Combination Questions – 20 total points
1) Employment income cash basis + basic credits - 2 points
In 2023 James earned a $40,000 salary and a $5,000 bonus which wasn’t paid until February 2024. In
20124 he earned a $50,000 salary and a $3,000 bonus which wasn’t paid until February 2025. James is
married to Silvia. Silvia is a professional artist but has no income in 2023 or 2024.
Calculate James’ net taxes owing for 2024.
2) Taxable Benefits + Credits – 2 points
Jillian earns $20,000 in salary in 2024, but her employer makes up for the short salary with lots of perks.
She’s worked there for 2 years so far. Her employer pays $3,000 on her behalf for medical insurance,
paid $600 for her welder’s certification (her employer is a construction company), and also gives her a
piece of jewelry every year in December worth $1,000.
Jillian is single, without children, and made $2,000 in donations in 2024.
Calculate Jillians’ net taxes owing for 2024.
3) Dividend Question + Misc Income + Administration – 2 points
Jeremy earns $70,000 in eligible dividends on his shares of XYC Co. in 2024. He also received $5,000 in
interest income on bonds he owned during the year and won $1,200 at the casino when he and his
friends went for a bachelor party.
Calculate his gross taxes owing before credits.
When will his personal tax return need to be filed by?
4) Misc Income & Deductions – 2 points
Roy and Ronda are both 72 and are pseudo retired but still like to stay active. Roy’s income in 2024
includes $60,000 in RRSP withdrawals and $25,000 in consulting income. Ronda isn’t currently earning
any form of income. Roy was offered a lucrative consulting position at a newspaper in Ontario so the
family moved from PEI to Ontario so he could take the position (Ontario is where he earned the
$25,000). The couple kept no receipts from their move but estimate they drove approximately 1,700
kilometres and the drive took 3 days.
The couple would like to take advantage of any opportunity to minimize their tax bill.
What is the lowest possible taxable income that Roy can report?
5) Business Income + CCA – 2 points
Randall purchased a $20,000 piece of office furniture during 2024. The balance in his UCC pool for
furniture at the end of 2023 year was $30,000 and is amortized at the declining balance rate of 20%.
Randall estimates that his net business income for accounting is $150,000, which includes $15,000 in
accounting amortization of office furniture.
Calculate Randall’s adjusted taxable income from his business.
6) Sale of assets + Business Income – 2 points
Samantha purchased a conveyor belt for $80,000 and claimed CCA over time. Her opening UCC balance
for the current year was $60,000 and she sold the conveyor belt for $70,000. There are several other
pieces of equipment in the M&P Equipment pool.
Samantha’s accounting income from her manufacturing business is $300,000, which includes a $30,000
gain on the sale of the conveyor belt.
Calculate Samantha’s adjusted taxable income from her business.
7) Interest Deductibility + business income – 2 pts
Clarence has business income in 2024 of $40,000. His interest deductions for the year included $500
paid to CRA for overdue accounts, $5,000 paid to the bank for a loan he withdrew to invest in preferred
shares with a 3% annual dividend rate, and $4,000 paid to the bank for a loan he withdrew to pay
dividends of $20,000 to himself. In 2024, the company had a negative retained earnings balance
because the last few years had been difficult ones for the business.
Calculate Clarence’s adjusted taxable income from his business.
8) RRSPs + TFSAs – 2 pts
Joan contributes $3,600 during 2024 to an RRSP for herself and $4,000 to an RESP for her son, Nick. She
also deposits $5,000 into a TFSA and earned $60,000 from her employer during the year.
Calculate Joan’s taxable income based on this information.
9) Capital Gains & Losses – 2pts
Jeremy purchases 30 shares of Snappishness Ltd. in December, 2023 for $20 each. He purchases 10
more shares in February, 2024 for $5 each. On June 2, 2024 Jeremy sells 15 shares of Snappishness Ltd.
for $3 each. On June 28, 2024, Jeremy purchases 20 more shares of Snappishness Ltd. for $27 each.
Jeremy also had purchased a rare stamp that he liked the look of in 2017 for $1,200. He sold it this year
to a collector for $2,600. He’s never done anything like this before.
Calculate Jeremy’s taxable income from these transactions.
10) Gifts, Attribution & Death – 2 pts
Nancy sells a piece of land to her sister. The land cost Nancy $120,000 to purchase and an appraiser
believes it is worth $160,000. Her sister agrees to pay $140,000 for the land.
Calculate the proceeds of disposition to Nancy from this sale.
Calculate the ACB to her sister of the land.