Reference no: EM132281110
At the end of 2017, Annalise had $45,800 of unused RRSP deduction room and $6,000 of undeducted RRSP contributions carry forward. Other carry forwards from 2017 include $1,000 of charitable donations and a $21,000 net capital loss carry forward. Annalise has an arrangement with her bank to transfer her RRSP contribution every month automatically. In 2017, the monthly amount was $250 but staffing in January 2018 Annalise increased it to $350 per month. Annalise also contributed $2,400 into an RESP for Asher in 2018.
Annalise owned the following non-registered investments at the beginning of the year:
– 5,000 shares Middleton Ltd, a private Canadian company - adjusted cost base $49,700
– 2,100 shares Delfino Inc., a public Canadian company - adjusted cost base $12,000
During 2018, Annalise had the following transactions:
– Purchased 780 shares of Middleton for $8.25/share on January 13
– Purchased 1,200 shares of Middleton for $10.75/share on April 30
– Sold 600 shares of Middleton to Asher on July 1 for $9 per share. Shares were valued at $14 per share on that date. Asher sold the shares for $21 per share on December 15.
– Gifted 1,100 shares of Delfino to Connor on September 15 when fair market value was $10 per share. Connor sold 500 of the shares on December 3`d for $10,000 before brokerage fees.
– Sold jewellery inherited from her grandmother for proceeds of $3,500. Her grandmother originally purchased the jewellery for $300 in 1943 and it was valued at $2,300 when Annalise received it.
Note:
o All share purchases and sales are subject to a 1.75% brokerage fee except the sales to family members.
o Middleton shares paid a $2.50 per share non-eligible dividend on November 30.
o Delfino shares paid a $4.00 per share eligible dividend on October 31.
Annalise paid the following medical bills in 2018:
| Frank |
$4,900 |
Dental work (no coverage) |
| Asher |
650 |
Prescription glasses (no coverage) |
| Connor |
1,600 |
Physical therapy (plan covers 50%) |
| Annalise |
3,800 |
Prescription medicines covers 80%) |
Annalise paid $6,400 in instalment payments for 2018.
Its bussiness tax planning assignment and it should be made accordingly tax planning