代做ADMS 3520 Overview of Canadian Income Tax Winter 2024 Assignment 2帮做R语言

ADMS 3520

(Overview of Canadian Income Tax)

Winter 2024

Assignment 2

Due: by Monday, March 18, 2024 at 5:00pm

Submit your/ your group’s assignment using our eClass course website. If you work in a group: choose 1 group member to submit the assignment (by the deadline) on behalf of the group.

Make sure you only submit one assignment.

Please use this coversheet (but do not include the rest of the question with your submission). The assignment question is after the coversheet.

Section (M,N,P)	Last Name	First Name

Attach this coversheet to your solution

Your assignment solution can be prepared individually or in groups of up to five students. You can work with students in any section. You identify group members on this coversheet. Please list names alphabetically by last name. Each group must work independently from other groups. Assignments must be submitted (prior to the deadline) by using our eClass course website.

Late assignments will not be accepted and will receive a 0. Follow the directions otherwise you will lose marks. Multiple assignment submissions will not be accepted.

Use Microsoft Word. You can submit a maximum of 1 file.

Include the cover sheet at the start of your Word document. Your answers including calculations and appendices, must:

· not exceed 6 pages (maximum). Note: the coversheet does not count in the page limit but all other pages do count. You should number your pages;

· be double spaced;

· be Times New Roman (or an equivalent sized) font;

· have 12-point font (minimum);

· have normal margins (i.e., margins of at least one inch on the top, bottom and each side);

· be written in sentences for your qualitative discussion(s); and

· have “Portrait” as the page layout (and not “Landscape”).

Marks will be deducted if any of the above instructions are not followed

Question 1.

You, CPA, work for Dollar and Dollar CPAs. It is now March 15, 2024 and you have just finished meeting with Mr. Robins, a new personal tax return (T1) client of your firm. Mr. Robins is a 35-year-old resident of Canada who is married with 2 children. Additional information about your client is provided in Exhibit I.

Mr. Robins isn’t sure if he’ll be able to file his taxes on time, so he wants you to draft a memo to him describing and calculating an estimate of his minimum net income for tax purposes, taxable income and federal income tax owing for 2023. He will use this estimate to make sure his payment is made on time, as he doesn’t want to pay any interest or penalties. If any amounts received in the year are tax-free, then he wants you to tell him. Mr. Robins wants you to round your numbers to the nearest dollar. When is his 2023 income tax balance owing due?

Mr. Robins is also planning to start a new consulting business this year. He has provided you with a list of his expected income and expenses in Exhibit II. Based on the information provided in the exhibit, please explain (briefly) to Mr. Robins whether you recommend that he incorporate his business at this time, or whether he should operate as a sole proprietor. If he is a sole-proprietor in 2024, when is his 2024 tax return, and 2024 income tax balance owing, due?

Your client wants to minimize his 2023 taxable income and tax owing and wants to see all your detailed calculations. You can ignore HST/GST and provincial income tax. You do not need to calculate his spouse’s, or children’s, tax owing. You do not need to do any tax planning at this time.

Note: you will lose 1 mark for each incorrect addition/subtraction from income/taxes owing.

Exhibit I- Additional Information

· Mr. Robins is married to Eliza, who is a stay-at-home parent. She earned dividend income of $10,000, discussed below, and no other income.

· Mr. Robins and Eliza’s 2 children are aged: 8 and 19. The children had very little income in 2023

· On January 1, 2023, Mr. Robins lent $150,000 to Eliza to have her, the lower-income spouse, invest in public company shares and earn dividend income. This loan does not bear interest. In 2023, Eliza earned $10,000 of eligible dividend income from these investments

· On July 1, 2023, Mr. Robins gave $30,000 to each of his 2 children. Both children bought Canadian mutual funds that earned: $3,000 of capital gains and $1,000 of interest (for each child in 2023)

· On December 1, 2023, Mr. Robins sold 1,000 shares of FGH Inc. (a public company) to his brother for $20,000 (in total). Mr. Robins’s adjusted cost base (ACB) of these shares was $21,000, in total. The fair market value of FGH Inc. on December 1, 2023 was $30 per share. Mr. Robins paid $50 (total) of brokerage fees on the sale of shares

· During 2023, Mr. Robins paid $1,250 in interest expense related to a bank loan that he borrowed in order to invest in shares. He also incurred $450 of interest expense on a bank loan used to buy jewelry for himself

· Mr. Robins has summarized his 2023 net income from various sources as:

o Salary $120,000

o 2022 Bonus (paid January 15, 2023) $17,000

o 2023 Bonus (from GGT Incorporated; paid January 19, 2024) $18,500

o Non-eligible dividend income (from Canadian companies) $3,000

· On July 3, 2020 Mr. Robins purchased Widget Co. shares as an investment for $13,000 Euros. On March 30, 2023, he sold these shares for $14,000 Euros. Assume that 1 Euro was worth 1.335 Cdn. $ on July 3, 2020, and 1 Euro was worth 1.374 Cdn. $ on March 30, 2023. Mr. Robins is not a stock broker and is not a day trader

· Mr. Robins has a net capital loss of $12,500 carried forward from the prior tax year

· In 2023, Mr. Robins had $17,000 withheld (and remitted to the government) in federal income tax by his employer. He also paid $3,500 in federal income tax instalments in 2023

· In 2023, Mr. Robins and Eliza made charitable donations to Canadian registered charities of $600 (Mr. Robins) and $400 (Eliza)

· Mr. Robins’s 19-year-old incurred $18,000 of university tuition fees in 2023 and is willing to transfer them all to Mr. Robins, if needed

· Mr. Robins paid $3,754.45 in Canada Pension Plan (CPP) contributions in 2023. You can assume that he can deduct $631 from his 2023 income and the rest is eligible for a credit. Also, in 2023 Mr. Robins paid $1,002.45 of employment insurance (EI) premiums

Exhibit II- New Business (2024)

· Mr. Robins is starting a new consulting business at the end of this year and is anticipating the following income and expenses.

· Anticipated revenue:

November	$1,250
December	$1,800

· Anticipated expenses:

o Advertising $300

o Accounting and bookkeeping fees $750

o Insurance (relating to business) $625

o Meals (relating to meetings with clients) $550

o Office supplies $1,000

o Computer software costs $3,000

· Mr. Robins had a friend tell him that using a corporation to earn his consulting income could save him a lot of money in tax. Do you recommend that he incorporate at this time? In one paragraph, explain why or why not.