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Profile Assignment 1-2021

Martin Dorne and his common-law partner Brian Lassiter live with their three adopted sons in Etobicoke, Ontario. In 2021, Martin worked as a construction worker and earned $98,500 in salary plus a $15,000 bonus. Brian earned $500 from investments. They also supported their three sons - David earned $10,500 from part-time work, Devon earned $5,150 and has a serious breathing condition, and Derek attended university and earned $13,500 from self-employment. Martin incurred various medical, tuition, and charitable expenses and received stock options and gifts from his employer.

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Sumaya Ahmed
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51 views2 pages

Profile Assignment 1-2021

Martin Dorne and his common-law partner Brian Lassiter live with their three adopted sons in Etobicoke, Ontario. In 2021, Martin worked as a construction worker and earned $98,500 in salary plus a $15,000 bonus. Brian earned $500 from investments. They also supported their three sons - David earned $10,500 from part-time work, Devon earned $5,150 and has a serious breathing condition, and Derek attended university and earned $13,500 from self-employment. Martin incurred various medical, tuition, and charitable expenses and received stock options and gifts from his employer.

Uploaded by

Sumaya Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Profile Assignment #1

Family:

Martin Dorne, SIN 499499499


Address: 150 Humber College Blvd, Etobicoke Ontario M1M1M1
Phone number 416-675-6622
He has no foreign income
He has not sold a principal residence during the year

Brian Lassiter, SIN 994994994


Same address and phone number

Martin Dorne born on Jan 15,1966 and is employed in construction work by a large public company.
His annual salary is $98,500 in 2021, none of which involves commissions. As the company was very
successful during 2021, Martin has been provided with a $15,000 bonus. This bonus was paid $7,000 in
December 2021, and the rest in February 2022.

Martin's employer withheld maximum EI premiums and CPP contributions, along with $18,000 in federal
income taxes. Other amounts withheld by his employer are as follows:
CPP/EI max
RPP Contributions $4,300
Union Dues 450

Martin's common-law partner is Brian Lassiter. Brian was born on Feb 5, 1970 and is legally blind. Brian
has 2021 income from investments of $500.

Martin and Brian adopted three orphaned brothers from a war torn country 8 years ago. Information on
these brothers is as follows:

David Dorne, Birth date Mar 3, 2005, in good health, and has income from part time jobs of $10,500.
Devon Dorne Birth date Apr 8, 2000 and has serious breathing problems that prevent him from
working on a full time basis. He has got a doctor’s letter attesting that his condition is serious but he
does not have a “marked” restriction of daily activities. He lives with Martin and Brian and has
income from part time jobs of $5,150.
Derek Dorne Birthdate May 15, 1998 and attends university on a full time basis for 8 months of the
year. Martin pays his tuition fees of $14,300, along with textbook costs of $1,200. He lives with Martin
and Brian and is in good health. He has self-employed income of $13,500. Assume he pays no CPP
contributions on this income. He would like to transfer his tuition credit to Martin.

Other Information:
1. During 2021, Martin spent $12,300 on employment related meals and entertainment with clients of his
employer. His employer reimbursed $7,300 of these costs.

2. During 2021, Martin makes his regular annual contribution of $2,000 to a registered charity, The
Shepherds Of No Hope. (Martin is a very pessimistic individual.)

3. The family's 2021 medical expenses, all of which were paid by Martin, were as follows:
Martin and Brian $ 2,200
David 1,700
Devon 10,600
Derek 4,500

4. Martin received options to purchase 500 shares of his employer's stock at a price of $45 per share 2
years ago. At the time the options were granted, the market price of the shares was $50 per share. During
July, 2021, when the shares are trading at $70 per share, Martin exercises all of these options. He is still
holding these shares on December 31, 2021.

6. During 2021, Martin receives several gifts from his employer:


• In recognition of his 10 years of service, Martin receives an engraved wrist watch. The retail value of
this watch is $800.
• At Christmas, all of the company's employees receive a gift box of vintage wines. The retail value of
these wines is $400.

Required:
A. Create a profile file, for Martin.
B. Determine Martin's minimum Net Income and taxable income for the 2021 taxation year.
C. Based on your answer in Part B, determine Martin's federal Tax Payable and amount owing
(refund) for the 2021 taxation year.
D. In order to submit this assignment, first of all save the file!! Then, you must create a PDF file (you
should either be able to Save as PDF, or print to PDF. Do not submit the file as a Profile file.
E. Email this file to me thru Course messages in Blackboard.

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