1) Which statement is true when it comes to RRSP?

a)  A withdrawal for medical expenses can be made on a tax free basis

b) An individual’s net rental loss will increase the contribution limit.

c)  An individual is not eligible to contribute to their own RRSP after the age of 71.

d) An individual’sunused contribution limit can be carried for a maximum of 10 years.

2). Which of the following statements is true regarding the disposition of jewellery?

a)  If a loss occurs, half of the loss can be offset against taxable capital gains from any property.

b) If a gain occurs it is not taxable.

c)  If a loss occurs it is deemed to be nil.

d) If a gain occurs, half of the gain can be offset against by an allowable capital loss from any source.

3. James gives $60,000 to his wife, Mary for the acquisition of a Canadian company on the

Toronto stock exchange.  During the year 2022 an eligible dividend of $8,000 cash was paid on the shares owned by his wife. Which of the following statements is true?

A)James will have to include $8,000 of income in his personal tax return for 2022 because the attribution rules will apply to the dividend received

B) James will have to include $9,200 of income in his personal tax return for 2022 because the attribution rules will apply to the dividend received

C) James will have to include $11,040 of income in his personal tax return for 2022 because the attribution rules will apply to the dividend received

D) Mary will have to include $8,000 of income in his personal tax return for 2022 because the attribution rules will apply to the dividend received

4) Which of the expenses do not qualify as an allowable moving expense?

a.  Cost of replacing drivers license at the new location

b.  Meals and temporary lodging at the new location for up to 30 days c.  Legal fee to register the title of a new residence

d.  Mortgage interest under $5,000 on the old residence while it is up for sale but uninhabited

Question 2 (25 minutes) (15 Marks) (Short Answer Questions 2 marks each)

A) Tyler owned anon-residential building, purchased in 2019, the original cost of which was    $500,000, plus $250,000 for the cost of land. The UCC value of the building was $390,000, and the land and building were sold for $920,000 in 2022. The split the taxpayer used

between land and building was $320,000 for building and $600,000 for land. Assuming that (i)  What are the initial tax implications of this transaction that Tyle made? 4 Marks

(ii) What are the tax implications of the transaction once you, a tax specialist reviews this sale by Tyler?  8 Marks

B) Mary had total income of $125,000 and earned income of $110,000 in 2021. At the end of

2021, she had unused RRSP contribution room of $6,000. Her pension adjustment from 2021 was $9,000. She anticipates a pension adjustment of $11,000 in 2022.

Required: 3Marks

Calculate the maximum RRSP deduction that Mary can make for the 2022 taxation year.

Question 3 (50 minutes) (25 Marks)

Henry Adams has come to you for some help in computing his income from his investments. He is trying to plan for the payment of his 2022 taxes and wants an idea  as  to  how  much  that  tax  bill  will  be.  He  has  provided  you  with  the following details regarding his investments for 2022.

Non-Eligible Dividend from CCPC……………………………………….$3,000

Rental Properties

At  the  beginning  of  2022,  Henry  had  two  rental  properties.   These

properties  are  expected  to  have  the  following  operating  cash  flows

associated with them:

                                                                                                                  #1                #2

** The real estate agent received a commission for renting each property.  The agent paid for the staging fees but the landlord covered the Advertising cost.

Property #1 was purchased in 2012 at a cost of $700,000 for both the land and building. The cost of the land was $195,000 of the total purchase price. Property #2 was purchased in 2014 at a total cost of $605,000; the fair market value of the land at the time was $205,000. The UCC balance in Class 1 for property 1 was $342,735 and property 2 was $294,567 at January 1, 2022.

During  2022,  the  local  community  enacted  strict  new  bylaws  on  the  safety requirements of rental properties. To upgrade the two properties to the new code would require $90,000 for property #1 and $85,000 for property #2. As a result, Henry  decided  to  improve  #1  and  paid  $90,000  during  July  2022.  However,  he decided to sell property #2 and did so for $848,000, effective May 5, 2022. The fair market value of the land was appraised to be $380,000 and the building $468,000. The purchaser of the property paid $300,000 on May 5, 2022, plus a mortgage that