# Tax 8

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practice Examination Solution - Chapter 4 (Tax Payable For Individuals) Page 3 Solution 15 (10 Marks) Her tax credits would be as follows: Basic Personal Amount Amount For Eligible Dependant - Daughter Child - Daughter 2,19 Caregiver Including FCA - Son (\$ 6,40 Credit Base \$25,937 Rate ] Total Credits \$ 3,891 Since Ms. Borat claims her daughter for the eligible dependant credit, her son cannot qualify for this credit. This means that she can claim the caregiver credit, including the family care- giver amount, for him. 1 grading point for each highlighted item. Total 5 Your Mark = [{(# of grading points + 7)(1 0%)=__% Solution 16 (15 Marks) The credit base for 2012 would be I chooses to claim \$23,000, leaving a c resulting credit would be: i o | to \$69,000 [(75 rward of \$87,00 54 )l. However, he 110,000 - \$23,000). The \$ 30 Percent 6,612 Total Credit \$6,642 As his income for 2013 is unchanged from 2012, the | mit would be the same \$69,000 {( ) ]. Charitable donations can be carried forward for upto 5y . Asa result, the final year to claim any unused portion of his 2012 donation would be 1 grading point for each highlighted item. Total 12 Your Mark = [(# of grading points + 12)(18%)] = ___%
Practice Examination Solution - Chapter 4 (Tax Payable For Individuals) Page 4 Solution 17 (20 Marks) The required calculation is as follows: Amount B Expenses For Kevin And Spouse Amount C » 2012 (2,109) Subtotal \$ 733 Amount D Son's Medical Expenses Reduced By The Lesser Of: B ) = \$216 7,984 Allowable Amount Of Medical Expenses Amount A The Appropriate Rate Medical Expense Tax Credit \$1,308 1 grading point for each highlighted item. Total 12 Your Mark = [(# of grading points + 12)(20%)] = ___% Solution 18 (15 Marks) The available education related credits for the year could be calculated as follows: Tuition Amount R \$ ] Education Amount [(8)(\$ 3,200 Textbook Amount [(8)(\$6° 520 Fducation Related Amounts From Current Year \$11,070 Rate 15% Education Related Credits From Current Year \$ 1,661 Carry Forward Credit 75 Total Available Education Related Credits \$ 2,336 Alternative Calculation Education Related Amounts From Current Year (Preceding Calculation) \$11,070 Carry Forward Amount 4,500 Total Available Education Related Amounts \$15,570 Rate 15% Total Available Education Related Credits \$2,336 fore deducting education related credits would be \$3,297 This would be sufficient to absorb all of the \$2,336 in education to subsequent years. 1 grading point for each highlighted item. Total 11 Your Mark = [(# of grading points + 11)(15%)] = __ %