amount for an eligible dependant (attach Schedule 5) (if negative, enter "0")
				$11,809 minus (__________ his or her net income)								305
Family caregiver amount for children born under 18 years of age 352									_____ x $2,182			367
Amount for infirm dependants age 18 or older (use federal worksheet and attach Schedule 5)												306
CPP or QPP contributions:
	through employment from box 16 and box 17 on all T4 slips									(maximum $2,594)		308
	on self-employment and other earnings (attach Schedule 8)											310
Employment Insurance permiums from box 18 and box 55 on all T4 slips										(maximum $858)		312
	on self-employment and other eligible earnings (attach schedule 13)											317
Volunteer firefighters' amount												362
Search and rescue volunteers' amount												395
Canada employment amount
(if you reported employment income on line 101 or line 104, see line 363 in guide)										(maximum $1,195)		363
Public transit amount												364
Children's arts amount												370
Home Buyers' Amount												369
Home Accessibility										(maximum $10,000)
Adoption expenses												313
Pension income amount (use federal worksheet)										(maximum $2,000)		314
Caregiver amount (use federal worksheet and attach Schedule 5) (maximum $6,986)												315
Disability amount (for self) (claim $8,235 or, if you were under age 18, use federal worksheet)												316
Disablility amount transferred from a dependant (use federal worksheet)												318
Interest paid on your student loans												319
Your Tuition, education, and textbook amounts (attach Schedule 11)												323
Tuition, education, and textbook amounts transferred from a child												324
Amounts transferred from your spouse or common-law partner (attach Schedule 2)												326
Medical expenses for self, spouse or common-law partner, and your
dependent children born in 1999 or later									330			26
	Minus: $2,302 or 3% of line 236, whichever is less											27
								Subtotal (if negative, enter "0")				28
Allowable amount of medical expenses for other dependants
(do the calculation at line 331 in the guide and attach Schedule 5)									331			29
								Add lines 28 and 29				332
										Add lines 1 to 30		335
Federal non-refundable tax credit rate													15%
										Multiply line 31 by line 32		338
Donations and gifts (15% on first $200 and 29% thereafter)or (15% on first $200 and 33% thereafter)												349
(Enter amount on line 47 on next page)										Total federal non-refundable tax credits: add lines 33 and 34.		350
Step 2 - Federal Tax on Taxable Income Schedule 1
Enter your taxable income from line 260 of your return										- 0		36
						If line 37 is >		If line 37 is >		If line 37 is >
Use the amount on line 39 to determine which					If line 37 is	$46,605 but <		$93208 but <		$144,489 but <	If line 37 is >
one of the following columns you have to complete					$46,605 or less	$93,208		$144,489		$205,842	$205,842
Enter the amount from line 36										- 0	- 0	37
Base amount					- 0	46,605		93,208		144,489	205,842	38
Line 37 minus line 38 (cannot be negative)										- 0	- 0	39
Rate				X	15%	20.5%		26%		29%	33%	40
Multiply line 39 by line 40										- 0	- 0	41
Tax on base amount					NIL	6,991		16,544		29,877	47,670	42
	Add lines 41 and 42									- 0	- 0	43
					Go to Step 3	Go to Step 3		Go to Step 3		Go to Step 3	Go to Step 3
Step 3 - Net Federal Tax
Enter the amount from line 43 above								- 0	44
Federal tax on split income (from line 5 of Form T1206)							424		45
		Add lines 44 and 45					404	- 0		- 0		46
Enter the amount from line 35 from prior page (Non-refundable Tax Credit)							350		47
							423		48
Federal dividend tax credit (see line 425 in the guide)							425		49
Overseas employment tax credit (attach Form T626)							426		50
Minimum tax carryover (attach Form T691)							427		51
		Add lines 47 to 51										52
		Basic federal tax: Line 46 minus line 51 (if negative, enter "0")							429			53
Federal foreign tax credit (attach FormT2209)									405			54
Federal logging tax credit
		Federal tax: Line 53 minus line 54 (if negative, enter"0")							406			55
Total federal political contributions (attach receipts)							409		56
Federal political contribution tax credit (use federal worksheet)						(max $650)	410		57
Investment tax credit (attach Form T2038(IND))							412		58
Labour sponsored funds tax credit
	413	Net cost			Allowable credit		414		59
				Add lines 57, 58 and 59			416					60
				Line 55 minus line 60 (if negative, enter "0")					417			61
			(if you have an amount on line 45 above, see Form T1206)
Working income tax benefit (WITB) advance payments received (box 10 on the RC210 slip)									415			62
Additional tax on RESP accumulated income payments (attach Form T1172)									418			63
				Net Federal Tax: add line 61, 62 and 63					420			64
			Enter this amount on line 420 of your return
					CPP Payable
					Federal Tax Withheld

					Payable (Refund)