Reference no: EM133088140
Question - Full calculation of Taxes Payable for an individual - Joel is a teacher who operates a lawn maintenance business during the summer months. He has provided you with the following information pertaining to 2020:
Employment income $88,000
Net loss from lawn maintenance business 12,000
Net rental income (before CCA) 2,000
Taxable capital gain on shares 14,500
Allowable capital loss on shares 18,000
Capital loss on disposition of personal car 13,000
Dividend received from Cdn public corp. 10,000
Joel made an RRSP contribution of $8,000 to his RRSP in respect of 2020. (this is within his RRSP deduction limit).
Joel paid $12,000 for daycare for his two children, aged 8 and 4. As the lower income spouse, Joel must claim this amount on his tax return. (show your calculation)
Joel also has a net capital loss carryover from a prior year of $10,000.
Joel also paid tuition for a landscaping program at nearby college with tuition of $3,000.
Required - Using the ordering in the section 3 excel template we used in class,
1) Compute Joel's minimum net income for tax purposes taxable income (and the amount of any loss carryover available as a result of the above information.
2) Calculate the taxes payable using progressive tax rates provided with non-refundable tax credits.
3) Calculate the non-refundable tax credits and final taxes payable.