Chapter 9 SSP and Exercises
Aaron Schwartz owns land with an ACB of $225,000 and a FMV of $300,000. He gifts
this land to his spouse. Indicate the income tax consequences to Mr. Schwartz and the
ACB of the property to his spouse after the gift transaction assuming Mr. Schwartz does
not elect to avoid the rollover of ITA 73. How would your answer change if Mr. Schwartz
does elect to avoid the ITA 73? - ANS-
Jeanine was born in 2021. In 2021, her father establishes as RESP for her and
contributes $500 to the plan, while Jeanine's grandfather contributes an additional
$1,200. In 2022, her father contributes $1,500 and her grandfather adds a further
$2,400. Jeanine's family has never had family income of more than $40,000. Determine
the amount of the CESGs that would be added to Jeanine's RESP in 2021 and 2022. -
ANS-
Joanna sparks lives with her spouse of many years. John Sparks. They are both 67
years of age. In 2022, Joanna received $7,700 in OAS payments. She also received
$85,000 of pension income from an RPP that was sponsored by her former employer.
She has not yet applied for CPP. John's only income for 2022 is $7,700 in OAS
payments. Neither Joanna nor John have any personal income tax credits other than
the BPA, age credit, and pension income credit.
Joanna has asked you to indicate the savings in federal income tax that would result
from making optimum use of pension income splitting for the 2022 taxation year. You
will need to determine the impact by calculating income tax for each individual 1)
without the pension split 2) with the pension split - ANS-
Jose Morph has visual, speech and hearing disabilities. However, they are not severe
enough to allow a claim for the disability tax credit. In 2022, he worked full time basis as
a programmer for a large public company and his employment income was $78,000.
The only employment expense claimed was $3,000 toward the company RPP. His need
for full time attendant care has been certified by a medical practitioner and, in 2022, the
attendant care costs Jose $23,000. Other deductible costs required to support his ability
to work as a person with a disability totalled $18,000, all of which were certified by a
medical practitioner. His medical insurance reimbursed him for $5,000 of these
expenses. Jose will not include any of these costs as a medical expense tax credit.
Calculate Jose's disability supports deduction for 2022. - ANS-
Aaron Schwartz owns land with an ACB of $225,000 and a FMV of $300,000. He gifts
this land to his spouse. Indicate the income tax consequences to Mr. Schwartz and the
ACB of the property to his spouse after the gift transaction assuming Mr. Schwartz does
not elect to avoid the rollover of ITA 73. How would your answer change if Mr. Schwartz
does elect to avoid the ITA 73? - ANS-
Jeanine was born in 2021. In 2021, her father establishes as RESP for her and
contributes $500 to the plan, while Jeanine's grandfather contributes an additional
$1,200. In 2022, her father contributes $1,500 and her grandfather adds a further
$2,400. Jeanine's family has never had family income of more than $40,000. Determine
the amount of the CESGs that would be added to Jeanine's RESP in 2021 and 2022. -
ANS-
Joanna sparks lives with her spouse of many years. John Sparks. They are both 67
years of age. In 2022, Joanna received $7,700 in OAS payments. She also received
$85,000 of pension income from an RPP that was sponsored by her former employer.
She has not yet applied for CPP. John's only income for 2022 is $7,700 in OAS
payments. Neither Joanna nor John have any personal income tax credits other than
the BPA, age credit, and pension income credit.
Joanna has asked you to indicate the savings in federal income tax that would result
from making optimum use of pension income splitting for the 2022 taxation year. You
will need to determine the impact by calculating income tax for each individual 1)
without the pension split 2) with the pension split - ANS-
Jose Morph has visual, speech and hearing disabilities. However, they are not severe
enough to allow a claim for the disability tax credit. In 2022, he worked full time basis as
a programmer for a large public company and his employment income was $78,000.
The only employment expense claimed was $3,000 toward the company RPP. His need
for full time attendant care has been certified by a medical practitioner and, in 2022, the
attendant care costs Jose $23,000. Other deductible costs required to support his ability
to work as a person with a disability totalled $18,000, all of which were certified by a
medical practitioner. His medical insurance reimbursed him for $5,000 of these
expenses. Jose will not include any of these costs as a medical expense tax credit.
Calculate Jose's disability supports deduction for 2022. - ANS-
