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Tim Markus Vice President of Phone Lines earned $92000 in salary last year In addition to his salary he also received low-interest loans from his employer Tim s interest rate on these loans is

Tim Markus, Vice President of Phone Lines, earned $92,000 in salary last year. In addition to his salary, he also received low-interest loans from his employer. Tim s interest rate on these loans is 3% and he owed $160,000 throughout last year. Tim used the loan to purchase a rental property (see Schedule 1). Assume a prescribed interest rate of 8% for the entire year. Five years ago, Tim invested in some common shares of a foreign corporation. He receives $18,000 in dividends (net of $2,000 with-holding tax) annually from this corporation. Last year, he also received taxable eligible dividends of $30,000 from his investment in a Canadian public company which is resident in Canada. Tim also owns $100,000 worth of 10% bonds. Schedule 1: Rental revenue .............................. $26,000 Maintenance expenses ..................... 5,500 Utilities on rental units ..................... 8,200 CCA - half-year rule ..................... 3,200 REQUIRED Compute Tim s income for tax purposes for last year.

Apr 09 2020 View more View Less

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