Comprehensive Tax Return Preparation Case Study for Finance Students

This homework assignment focuses on the practical application of tax return preparation. Students are tasked with completing a personal income tax return based on provided documents, including T4, T4A, and T5 forms. The case study requires analyzing various financial data, such as employment income, pension income, investment income, tuition fees, and motor vehicle expenses, to accurately calculate and report taxable income, deductions, and credits. The assignment includes detailed calculations of motor vehicle expenses, Capital Cost Allowance (CCA), and the proper handling of tuition fees. The goal is to familiarize students with the process of tax filing, ensuring they can apply the rules learned in the course to real-world financial scenarios. The assignment also includes an analysis of tax implications for various income sources and the correct application of tax credits and deductions. The case study requires the use of tax software and the submission of a comprehensive tax return.

TRIAL VERSION
Motor vehicle expenses (Business)
Business Auto
Protected B when completed
Allocation of expenses Fiscal period % Amount CCA Terminal
Loss Recapture Owned by
business?Start End
T2125#1:James' Speciality Bike Shop2017-01-012017-12-31 100 8,120.00 6,120.00 Yes
No
Chart A - Motor vehicle expenses
PIckup Truck
24,720
30,900
3,210 00 3,210 00
1,150 00 1,150 00
1,500 00 1,500 00
4,000 00 4,000 00
Car Wash 290 00 290 00
10,150 00 10,150 00
80.00 8,120 00 8,120 00
8,120 00 8,120 00
Chart B - Available interest expense for passenger vehicle
2017-01-01
2017-12-31
1,150.00
The number of days in the fiscal period for which interest
was payable (accrual method) or paid (cash method) 365 10.00 3,650.00
1,150.00
Chart C - Capital Cost Allowance for motor vehicles
10.1
2016-06-01
55,000.00
25,500.00
13.00
25,500.00
25,500.00
30.0
7,650.00
17,850.00
80.00 6,120.00
Page 1 of 2
See the privacy notice on your return.
Description of automobile
Enter the kilometers you drove in the tax year to earn business income 1
Enter the total kilometers you drove in the tax year 2
Taxable Non Eligible Total
GST HST
Fuel and oil 3
Interest (see Chart B) 4
Insurance 5
License and registration 6
Maintenance and repairs 7
Leasing (See Chart D) 8
Other expenses (specify) 9
10
Total motor vehicle expenses 11
Business use part: Multiply line 11 by % 12
Business parking fees 13
Supplementary business insurance 14
Allowable motor vehicle expenses 15
Date interest payments commenced
Date interest payments terminated
Total interest payable (accrual method) or paid (cash method) in the fiscal period (A)
x = (B)
Available interest expense (amount A or B, whichever is less) (enter this amount on line 4 of Chart A above)
Class
Date acquired
Cost of vehicle (previous year)
UCC at the beginning of the year
Prior year GST/HST and PST rebates
Current year acquisitions
Cost of vehicle before taxes
Lesser of cost and $30,000
Trade-in value
Cost of vehicle for tax purposes
GST/HST
PST
Cost of vehicle for CCA
Lesser of costs and proceeds
UCC after acquisitions and dispositions
Adjustment for current-year acquisitions
Base amount for CCA
Rate %
CCA for the year
Recapture of CCA
Terminal loss
UCC at the end of the year
Business portion of CCA x %

TRIAL VERSION
80.00
80.00
Page 2 of 2
See the privacy notice on your return.
Business portion of terminal loss for the year x %
Business portion of recapture for the year x %