Reference no: EM132469855
Juliet Colt, age 50, has asked you for assistance In preparing her 2018 tax return. She is married to Samson, age 55, who has two children from a previous marriage, ages 22 and 8. The children live with the couple and are supported by both. Juliet is a manager with XYZ Limited, a Canadian Controlled Private Corporation (CCPC). Samson is an economist who occasionally finds contract work preparing economic forecasts at the minimum wage. Samson is certified as having a mental impairment. Samson has a disability tax credit certificate (Form T2201).
The following information has been provided.
1. Juliet's salary slips show the following:
Gross salary and taxable benefits $90,000
Less withholdings:
Income tax withheld $15,000
RPP contributions to a defined benefit plan $4,000
Canada Pension Plan Maximum Amount
Employment Insurance premium Maximum Amount
2. Juliet has the following other sources of income:
Dividends from Jacksons Ltd. (Public Co), actual amount $ 1,000
Capital gains from Motion Ltd., common shares 30,000
3. In 2015, when XYZ Limited shares were trading at $5 each, Juliet was granted options to buy 1,000 shares for $7 per share under an employee stock option arrangement. In January 2017, Juliet exercised her option and bought 1,000 shares when the market price was $10 per share. In mid-December 2018, Juliet sold these shares for $15 per share.
4. Juliet paid $4,000 for child care for her 8 year old son, Josh.
5. Samson has the following income:
Income (for tax purposes) from part-time employment $7,000
6. Sandra, the 22-year-old, attended the University of Calgary for eight months during 2018 as a full-time student. She has income for tax purposes of $6,000 and paid tuition fees of $4,000.
7. Juliet has a net capital loss balance of $1,500 arising from a disposition in 2000. She did not realize any capital gains, other than as noted above, during the period from 1993 to the present.'
8. Juliet had a non-capital loss balance of $7,500 available In 2018.
Problem 1: Calculate Juliet Colt's Division B net income for tax purposes.?