Gina worked hard all year as an employee of Thornton Enterprises Ltd. She earned a $95,000 salary, and received fringe benefits with a taxable amount of $7,500. On the side, she operated a small business, which earned her $16,500 of business income. Her ex-husband pays her $1,500 per month in spousal support and she withdrew $15,000 from her RRSP which she spent taking a trip around the world.
Gina also has an investment portfolio, which earned her $5,000 in interest income, $8,200 in taxable dividends. She had capital gains of $14,000 from the sale of some shares, and a capital loss on the sale of mutual funds of $(4,000). Gina has $0 of non-capital losses carried over from prior years, and $13,000 of net capital losses being carried over from prior years
She also owns a rental property. She collected $22,000 in rent receipts, but had $29,000 of expenses related to the rental property.
Thornton Enteprises Ltd. required her to move cities for her job, and she incurred $3,500 of nonreimbursed, deductible expenses related to the move. She also paid $4,000 into the company registered pension plan (RPP), which qualifies as an employment deduction.
a) What is Gina’s net income for tax purposes for the year? Use the ITA calculation structure shown in class.
b) What is Gina’s taxable income for the year?
c) What is the balance of Gina’s non-capital and net capital loss carryovers at the end of the year?