70.2K

Verified Solution

Link Copied!

Note: use a postal code ONTARIO, $L7A1Z1,$ BRAMPTON

Phone number: $,(647)369-7851$

Note: $647$

Email address:

kdox$12345$@rogers.$ca$

Taxpayer #$2$

Keith Dox lives with his wife, Katie. Katie's net and taxable income $is$ $$34,000.$ Her income consists $of$ one

$T4$ and $$4,500in$ tips. She has already filed her own return.

Keith and Katie sold their original home located $at216$ Bayfield Street, Your City, $YP,X7X7X7,$ for

$$400,000on$ March $31,2023,$ before moving into their new home a few blocks away $at$ their current

address. They had purchased the house $on$ Bayfield Street together $in2018$; they lived exclusively $at$ that

address and had not owned any other residential property during the time they owned that home.

Neither Keith nor Katie changed employment last year; they moved simply because they liked the new

house.

Keith has a Tangerine investment account which pays him interest. $He$ never received $an$ information

slip but was able $to$ total $up$ the $$20\mathrm{.}30$ interest $he$ received last year from Tangerine. Keith receives

income each year $onaT3$ slip from a trust that was set $upby$ his father. Keith also has a Royal Bank

savings account $to$ which $he$ contributes $25\%of$ the funds, and Katie contributes the remaining $75\%.In2018,$ Keith inherited a bank account $in$ the $US$ with a balance $ofUS$ $$120,000$ from his uncle. $At$ that

time, the exchange rate was $1\mathrm{.}2535.He$ neither contributed nor withdrew any amounts from this

account. According $to$ the $2023$ bank statements, the account had a balance $ofUS$ $$124,000on$ January

$1^{st}$ and $US$ $$125,240on$ December ${31}^{st}.$ The bank statements also show that the only credits $on$ this

account are for monthly interest payments. For $2023,$ the annual average exchange rate was $1\mathrm{.}3497.$

Keith

Answer & Explanation Solved by verified expert

See Answer