Problem
Neil Down is a 47 year old employee with Random Corp. His salary was $165,000 in 2021. During the year his employer gave him a bracelet as a 20 year anniversary award worth $3,300 and a Jura espresso machine worth $1,200 as a gift for his wedding in May. Random Corp deducted the required income tax, EI and CPP amounts from his paycheques during the year.
Neil owns a portfolio of big pharma stocks. He sold 1,000 shares of MiracleDrugs Inc., a publicly traded company, during 2021. These shares had an adjusted cost base of $13/share and he was able to sell them for $33/share during the year.
Neil is also required by his employer to work from home, where he has space that he uses exclusively to carry out various employment duties and to meet customers on a regular and continuous basis. His work space in the home represents 15% of the total floor space in his home. His home expenses for the year consisted of insurance of $2,200, utilities of $2,200 and repairs of $1,400. Neil and his spouse purchased the home in 2021 for $2,150,000. Neither of them had owned a home previously.
Neil's spouse is infirm and had net income for tax purposes of $4,000 in 2021. Neil's spouse was a full-time student at Seneca College. Her tuition was $14,250 in 2021. Neil's 26 year-old infirm cousin also lives with them. His infirm cousin had no income during the year.
Neil had a $4,000 allowable capital loss carryover from a number of years ago that he has not been able to use in a prior taxation year.
Task
• Calculate the amount to report on each line in the table below, including Neil's 2021 Net Income for Tax Purposes and Taxable Income.