The Calculation of the Federal Non-Refundable Tax Credit Assignment

The Calculation of the Federal Non-Refundable Tax Credit - Assignment Example She was originally married but later on divorced due to domestic violence. She is a Canadian citizen who lives in Ontario province, Toronto city 2 vines Avenue. She is blessed with four children born in 1990, 1993, 1997 and 2001 respectively. As per now, the client does not pay the family caregiving amount. She earns a basic employment income of $100000 with the following deductions: $3000 for elected split-pension, $4000 for the annual union for professionals as he is in a union of accountants union and $8700 for her children expenses. She has credits such as $4468 for two children whom he doesn’t claim for the family caregiver, $8548 for other two children who claim for family caregiver and $5120 for CPP contribution through payment from box 16 and box 17 of all T4 slips, $891.12 for employment premiums. He, however, pays $1117 for being a Canadian employer, $2500 for public transit, $3000 for children fitness, $1500 for children’s arts, $3500 for home buyer’s, $5200 for medical expenses for herself and her children. The client has got two more types of income which is interest on bond and dividends. In the case study, the client earns a salary of $100000 in 2012 and was not a member of DPSP and RPP so he is entitled to contribute (18%*100000) = $18000 as contribution limit but he contributed $1500 to a spousal RRSP in 2013. His earned income is sufficient for maximum $24270 as the deduction in the year 2013. He will contribute and deduct up to $16500 in 2013 (18000+ {18000-1500}) the RRSP contribution is recorded in line 129 Capital gains: in April 2013, the client owned 500MBF (1000 board) of wooden boards that lasted for more than a year. It had a depletion of $60 per MBF. She is a calendar year taxpayer. On January 1, 2013, the boards had a fair market value of $45 per MBF. She sold all of them in April. On her 2013 tax return, she elected to treat the cutting of timber as the exchange. We report the difference between client’s fair market value and her adjusted basis for depletion as a capital gain.  Ã‚