Shirin Gilani Incurred the Following Income, Disbursements, and Losses in 2019

question 10

Essay

Shirin Gilani incurred the following income, disbursements, and losses in 2019 and 2020:
$\begin{array}{|l|c|c|}\hline&2019&2020\\\hline \text { Employment income } & \$ 25,000 & \$ 28,00 \\\hline \text { Proprietorship income } & 0 & 5,000 \\\hline \text { Proprietorship loss } & 3,000 &0 \\\hline \begin{array}{l}\text { Dividend income (non- } \\\text { eligible dividends) }\end{array} & 10,000 & 10,000 \\\hline \text { Bond interest } & 1,000 & 1,100 \\\hline \begin{array}{l}\text { Business investment loss on } \\\text { loan made to a qualified small } \\\text { business corporation }\end{array} & 10,000 &0 \\\hline \text { RRSP contribution } & 2,000 & 2,000 \\\hline \begin{array}{l}\text { Taxable capital gains from the } \\\text { sale of public shares }\end{array} & 0 & 1,000 \\\hline \begin{array}{l}\text { Allowable capital losses from } \\\text { the sale of public shares }\end{array} & 2,000 &0 \\\hline\end{array}$

Additional information:
$\bullet$ 2018 was the first year that Shirin sold a capital asset.
$\bullet$ Shirin incurred a business loss of $5,000 from the proprietorship in 2018 (the first year of the business) that was not needed to reduce net income for tax purposes in 2018.
$\bullet$ Shirin has never used the lifetime capital gains deduction.
Required:
Calculate Shirin's minimum taxable income for 2019 and 2020, in accordance with Section 3 of the Income Tax Act.(Ignore CPP enhanced contributions in your answers.)
(Marks will only be awarded for answers with work shown.)

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