Tax law questions and answers in December 2021

Luther and Lexi are married and file a joint return. Luther and Lexi were enrolled in their Marketplace second lowest cost silver (SLCSP) high deductible health plan (HDHP) with family coverage for al...
ABC Inc. provides Kelly with a company car. The car is leased for 500/month (including 13% HST and excluding insurance) and was made available to her for eight months. ABC pays all of the operating co...
Assume it is December 1, 2017 and you own a small business with a calendar year-end for tax purposes. You expect your business to report a large profit in 2017, when the tax rate is 35%. However, the ...
Arturo has three Forms 1099-INT showing the following amounts: Big Bank Savings and Loan $100 Country Credit Union Dividend $50 State of Virginia Bond interest $200 How much interest is taxable on his...
Question 4-B Sally comes to you for some free tax advice, because 2021 was a year of change and turmoil for her. For the first time, she was not gainfully employed for the whole year, having been laid...
Franklin is a medical doctor and a scientist. He works at a local hospital in the mornings, attending to patients. At lunchtime he takes a train to the local university where he works in a research la...
Question The summary of the financial statement of New Frontier Limited for 2020 is as follows: Gross Sales                              $40,000,000.00 Cost of Sales   ...
Michael works as a plumber for J&C Contracting. Michael received regular wage, mileage reimbursed under a non-accountable plan, and sick pay from an employer-paid insurance plan. Which of the comp...
Basic Scenario 4: Charles and Heather Brooks Interview Notes Charles and Heather are married and will file a joint return. Heather is a U.S. citizen with a valid Social Security number. Charles is a ...
Basic Scenario 3: Archie and Tina Reynolds Interview Notes . Archie and Tina Reynolds are married and always file Married Filing Jointly. . Archie earned $32,000 in wages and Tina earned $24,000 in wa...
Belinda has income from several investments. She incurred the following investment expenses: $238 - interest on money borrowed to invest in public shares $127 - interest on money borrowed to contribut...
Rufus must make one payment to his ex-spouse, Debra, for the sum of $7,500. This is the only and final payment following the end of their marriage. Is Debra required to include the $7,500 on her tax r...
Phil is 66 years old and lives in a retirement home. He has paid $10,000 in attendant care fees, which he decided to claim as a medical expense. Form T2201 is on file with the CRA. How much can Phil c...
Victoria is 71 years old and moved into a nursing home last year. She paid a total of$9,000, but the receipt does not provide a breakdown of the nursing home fees. She decided to claim the full amount...
Glenda is enrolled in a part-time program at the local university, for which she paid $2,500tuition fees. She also paid $150 for books. She received a scholarship of $4,000. How much of her scholarshi...
Betsy is single and attended university full-time for 4 months in 2020. Her tuition for theyear was $2,100 and her campus living expenses were $5,000. She also paid $1,500 forbooks. Betsy's income for...