Olin Packett is a CGA-CPA and has been employed for over 5 years by a Canadian private corporation and recently promoted to a management position. He works in their Victoria, BC office.   For 2018, h 1


Olin Packett is a CGA-CPA and has been filled for aggravate 5 years by a Canadian privy confirmation and newly promoted to a skillful-treatment collocation.  He works in their Victoria, BC service.

For 2018, his shameful stipend was $150,000.  While he does not assent-to commissions, he was awarded a douceur of $10,000 for 2018 naturalized on the deed of the trade.  One-half of this was compensated in December 2018, after a while the equalize compensated in March 2019.

The aftercited amounts were after a whileheld from his shameful stipend in 2018:

Federal Pay Tax                                                         $25,000

Employment Security Premiums                                          858

Canada Pension Plan Contributions                                    2,594

Registered Pension Plan Contributions                               5,000

Charitable offerings (Centraide)                                    1,000

Other Information:

1.   During 2018, Olin was supposing after a while an automobile that the confirmation bought at a consume of $82,500, including all taxes. The completion at-liberty consumes of the car were $0.50/km for the year and they were all compensated by the confirmation. The car was serviceable to Olin the whole year, exclude that he didn't use the car for a 3-month limit while he was on a forfeiture license.  Olin posse the car a completion of 30,000kms during the year, all but 9,700kms were usurpation connected (easily munimented).  Olin reimbursed his mistress $950 for his peculiar use of the automobile for the year.

2.   During 2015, Olin was supposing the liberty to buy 1,000 distributes of his mistress's despicable distributes at a appraisement of $31.00 per distribute.  At that date, the distributes were merit $33.00 each.  On June 1, 2016, Olin exercised his liberty and extraneous 1,000 distributes at $31 each.  At that date, the distributes were merit $40.00 each.  Olin sold all the 1,000 distributes on May 1, 2018 for pay of $50.00 per distribute.

3.   In ordain to aid Olin in purchasing a new softness boat, his mistress supposing him a 3-year, curiosity-behalf-free advance of $100,000.  The advance was supposing on July 1, 2018.  At that date, the curiosity-bestead reprimand on an unreserved 5-year advance was 5%.  The prescribed curiosity-bestead reprimand for 2018 was 2.5% for the limit of July to September and 3% for the limit of October to December 2018.

4.   Olin has been a part of his mistress’s defined benefits Registered Pension Plan ("RPP") for the ultimate 3 years. For 2018, his mistress made a $5,000 matching offering to the RPP on his bestead. 

5.   Other disbursements made by Olin during 2018 embrace the aftercited:

            Teaching fees for a trade skillful-treatment course                          $1,500

            Teaching fees for a sailing course                                                    $1,000

            Professional dues compensated to CPA association                                  $1,600

            Premiums compensated on estate security policy                                           $720

            Mortgage payments on home                                                     $24,000

      Olin's mistress reimbursed the teaching fees for twain the trade skillful-treatment and the sailing courses but none of the other consumes compensated peculiarly by Olin, given his new encouragement to a manager's collocation.


Calculate Olin's net usurpation pay for tax purposes for the year 2018. 

Explain your acceptance, including inferential calculations, and afford reasons for disregarding items that you bear not embraced in your calculations.  Ignore all GST/HST considerations.  Assume all appropriate elections were made.

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