FIN 4012 Taxation Case #2 Norman A. Nelson 12/07/2018
FIN 4012 – Advanced Financial Planning – Spring 2018
Taxation Case #2: James Beach – Taxation Year 2017
James Beach, born 1982-07-12, is a construction engineer who works for Global Building
Corp. Earning approximately $130,000 p.a.
He lives in a 3-bedroom bungalow at 626 Beaches Trail, Toronto, ON M5M 5M5 which
he purchased four years ago for $575,000 with the help of a 5-year 2.59% fixed rate RBC
mortgage of $500,000 (30-year amortization).
At the time of acquisition he withdrew $24,000 from his RRSP under the Home Buyers’
Plan; repayment started in 2015.
James rents his finished walk-out basement (approximately 25% of his total square
footage) to Olive Oyle for $1,050 per month. His home expenses for 2017 are as follows:-
| Utilities | $500 per month | Mortgage Interest | $11,860 p.a. |
| Insurance | $150 per month | Maintenance | $5,180 p.a. |
| Property Tax | $450 per month | Accounting Fee | $160 p.a. |
He received T4 Slip from his employer (Global Building Corp.) showing the following:-
| Employment Income | Box 14 | $129,750.00 |
| Employee’s CPP | Box 16 | $2,564.10 |
| Employee’s EI premiums | Box 18 | $836.19 |
| Income Tax Deducted | Box 22 | $35,090.39 |
| Pension Adjustment | Box 52 | $9,850.00 |
He received investment income slips from CIBC as follows:-
| T5 | Dividend Income | Box 24 | $2,500.00 |
| T5 | Interest Income | Box 13 | $3,450.00 |
| T3 | Capital Gains | Box 21 | $6,900.00 |
FIN 4012 Taxation Case #2 Norman A. Nelson 12/07/2018
James also tells you that he:-
1. Has a non-contributory pension plan at work;
2. Contributed $400/month to his RRSP (Mar – Dec 2017);
3. Contributed $4,600 to his RRSP (Jan – Feb 2018);
4. His RRSP contribution limit for 2017 is $5,000;
5. Annual Dues of $500 paid to Ontario Society of Professional Engineers;
6. Did major dental work costing $8,536 but only 50% was covered by his insurance
company (Sun Life);
7. His health insurance premiums are partially paid by his employer. (He paid the
difference of $2,000);
8. Made charitable donations totaling $3,000;
9. Purchased $100.00 in GO Transit Passes monthly;
10. Attended GBC School of Continuing Education and received a T2202A form (see
details below). NB. $1,500 tuition paid for Jan to June 2017 & $1,300 paid for July
to Dec 2017
| Tuition Fees | Column A | $2,800.00 |
| Number of Months Pat-Time | Column B | 12 |
| Number of Months Full-Time | Column C | 0 |
If you need additional information you may reach James at 416-000-0416 or via email at:
jimbeach@builderboys.ca.
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